To enact the Pregnancy Resource Act; Relating to income tax; to provide a state income tax credit to individuals and businesses that make contributions to eligible charitable organizations that operate as a pregnancy center or residential maternity facility; and to specify the obligations of the Department of Revenue in implementing the act

HB 284, the Pregnancy Resource Act, creates a state income tax credit for Alabama taxpayers who donate to eligible pregnancy centers or residential maternity facilities. Individuals and businesses can claim a credit equal to 50% of their state income tax liability (capped at $10 million total annually) for cash contributions to organizations that provide free pregnancy support services, maintain a physical presence in Alabama, and do not provide or support abortion services. The Department of Revenue verifies organizations’ eligibility through written certification, requiring them to confirm they are 501(c)(3) nonprofits, serve Alabama residents, and prohibit abortion-related activities. This policy directly affects donors, qualifying pregnancy resource organizations, and the state’s tax administration process.