HB1421
To Create An Income Tax Credit For Contributions To Certain Rural Hospital Organizations; And To Create The Helping Enhance Access To Rural Treatment (heart) Act.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1421, titled the 'Helping Enhance Access to Rural Treatment (HEART) Act,' establishes an income tax credit for taxpayers who make financial contributions to qualifying rural hospital organizations in Arkansas. To be eligible, hospitals must meet specific criteria, including being located in a rural county or designated as a critical access hospital, participating in Medicare and Medicaid, and demonstrating financial need based on patient margins. The Department of Health is tasked with ranking these organizations by financial need, creating an operations manual, and maintaining a list of eligible recipients. Individual and corporate taxpayers can claim the credit, subject to annual caps and specific contribution limits. The total aggregate amount of tax credits allowed under the bill is capped at $75 million per taxable year. Unused credits may be carried forward for up to five years, and the legislation outlines reporting requirements for both the hospitals and third-party administrators involved in the process.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are rural hospitals that meet the eligibility criteria, as they will receive increased financial support through tax-deductible donations. Residents of rural counties and areas served by critical access hospitals also benefit through the enhanced financial stability and continued operation of their local healthcare providers. Additionally, individual and corporate taxpayers in Arkansas benefit by receiving an income tax credit for their charitable contributions, effectively reducing their tax liability.
Who Might Suffer?
The primary group negatively impacted by this bill is the State of Arkansas's general revenue fund, which will experience a reduction in tax collections due to the $75 million annual tax credit cap. Additionally, taxpayers who do not make contributions to these specific organizations may bear a larger relative share of the tax burden, as the state's overall tax revenue is reduced without a corresponding decrease in state spending requirements. Administrative entities, specifically the Department of Health and the Department of Finance and Administration, will face increased operational burdens to oversee, monitor, and regulate the new program.
Get Notified
Receive an email when this bill's status changes.