AZ HB2636

Creates a state income tax credit for health care providers who practice in rural areas and federally designated health professional shortage areas in Arizona beginning in taxable year 2022.

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 per year depending on provider type and hours worked at practice site (full credit requires 2,080 hours; reduced credit requires 1,040-2,079 hours).

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

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