Income Taxes, tax deduction for members of a Health Care Sharing Ministry for certain health care sharing expenses

SB 245, the Health Care Sharing Ministries Tax Parity Act, allows members of health care sharing ministries to deduct their contributions toward qualified health care expenses from their Alabama state income tax, starting January 1, 2027. It directly affects individuals who are members of these ministries, treating their contributions similarly to health insurance premiums and health savings account expenses for tax deduction purposes. The bill requires taxpayers to claim the deduction on their state tax return and provides that contributions received for medical expenses (without a prior deduction) are not taxable income. This legislation aims to create tax parity between health care sharing ministries and traditional health insurance for Alabama taxpayers.