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AL HB283
Bill
Status
4/11/2023
Primary Sponsor
Ed Oliver
Click for details
AI Summary
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Terminates the existing rural physician income tax credit of $5,000 per year for five years effective for tax years ending after December 31, 2023, but allows physicians claiming the credit for tax year 2023 to continue under prior law through their five-year credit period.
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Establishes a new rural physician income tax credit effective January 1, 2024, providing $5,000 per tax year for up to five years to physicians newly qualifying as rural physicians, with the program authorized through December 31, 2028 unless extended by the Legislature.
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Defines "rural community" as an area within a county with 50,000 or fewer inhabitants that is either a municipality with 15,000 or fewer inhabitants or the unincorporated area of the county, based on the most recent federal decennial census.
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Restricts the new credit to physicians who have not previously claimed the rural physician tax credit and who did not practice in a rural community before January 1, 2024, unless they spent at least three years practicing in a large or urban community or outside Alabama before returning.
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Requires the State Board of Medical Examiners to certify qualifying physicians and issue certificates before the credit can be claimed, and mandates both the board and Department of Revenue to submit annual informational reports on credit recipients.
Legislative Description
Relating to state income tax credits for rural physicians; to designate Sections 40-18-130, 40-18-131, and 40-18-132, Code of Alabama 1975, as Division 1 of Article 4A of Chapter 18 of Title 40, Code of Alabama 1975; to terminate the income tax credit authorized for a rural physician under the existing Article 4A of Chapter 18, Title 40, Code of Alabama 1975, effective December 31, 2023; to provide that any physician who claimed the credit or claims the credit under the existing Article 4A for the tax year ending on December 31, 2023, would be authorized to continue to claim the credit under the prior law until the credit period authorized under the prior law for that physician expires; to add Division 2 to Article 4A of Chapter 18, Title 40, Code of Alabama 1975, to further provide for a rural physician income tax credit; to provide definitions; to modify the requirement for residence and practice in a rural community; to remove the requirement for hospital privileges in a rural community; and to require the State Board of Medical Examiners to certify physicians who qualify for the income tax credit.
Last Action
Indefinitely Postpone
5/31/2023