HB1404
To Create A Tax Credit For Contributions To A Pregnancy Resource Center.
AI-Generated Summary
This bill proposes to create an income tax credit for individuals in Arkansas who make contributions to designated "pregnancy resource centers." A pregnancy resource center is defined as an organization that aims to encourage pregnant women to carry their pregnancies to term and does not perform, prescribe, encourage, or refer for abortions, nor affiliate with organizations that do. Taxpayers would be eligible for a credit equal to fifty percent (50%) of the total amount contributed to such a center during a tax year. This credit cannot exceed the amount of income tax the taxpayer owes. Contributions for which a credit is claimed cannot be deducted for other tax purposes. The Department of Finance and Administration is empowered to create rules for implementation. The act is set to take effect for tax years beginning on or after January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be pregnancy resource centers that meet the specified criteria. By offering a tax credit to donors, the bill aims to incentivize individuals to contribute financially to these organizations, thereby increasing their funding. The individuals who donate to these centers would also directly benefit through a reduction in their income tax liability. Ultimately, the intended beneficiaries are the pregnant individuals and their unborn children whom these centers aim to serve.
Who Might Suffer?
The state's general fund revenue would likely be negatively impacted due to the reduction in tax collections resulting from the new income tax credit. Taxpayers who do not contribute to pregnancy resource centers would not directly benefit from this specific tax credit, but their tax burden would not increase as a result of this bill. Organizations that provide or refer for abortions, or that are affiliated with such entities, would not be eligible to receive contributions that qualify for this tax credit, potentially impacting their fundraising efforts if donors choose to redirect funds to qualifying pregnancy resource centers.