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HB 1674

TO CREATE AN INCOME TAX CREDIT FOR CONTRIBUTIONS TO CERTAIN RURAL HOSPITAL ORGANIZATIONS; AND TO CREATE THE HELPING ENHANCE ACCESS TO RURAL TREATMENT (HEART) ACT.

2025 Regular Session Introduced by Lee Johnson

HB 1674 aimed to boost rural healthcare by offering tax credits for donations to rural hospitals, enhancing access to services for underserved communities in Arkansas.

WITHDRAWN BY AUTHOR
0
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Bill Summary · HB 1674

Summary of House Bill 1674: Helping Enhance Access to Rural Treatment (HEART) Act

Bill Number: HB 1674
Introduced: March 4, 2025
Status: Withdrawn by Author on April 14, 2025

Purpose and Intent

House Bill 1674 aimed to create an income tax credit for contributions made to certain rural hospital organizations in Arkansas. The bill was designed to enhance access to healthcare services in rural areas by incentivizing donations to hospitals that serve these communities. The legislation was titled the Helping Enhance Access to Rural Treatment (HEART) Act.

Key Provisions

Income Tax Credit

  • The bill proposed an income tax credit for individuals and corporations that contribute to approved rural hospital organizations.
  • The credit amount would be based on the actual contributions made, with specific provisions for different types of taxpayers, including individuals, married couples, and corporate entities.

Definitions

  • Rural Hospital Organization: Defined as a licensed acute care hospital that provides services in a rural county, participates in Medicaid and Medicare, and meets certain financial criteria, including providing care to indigent patients.
  • Critical Access Hospital: A hospital designated by the Centers for Medicare and Medicaid Services as critical access and recognized by the Arkansas Department of Health.

Department of Health Responsibilities

  • The Arkansas Department of Health would be responsible for:
    • Approving a list of eligible rural hospital organizations annually.
    • Creating an operations manual to identify and rank these organizations based on financial need.
    • Compiling and submitting an annual report on contributions and expenditures related to the program.

Contribution Requirements

  • Rural hospital organizations would be required to submit a five-year financial viability plan to be eligible for the tax credit.
  • Contributions received must be used for healthcare services for residents of rural counties or areas served by critical access hospitals.

Impact

The proposed legislation aimed to:
- Increase financial support for rural hospitals, which often face economic challenges.
- Improve healthcare access for residents in rural areas of Arkansas.
- Encourage community and corporate involvement in supporting local healthcare facilities.

Procedural Aspects

  • The bill was filed and read for the first time on March 4, 2025, and was referred to the House Committee on Revenue & Taxation.
  • It was withdrawn by the author on April 14, 2025, before any further legislative action could take place.

Conclusion

While HB 1674 was intended to provide significant support for rural healthcare through tax incentives, its withdrawal means that the proposed measures will not be enacted in the current legislative session. The need for enhanced access to healthcare in rural areas remains a critical issue, and future legislative efforts may address this concern.

Compiled from official sources — confirm details with the bill’s official record.

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