HB 342 Alabama House · 2026 Regular Session

Taxation; participation in the federal tax credit for individuals making qualified contributions to scholarship granting organizations provided for

HB 342 allows Alabama to participate in a federal tax credit program that enables individuals to claim a credit on their federal income tax for contributions to scholarship granting organizations (SGOs). The bill requires the Alabama Department of Revenue to annually submit a list of qualifying SGOs in the state to the federal government and certify Alabama's participation. This ensures Alabama residents can use the federal credit for eligible contributions starting in tax years after 2026. The bill takes effect immediately and does not create a new state tax credit.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House Passage

Feb 2026

Senate Passage

Governor

Introduced Jan 29, 2026 Last action Mar 5, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 4 edits · Feb 26, 2026

MODERATE

The bill was updated from an introduced draft to its final engrossed version, incorporating the official legislative history (dates and voting results) and correcting the federal law citation from a specific Public Law number to the permanent United States Code section. A significant policy change was made in Section 1(c), where the Department of Revenue's authority to submit the required list of scholarship organizations was expanded to include the power to establish rules for implementing the act.

Scope change

The bill's scope regarding administrative authority was expanded to allow the Department of Revenue to create rules for implementation.

REQUIREMENT

The Department of Revenue's authority was changed from merely submitting a list to also establishing rules for the implementation and administration of the scholarship tax credit program.

TECHNICAL

The citation for the federal tax credit was updated from a temporary Public Law reference to the permanent United States Code section (26 U.S.C. § 25F).

The introductory synopsis and page headers specific to the 'Introduced' status were removed to reflect the bill's final passage.

TIMELINE

The final engrossed version includes the official House passage dates and voting record (103 Yeas, 0 Nays, 1 Abstain) that were not present in the introduced version.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 4, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Feb 26, 2026

Upper · Passed

Pending Committee Action in Second House (Finance and Taxation Education)

upper

Feb 26, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 655

lower

Feb 26, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 654

lower

Feb 26, 2026

Introduced

Fiscal Responsibility Engrossed Substitute Offered (Fiscal Responsibility)

lower

Feb 11, 2026

Lower · Passed

Reported Out of Committee House of Origin (Fiscal Responsibility)

lower

Jan 29, 2026

Lower · Passed

Pending Committee Action in House of Origin (Fiscal Responsibility)

lower

1 primary · 0 co-sponsors