Bill > HB86

This bill establishes the Rural Hospital Investment Program to help financially support rural hospitals in Alabama by creating a tax credit system for donations. The program creates a board within the State Treasurer's office composed of government officials and hospital/business representatives to oversee the initiative. Eligible rural hospitals must be located in federally designated rural areas, serve Medicare and Medicaid patients, provide services to indigent patients, and submit a five-year financial plan. Qualified donors can receive tax credits for donations to these hospitals, with different credit limits based on filing status: individual taxpayers can claim up to $15,000, married joint filers up to $30,000, pass-through entities up to $450,000, and corporations up to $500,000. The program has an annual aggregate tax credit cap that starts at $20 million in 2026 and increases to $30 million in subsequent years, with individual hospital donation limits ranging from $750,000 to $1,250,000 depending on the tax year. Donors will receive a 100% tax credit for their qualified donations, which can be carried forward for up to three years. The tax credits can be used against various state taxes, including income tax, financial institution excise tax, insurance premium tax, and utility tax. The program aims to strengthen rural hospitals' financial viability by providing a new funding mechanism through charitable donations incentivized by significant tax credits.

Budget and Finance

https://alison.legislature.state.al.us/bill-search