HB1404
To Create A Tax Credit For Contributions To A Pregnancy Resource Center.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1404 proposes the creation of a state income tax credit for taxpayers who make contributions to qualifying pregnancy resource centers in Arkansas. Under the bill, taxpayers can claim a tax credit equal to 50% of the total amount of contributions made to these centers during a tax year, provided the credit does not exceed the total income tax liability of the taxpayer. To qualify as a pregnancy resource center for the purposes of this bill, an organization must focus on encouraging pregnant women to carry their pregnancies to birth and must not perform, prescribe, refer for, or encourage abortions. Additionally, the bill prohibits taxpayers from claiming these contributions as a tax deduction if they are also claiming the income tax credit. The Department of Finance and Administration is authorized to promulgate rules to implement the credit, which would be effective for tax years beginning on or after January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include donors who contribute to pregnancy resource centers, as they would receive a significant tax credit for their donations, and the pregnancy resource centers themselves, which may see an increase in financial support from individuals seeking to lower their tax burden. Pregnant individuals who utilize the services provided by these centers—such as counseling or support for carrying pregnancies to term—also benefit from the increased funding available to these organizations.
Who Might Suffer?
The primary negative impact is the reduction in state tax revenue, which could theoretically affect the state budget and the funding of public services. Additionally, organizations or individuals that support abortion access may feel negatively impacted as this legislation provides financial incentives that explicitly favor organizations that do not provide or refer for abortions, potentially creating an uneven landscape for reproductive health service providers.
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