The proposed legislation, known as the "Pregnancy Resource Act," aims to establish a state income tax credit for individuals and businesses that contribute to eligible charitable organizations, specifically pregnancy centers, state-licensed mobile medical clinics, and residential maternity facilities. The bill defines "eligible charitable organization" and outlines the criteria these organizations must meet, including being a 501(c)(3) nonprofit, providing specific services to assist women in carrying pregnancies to term, and maintaining a physical presence in Alabama. The tax credit will be available to individual taxpayers and business enterprises, allowing them to claim up to 50% of their state income tax liability for contributions made during the taxable year, with unused credits eligible to be carried forward for five years.

Additionally, the bill stipulates that contributions for which a tax credit is claimed cannot be deducted from state income taxes, and the credits cannot be transferred to other taxpayers. The Department of Revenue is tasked with overseeing the implementation of the act, including reviewing certifications from eligible organizations and maintaining a public list of these organizations. The total amount of tax credits allocated in a calendar year is capped at $10 million, with no more than 50% of that amount going to a single organization. The provisions of the act will take effect on January 1, 2025, and will remain in effect through the 2029 tax year unless extended by the legislature.