House Bill 250 Summary

• Authorizes an income tax credit for voluntary cash contributions made by taxpayers to rural hospitals (defined as licensed hospitals with 50 or fewer licensed beds).

• Business enterprises may claim a credit up to 75% of their total tax liability or the amount contributed, whichever is less; individuals and heads of household may claim up to 100% of their tax liability or amount contributed.

• Unused credits may be carried forward for five consecutive years from the close of the tax year in which credits were earned.

• Contributions for which credits are claimed cannot be deducted for state income tax purposes and must be certified with the Department of Revenue, which maintains a list of eligible rural hospitals.

• Annual credit allocation caps are set at $15,000,000 for business enterprises and $5,000,000 for individuals, with no credits allocated after December 31, 2029; the act takes effect January 1, 2025.