Bill > SB245

This bill, known as the Health Care Sharing Ministries Tax Parity Act, allows individuals who are members of a Health Care Sharing Ministry to deduct certain health care sharing expenses from their adjusted gross income for state income tax purposes, starting with tax years beginning on or after January 1, 2027. A Health Care Sharing Ministry is defined by existing Alabama law, and a "qualified individual" is simply a member of such a ministry. "Qualified health care sharing expenses" are defined as contributions made by a qualified individual to their health care sharing ministry. To claim this deduction, individuals must report it on their annual state tax return and provide any necessary information to the Alabama Department of Revenue, which is responsible for administering the program and will adopt rules to implement it. Additionally, any contributions received by a taxpayer for medical expenses for which no deduction has been taken will not be considered taxable income. This act will become effective on October 1, 2026.

Health and Social Services

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