HB1299
To Create A Tax Credit For Contributions To A Pregnancy Resource Center.
Last Action (Jan. 26, 2023): Recommended for study in the Interim by Joint Interim Committee on REVENUE & TAXATION- HOUSE
Sponsors
AI-Generated Summary
House Bill 1299 creates a state income tax credit for taxpayers who make contributions to qualified pregnancy resource centers in Arkansas. The credit is equal to 50% of the contribution amount, with a minimum donation of $50 and a maximum credit of $50,000 per taxpayer per year. The total amount of tax credits available statewide is capped at $2.5 million per fiscal year, administered by the Department of Finance and Administration. To qualify, a center must be a non-residential, tax-exempt facility that provides free pregnancy testing and material support to women to encourage carrying pregnancies to term, while explicitly not performing or referring for abortions. The Department of Human Services is tasked with defining, certifying, and overseeing these centers. Unused credits may be carried forward for four consecutive tax years.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include qualified pregnancy resource centers, which may see an increase in private donations due to the tax incentive, and taxpayers who contribute to these centers, as they receive a 50% credit against their state tax liabilities. Women seeking assistance for crisis or unplanned pregnancies who utilize the services provided by these centers also benefit from the potential increase in resources available at these facilities.
Who Might Suffer?
The bill could be viewed as negatively impacting the state budget by reducing tax revenue by up to $2.5 million annually. Additionally, organizations or individuals who support abortion access or comprehensive reproductive healthcare may feel negatively impacted, as this legislation provides a financial subsidy through the tax code exclusively to organizations that do not provide or refer for abortion services, potentially creating a competitive disadvantage for other types of reproductive health providers.
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