SB195 Summary

• Terminates the existing rural physician income tax credit of $5,000 per year (for five years) effective December 31, 2020, but allows physicians claiming the credit in 2020 to continue under the remaining credit period available under prior law.

• Creates a new rural dentist and rural physician income tax credit effective for tax years beginning after January 1, 2021, providing $5,000 per year for up to five consecutive tax years to qualifying practitioners.

• Defines rural community as a rural area meeting federal criteria under 42 C.F.R. 491.5(c), removing the requirement that a rural community have a rural hospital.

• Requires rural physicians and dentists to practice at least 20 hours per week in a rural community and to reside in that community to qualify for the credit.

• Requires the State Board of Medical Examiners and State Board of Dental Examiners to issue certificates to qualifying physicians and dentists before they can claim the tax credit on their income tax returns.