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AL SB277
Bill
Status
5/2/2023
Primary Sponsor
Robert Stewart
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 claiming it through the full five-year period under prior law.
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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 newly qualifying rural physicians, with the program running 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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Prohibits physicians who previously claimed the old rural physician tax credit or who practiced in rural communities before January 1, 2024 from claiming the new credit, unless they return after at least three years of practice elsewhere.
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Requires the State Board of Medical Examiners to issue certificates to qualifying physicians and submit annual reports to the Department of Revenue; certificates must be submitted with tax returns or the credit is automatically denied.
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
Introduced and Referred to Senate Finance and Taxation Education
5/2/2023