SB374 Summary

• Terminates existing rural physician income tax credit for tax years ending after December 31, 2019, while grandfathering physicians who claimed the credit prior to that date until their eligibility expires.

• Creates new rural physician income tax credit effective for tax years beginning January 1, 2020, providing $5,000 annual credit for physicians practicing at least 30 hours per week in rural communities (non-urbanized areas).

• Extends credit eligibility from five to six consecutive tax years and removes requirement for hospital privileges in rural hospitals.

• Prohibits physicians already practicing in rural communities on the effective date from claiming the new credit, and requires three-year absence from rural practice before physicians can resume claiming the credit.

• Requires Department of Public Health to certify eligible physicians and issue certificates that must be attached to tax returns; Department of Revenue to promulgate implementing rules and Department of Public Health to file annual informational reports.