HB1674
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Last Action (March 4, 2025): WITHDRAWN BY AUTHOR
Sponsors
AI-Generated Summary
House Bill 1674, titled the 'Helping Enhance Access to Rural Treatment (HEART) Act,' establishes an income tax credit for contributions made to qualifying rural hospital organizations in Arkansas. To qualify, hospitals must meet specific criteria, including being located in a rural county or designated as a critical access hospital, serving indigent patients, and maintaining financial transparency. The Department of Health is tasked with ranking these organizations based on financial need, maintaining a list of eligible hospitals, and providing oversight through reporting requirements. Individual taxpayers can claim a credit equal to their actual contribution up to specified caps, while corporations may claim a credit up to 75% of their tax liability. The legislation sets an aggregate annual cap of $75 million on these tax credits and limits individual hospital receipts to $4 million annually. Taxpayers must receive preapproval from the Department of Finance and Administration before making contributions. The bill aims to incentivize private funding for rural healthcare infrastructure and operations to ensure continued service availability in underserved areas.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are rural hospital organizations that qualify for the tax credit, as they will receive increased funding and financial support to maintain operations, serve indigent populations, and improve healthcare infrastructure. Additionally, residents of rural Arkansas counties and those served by critical access hospitals benefit from the potential stabilization and improved access to essential medical services. Individual and corporate taxpayers who wish to support these hospitals also benefit by receiving a dollar-for-dollar (or percentage-based) offset against their state income tax liabilities.
Who Might Suffer?
The primary group negatively impacted 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 contribute to these organizations may be indirectly impacted if the state needs to offset the lost tax revenue through budget adjustments elsewhere. Third-party solicitors or administrative organizations managing these donations face increased compliance burdens and a statutory limit on the fees (three percent) they can charge for their services.
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