The bill, known as the "Pregnancy Resource Act," aims to establish a state income tax credit for individuals and businesses that make voluntary cash contributions to eligible charitable organizations. These organizations include pregnancy centers, state-licensed mobile medical clinics serving women, or residential maternity facilities that provide assistance to women to carry their pregnancies to term, encourage parenting or adoption, prevent abortion, and promote healthy childbirth. The tax credit is limited to 50 percent of the taxpayer's total state income tax liability and can be carried forward for five consecutive years if not fully utilized in the year earned. Contributions used for this tax credit cannot be deducted for state income tax purposes, and the credit is non-transferable.

The Department of Revenue is tasked with implementing the act, which includes reviewing certifications from charitable organizations to ensure they meet the criteria to be considered eligible. The organizations must not provide or promote abortions, must maintain a presence in Alabama, and serve a client base where at least 50 percent are state residents. The total amount of tax credits allocated by the department cannot exceed ten million dollars per calendar year, with no more than 50 percent allocated to a single organization. The act also outlines the process for applying for and allocating credits, as well as the department's authority to enact rules for the act's administration. The tax credits will be effective from January 1, 2025, through the 2029 tax year, subject to extension by the Legislature. The act is set to become effective on January 1, 2025.