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 those operating as pregnancy centers, state-licensed mobile medical clinics, or 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 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 a credit of up to 50% of their state income tax liability for contributions made during the taxable year.

Additionally, the bill stipulates that contributions for which a credit is claimed cannot be deducted for state income tax purposes, and the tax credits cannot be transferred to other taxpayers. The Department of Revenue is tasked with reviewing certifications from eligible organizations, maintaining a public list of these organizations, and allocating credits based on contributions made. 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 tax credits will be effective starting January 1, 2025, and will remain in effect through the 2029 tax year unless extended by the legislature.