AZ SB1342

Allows a tax credit for qualified health care providers who practice in rural areas and federally designated health professional shortage areas in Arizona during the entire taxable year.

Eligible providers include physicians, dentists, clinical psychologists, podiatrists, optometrists, dental hygienists, physician assistants, certified nurse midwives, and certified registered nurse anesthetists.

Credit amounts range from $1,500 to $5,000 depending on provider type and hours worked, with $5,000 available for physicians, dentists, and similar professionals working at least 2,080 hours annually.

Requires eligible taxpayers to obtain a certificate from the Department of Health Services before claiming the credit and submit it with their income tax return.

Allows unused credits to be carried forward for up to three consecutive taxable years if the credit exceeds taxes owed.