SB245 • 2026

Income Taxes, tax deduction for members of a Health Care Sharing Ministry for certain health care sharing expenses

Education Healthcare Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Roberts
Last action: 2026-04-07
Official status: Indefinitely Postponed in House of Origin
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details about the implementation date or rules for claiming the deduction, other than requiring the Department of Revenue to adopt them.

Health Care Sharing Ministries Tax Deduction

This bill allows members of Health Care Sharing Ministries to deduct certain health care sharing expenses from their income taxes.

What This Bill Does

Creates a new tax deduction for members of Health Care Sharing Ministries.
Defines 'Health Care Sharing Ministry' as specified in Alabama law.
Specifies that qualified individuals can deduct contributions made to these ministries from their income taxes starting January 1, 2027.
Requires the Department of Revenue to adopt rules for implementing and administering this tax deduction.

Who It Names or Affects

Members of Health Care Sharing Ministries in Alabama.
The Alabama Department of Revenue.

Terms To Know

Health Care Sharing Ministry: A group that shares medical expenses among its members, as defined by Alabama law.
Qualified Health Care Sharing Expenses: Contributions made by a qualified individual to a health care sharing ministry.

Limits and Unknowns

The bill does not specify the exact amount of the deduction.
It is currently indefinitely postponed and has not yet become law.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

7BWJXEV-1

Finance and Taxation Education

Finance and Taxation Education 1st Amendment

Plain English: 7BWJXEV-1 : 3/4/2026 : TEW 1ST FINANCE AND TAXATION EDUCATION AMENDMENT TO SB245 OFFERED BY SENATOR ORR Page 1 Replace line 36 on page 2 with the following: January 1, 2027, and ending on December 31, 2029, a qualified individual is entitled to a 1 2 3 4 5 6 7

7BWJXEV-1 : 3/4/2026 : TEW 1ST FINANCE AND TAXATION EDUCATION AMENDMENT TO SB245 OFFERED BY SENATOR ORR Page 1 Replace line 36 on page 2 with the following: January 1, 2027, and ending on December 31, 2029, a qualified individual is entitled to a 1 2 3 4 5 6 7

This amendment summary is using official source text because generated interpretation was skipped for this run.

Bill History

2026-04-07 Senate
Currently Indefinitely Postponed
2026-03-05 Senate
Read for the Second Time and placed on the Calendar
2026-03-04 Senate
Reported Out of Committee House of Origin
2026-03-04 Senate
Finance and Taxation Education 1st Amendment
2026-02-10 Senate
Re-referred to Committee in House of Origin
2026-02-10 Senate
Read for the Second Time and placed on the Calendar
2026-02-03 Senate
Pending Committee Action in House of Origin
2026-02-03 Senate
Read for the first time and referred to the Senate Committee on Healthcare

Official Summary Text

Income Taxes, tax deduction for members of a Health Care Sharing Ministry for certain health care sharing expenses

Current Bill Text

Read the full stored bill text

SB245 INTRODUCED
Page 0
SB245
L5CMUWA-1
By Senators Roberts, Shelnutt, Orr, Allen
RFD: Healthcare
First Read: 03-Feb-26
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L5CMUWA-1 11/18/2025 TEW (F)TEW 2025-2749
Page 1
First Read: 03-Feb-26
SYNOPSIS:
Under existing law, income tax deductions are
allowed for health insurance premiums and health
savings accounts.
This bill would allow Health Care Sharing
Ministries to take advantage of the same tax benefits
allowed for health insurance premiums and health
savings accounts.
A BILL
TO BE ENTITLED
AN ACT
Relating to income taxes; to establish the Health Care
Sharing Ministries Tax Parity Act; to allow qualified
individuals to claim an income tax deduction for certain
qualified health care sharing expenses.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Health Care Sharing Ministries Tax Parity Act.
Section 2. For the purposes of this act, the following
terms have the following meanings:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) HEALTH CARE SHARING MINISTRY. As defined in Section
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SB245 INTRODUCED
Page 2
(2) HEALTH CARE SHARING MINISTRY. As defined in Section
22-6A-2, Code of Alabama 1975.
(3) QUALIFIED HEALTH CARE SHARING EXPENSES.
Contributions made by a qualified individual to a health care
sharing ministry.
(4) QUALIFIED INDIVIDUAL. A member of a health care
sharing ministry.
Section 3. (a) For tax years beginning on or after
January 1, 2027, a qualified individual is entitled to a
deduction from the qualified individual's adjusted gross
income for the taxable year. The amount of the deduction shall
be equal to the total amount of qualified health care sharing
expenses paid by the qualified individual during the taxable
year.
(b) To receive the deduction allowed by this section, a
qualified individual must claim the deduction on the qualified
individual's annual state tax return or returns in the manner
prescribed by the Alabama Department of Revenue. The qualified
individual shall submit to the department any information the
department determines is necessary to calculate the amount of
the deduction allowed by this section.
(c) Any qualified health care share contribution
received by a taxpayer for medical expenses for which no
deduction against taxable income has been taken shall not be
considered taxable income.
Section 4. The department shall adopt rules to
implement and administer this act.
Section 5. This act shall become effective on October
1, 2026.
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