Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-18-558

Statewide Annual Aggregate of Tax Credit Amounts; Contribution Limits

Official textalison.legislature.state.al.us

# (a)

The statewide annual aggregate of the tax credit allowed for qualified donations shall not exceed the following amounts:

# (1)

Twenty million dollars ($20,000,000) in the tax year ending December 31, 2026.

# (2)

Twenty-five million dollars ($25,000,000) in the tax year ending December 31, 2027.

# (3)

Thirty million dollars ($30,000,000) for all subsequent tax years.

# (b)

No more than seven hundred fifty thousand dollars ($750,000) shall be contributed to any eligible rural hospital in the tax year ending December 31, 2026; one million dollars ($1,000,000) for the tax year ending on December 31, 2027; and one million two hundred fifty thousand dollars ($1,250,000) each year thereafter, to be limited by the annual aggregate amount applicable in subsection (a).

# (c)

In the event a qualified donor desires to make a contribution to an individual eligible rural hospital that has received the maximum amount of contributions for that year, the donor shall be provided, upon request to the board, the published list of eligible rural hospitals that are still eligible to receive contributions that year.

# (d)

In the event a qualified donor desires to make a contribution to an individual eligible rural hospital that exceeds the maximum amount allowed for that year, the department shall not deny the desired contribution but shall approve the proportional amount of the desired contribution up to the eligible rural hospital’s maximum amount of contributions for that year and any remainder shall be attributed to an eligible rural hospital according to the ranking as published under Section 40-18-554(1) which has not yet received the maximum amount of contributions for that year.

# (e)

In the event that a qualified donor desires to make a contribution to an unspecified or undesignated rural hospital, the donation shall be attributed to the eligible rural hospital according to the ranking as published under Section 40-18-554(1) which has not yet received the maximum amount of contributions for that year, regardless of whether a third party has a relationship or agreement with any eligible rural hospital.

# (f)

The department shall preapprove each qualified donation for compliance with each applicable limit in subsections (a) and (b).

Last amended: Act 2025-404, §9.

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