The Alabama Hospital Investment Program provides a dollar-for-dollar tax credit against state income and other taxes for individuals and businesses that donate to eligible rural hospitals in Alabama.
The Program was established by statute and is available for the tax years from 2026 – 2028. It is intended to help eligible rural hospitals receive additional funding as many rural hospitals in Alabama and other states are at risk of closure. To be eligible, hospitals must be located in a federally designated rural area, serve Medicare, Medicaid and indigent patients, and submit a five-year financial plan.
Donors receive a 100% tax credit of up to $15,000 for individuals filing single tax returns or married individuals filing separately. Married couples filing jointly can receive a tax credit of up to $30,000 and corporations can receive a tax credit of the lesser of 100% of their donation or 75% of their income tax liability, up to $500,000.
The Program will be administered by the Rural Hospital Investment Program Board within the Office of the State Treasurer.
Additional information on the Program can be found here: https://www.revenue.alabama.gov/tax-incentives/rural-hospital-investment-tax-credit/