SB78 Summary

• Amends Section 40-18-132, Code of Alabama 1975, to expand the existing state income tax credit for rural physicians to include dentists.

• Beginning with the 2016 tax year, rural physicians and dentists who reside in the rural community where they practice are allowed a $10,000 annual tax credit against state income tax.

• The tax credit may be claimed for 10 consecutive years, replacing the previous 5-year limit under existing law.

• Maintains existing restrictions that prohibit credits for physicians already practicing in rural communities as of May 4, 1993, unless they return after at least 3 years of practice in urban areas.

• Becomes effective immediately upon passage and approval by the Governor.