SB79 Summary

• Increases the maximum income tax credit duration for rural physicians from 5 consecutive years to 10 consecutive years, effective beginning with the 2019 tax year.

• Extends the $5,000 annual state income tax credit to rural dentists who practice and reside in small rural communities with at least 20 hours per week of practice, beginning with the 2019 tax year.

• Raises the population threshold for qualifying "small or rural communities" from 25,000 to 35,000 residents according to the latest decennial census.

• Requires Alabama Department of Public Health to issue certificates to qualifying physicians and dentists, who must attach them to tax returns to claim the credit.

• Applies to newly qualifying physicians and dentists starting in 2019; physicians receiving credits under the previous 5-year program may transition to the 10-year program if eligible.