AL SB206

Creates the Alabama Physician's Assistants Service Program administered by the Board of Medical Scholarship Awards and funded through direct appropriation from the Education Trust Fund.

Authorizes the Board to award loans to qualified applicants in accredited master's degree programs for physician assistant studies, with loan amounts up to the average in-state tuition and required fees at Alabama public institutions.

Requires loan recipients to sign contracts committing to three years of full-time clinical practice as licensed physician's assistants in designated medically underserved areas of critical need within Alabama.

Imposes penalties for contract default: 30 percent of total loan principal for default before graduation, and 100 percent of total loan principal for default after graduation but before completing the three-year service obligation.

Provides participants with a $5,000 annual state income tax credit against income tax liability for up to 10 total tax years while working in areas of critical need, and allows the Board to excuse repayment upon death, disability, or extreme hardship.