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Alabama lawmakers working to help rural hospitals, patients with proposed tax credit program

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Alabama lawmakers working to help rural hospitals and patients with proposed tax credit program

The Rural Hospital Investment Program would create a tax credit program that gives community members and businesses opportunities to reduce their state income tax liability.

Your access to health care may be in jeopardy.

Right now, Alabamians in rural areas often drive miles to get the health care they need.

Experts like Danne Howard with the say smaller hospitals just don't have the means to help every patient.

"The need is large," explained Howard. "This could truly make a significant difference for any number of rural hospitals in the state."

That need is causing some state lawmakers to say enough is enough as they hope a new bill will fix this problem.

State Rep. Terri Collins of Decatur sponsors .

The legislation would create a tax credit program that gives you and businesses opportunities to reduce state income tax liability.

It does this through donations to rural hospitals.

That means for every dollar donated, the donor could reduce what they owe in state income tax by up to $15,000 a year.

However, Collins says not all want to see this bill become law.

"The education community came out in full opposition because of the hit it would make potentially to the Education Trust Fund," Collins said.

Collins says that fund supports Alabama schools and it thrives on income and sales tax.

She says the education community worries the tax credit will take money from education.

Yet, Collins is working on a compromise as she says they all share the same goal.

"Health care is one of those areas like education that is important to a growing and thriving area and state," said Collins. "And they need help making sure that they can stay open."

Similarly, Howard knows this bill won't fix every issue, but she's hoping it will make a major difference. 

"It does not necessarily mean a big expansion of a facility, but it might mean having the financial resources to upgrade or repair equipment," Howard said.

Collins hopes to move this legislation out of committee and keep the conversation going.

She wants to get folks affordable health care and says big changes to the bill will come this week.

Legislators plan to vote on the bill April 1.

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Reporter

Jillian Kay is a Southern California native and a proud graduate of Emerson College in Boston, where she earned a bachelor's degree in broadcast journalism with a minor in comedy writing and performance.

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