SB576 Summary

• Provides a one-year income tax deduction for the tax year beginning in calendar year 2012 to qualified Alabama Medicaid providers equal to 15% of Medicaid payments received in excess of $10,000.

• Limits eligibility to providers receiving less than $1,000,000 in annual Medicaid payments and enrolled as specific provider types including Home Health Agencies, nurses, mental health providers, therapists, dentists, physicians, and other healthcare professionals, excluding providers employed by public facilities.

• Deduction is available only to individuals who elect not to take the optional standard deduction and applies without regard to certain income limitations.

• Act becomes effective only if the Alabama Medicaid Agency enacts an administrative code change in calendar year 2012 to reduce Medicaid provider rates below fiscal year 2011 levels.

• Becomes effective upon passage and approval by the Governor or otherwise becoming law.