AL HB74

Limits the income tax credit for qualifying rural physicians to a maximum of five total tax years (beginning January 1, 2016).

Defines a rural physician as one licensed to practice medicine in Alabama who practices and resides in a small or rural community county with fewer than 25,000 residents and has admission privileges to a qualifying hospital.

Defines a qualifying small or rural hospital as an acute care facility with fewer than 105 beds located more than 20 miles from another acute care hospital, or one that receives Medicare rural reimbursement from the federal government.

Allows eligible rural physicians a $5,000 annual tax credit against state income tax, with eligibility requirements including having practiced in urban/large communities for at least three years before returning to rural practice.

Becomes effective on the first day of the third month following passage and approval by the Governor.