HB46 Summary

• Terminates the existing Rural Physician Tax Credit (Division 1) effective December 31, 2025, with no reduction to credits already awarded.

• Establishes a new Rural Physician Tax Credit (Division 2) for tax years beginning January 1, 2026, through December 31, 2030, providing a $10,000 annual credit claimable for up to four tax years.

• Defines rural physician as a physician licensed in Alabama who both lives and practices medicine in a rural community (municipality with population of 20,000 or less, or unincorporated county area).

• Requires physicians to obtain certification from the Alabama Statewide Area Health Education Center Program Office in consultation with the State Board of Medical Examiners before claiming the credit.

• Repeals Sections 40-18-130 through 40-18-133 effective December 31, 2030, and directs the Alabama Commission on the Evaluation of Services to assess program effectiveness during the 2030 fiscal year.