AL HB291

Repeals existing rural physician income tax credit effective December 31, 2024, which provided $5,000 annually for five years.

Establishes new rural physician income tax credit effective January 1, 2025, providing $10,000 per tax year for up to four years unless extended by the Legislature.

Defines "rural community" as areas within counties with 50,000 or fewer inhabitants, including municipalities with 20,000 or fewer residents or unincorporated county areas.

Requires physicians to live and practice medicine in a rural community, with new physicians prohibited from claiming credit if they previously practiced in rural areas unless they spent at least three years practicing elsewhere first.

Transfers program administration to Alabama Statewide Area Health Education Center Program Office, which must verify physician eligibility and issue certificates required to claim the credit.