CA AB2514

Allows a tax credit for qualified health care professionals (dentists, physicians, physician assistants, advanced practice nurses) who reside and practice in rural health care professional shortage areas for taxable years beginning January 1, 2015 through December 31, 2019.

Credit amount equals the student loan payments made during the taxable year, not to exceed one-third of the remaining student loan balance as of January 1 of that year, and may be claimed for up to five consecutive taxable years.

Requires qualified taxpayers to have a commitment agreement with the State Department of Health Care Services to reside and practice in the shortage area for at least three to five years, and prohibits delinquency on student loan payments.

If the taxpayer ceases to reside and practice in the shortage area or pays off the loan through another repayment program, the tax for that year increases by the amount of credit previously allowed and any unused credit is forfeited.

Excess credits that exceed the tax liability in a given year may be carried over to reduce taxes in the following five taxable years.