HB 1421 Summary

• Creates the Helping Enhance Access to Rural Treatment (HEART) Act allowing individual and corporate income tax credits for contributions to eligible rural hospital organizations in counties with populations under 50,000 or critical access hospitals.

• Establishes income tax credits for individuals up to $5,000 (single/head of household) or $10,000 (married filing jointly) for contributions made January 1-June 30, with additional contributions allowed July 1-December 31, and corporations up to 75% of tax liability or actual amount expended.

• Caps aggregate state credits at $75,000,000 annually per hospital at $4,000,000 annually, with $2,000,000 individual and $2,000,000 corporate donor limits for January 1-June 30 period, with preapproval required from Department of Finance and Administration before contributions.

• Requires Department of Health to approve eligible rural hospital organizations, create operations manual ranking hospitals by financial need, and maintain website with lists, rankings, and monthly progress reports; requires annual audits by Department of Inspector General.

• Becomes effective for tax years beginning January 1, 2024; rural hospital organizations must submit five-year financial plans and report on contribution expenditures with third-party administration costs capped at 3% of contributions received.