Bill > HB1774

This bill establishes a new tax credit program for charitable donations to local hospital foundations, allowing qualified taxpayers to claim a tax credit for up to 50% of their donations to eligible local hospital foundations, with a maximum credit of $2,500 per taxpayer per year. The tax credit will be available for tax years beginning on or after January 1, 2027, and is subject to a statewide annual cap of $2 million. A local hospital foundation is defined as a 501(c)(3) nonprofit organization that provides financial relief for unpaid hospital bills at not-for-profit hospitals in the taxpayer's area. To claim the credit, taxpayers must file an affidavit with their income tax return verifying their donations, and the credit can only be used against state income tax liability. Unused credits can be carried forward for up to three subsequent tax years, but cannot be sold, transferred, or refunded. The tax credit is designed as a domestic and social tax credit and will automatically sunset six years after its effective date unless reauthorized by the state legislature, providing a mechanism for periodic review of the program's effectiveness and continued relevance.