AR HB1674

Creates the Helping Enhance Access to Rural Treatment (HEART) Act, establishing an income tax credit for contributions to qualified rural hospital organizations located in counties with populations under 50,000 or designated as critical access hospitals

Allows individual taxpayers to claim a credit for the actual amount contributed, with limits of $5,000 for individuals and $10,000 for married couples filing jointly during January 1-June 30 each year; corporations may claim up to 75% of their tax liability

Caps the total annual program at $75 million in aggregate credits, with individual rural hospitals limited to $4 million per year ($2 million from individual donors and $2 million from corporate donors in the first half of each year)

Requires participating hospitals to use contributions for healthcare services to rural residents, have at least 10% of annual net revenue from indigent/charity care or bad debt, and submit five-year financial viability plans to the Department of Health

Mandates Department of Inspector General annual audits of the program and limits third-party administrative fees to 3% of contributions received; effective for tax years beginning January 1, 2025