AL SB515

Allows qualified Alabama Medicaid providers a one-year income tax deduction equal to 10% of Medicaid payments received in excess of $10,000 for the tax year beginning in calendar year 2011.

Defines qualified providers as those receiving less than $1,000,000 in annual Medicaid payments and enrolled as specific provider types including home health agencies, nurses, physicians, dentists, therapists, and other healthcare professionals.

Excludes providers employed by public facilities whose costs are identified on CMS Form 2552-96 cost report Worksheet A-8-2, Column 4, as specified in State Plan Amendment 09-005.

Deduction applies only to individuals electing not to take the standard deduction and is allowed without regard to other specified income tax limitations.

Becomes effective only if the Alabama Medicaid Agency enacts an administrative code change in 2011 to reduce rates paid to qualifying providers below fiscal year 2010 levels for fiscal year 2012.