HB519 Summary

• Terminates the existing rural physician income tax credit effective for tax years ending after December 31, 2022, but allows physicians claiming the credit for tax year 2022 to continue claiming it for the remainder of their five-year eligibility period.

• Establishes a new rural physician income tax credit of $5,000 per year for up to five consecutive years, effective for tax years beginning January 1, 2023, for newly qualifying rural physicians.

• Defines "rural community" as a rural area meeting federal criteria under 42 C.F.R. 491.5(c) and removes the requirement for hospital privileges, instead requiring physicians to both live and practice in a rural community.

• Prohibits physicians who previously claimed the old credit from claiming the new credit, and bars physicians who practiced in rural areas prior to January 1, 2023 from the new credit unless they return after three years of practicing outside rural Alabama.

• Requires the State Board of Medical Examiners to certify physicians' eligibility and issue certificates prior to claiming the credit, with the Department of Revenue to file annual informational reports on credit recipients.