HB285 Summary

• Terminates the existing rural physician income tax credit effective for tax years ending after December 31, 2019, but grandfathers in physicians who claimed the credit prior to that date.

• Establishes a new rural physician income tax credit for tax years beginning after January 1, 2020, providing $10,000 annually for physicians who live and practice in rural communities, or $5,000 annually for those who only practice there.

• Requires rural physicians to practice at least 30 hours per week in a community not located in an urbanized area and removes the previous requirement for hospital privileges.

• Extends the credit duration from five to seven consecutive tax years and requires Department of Public Health certification before claiming the credit on tax returns.

• Makes the new credit effective through the 2023 tax year unless extended by the Legislature, with physicians claiming the credit prior to December 31, 2023, permitted to continue until their eligibility period expires.