IL HB3216

Creates a $5,000 income tax credit for qualified physicians working in underserved areas, rural counties, or rural municipalities in Illinois, effective for taxable years beginning January 1, 2026

Qualified physicians must be licensed in Illinois, in good standing with the Illinois State Medical Board, and have no more than 3 medical malpractice judgments or settlements in the preceding 4 years

Physicians must work at a hospital, health clinic, or as an independent physician and provide health care services to at least 10 patients during the taxable year

Rural county is defined as a county designated by the Department of Public Health's Center for Rural Health that is outside a metropolitan area or in a metropolitan area with fewer than 60,000 persons; rural municipality means a municipality with 5,000 or fewer residents

The credit cannot reduce tax liability below zero and unused credit amounts cannot be carried forward or backward to other tax years