SB 228 Summary

• Terminates the existing rural physician income tax credit effective for tax years ending after December 31, 2020, but allows physicians who claimed it for the 2021 tax year to continue claiming it through the remainder of their original five-year credit period.

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

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

• Requires rural physicians and dentists to practice at least 20 hours per week and reside in a rural community, and mandates that the State Board of Medical Examiners and State Board of Dental Examiners issue certificates to qualifying applicants before they can claim the credit.

• Prohibits physicians or dentists who previously practiced in rural communities from claiming the credit unless they have practiced outside rural communities or outside Alabama for at least three years, except for those transitioning from the prior program.