SB374 Alabama 2019 Session

Under existing law, a physician who qualifies as a rural physician in a small or rural community is entitles to a tax credit of $5,000 each year for five years

This bill would terminate the existing rural physician income tax credit effective for any tax year ending on or before December 31, 2019, and would grandfather in physicians claiming the credit prior to that date

This bill would further provide a new rural physicians income tax credit effective for tax year beginning after January 1, 2020. The bill would define practices, rural physician, and rural community. A rural community would be defined as a community that is not located in an urbanized area

The bill would require a rural physician to practice at least 30 hours per week in a rural community

The bill would also extend the tax credit to six years and would require the Department of Public Health to issue certificates to physicians who qualify for the tax credit

Relating to state income tax credits for rural physicians; to terminate the income tax credit authorized for a rural physician under Article 4A of Chapter 18, Title 40, Code of Alabama 1975, composed of Sections 40-18-130, 40-18-131, and 40-18-132, Code of Alabama 1975, and to provide that any physician who claimed the exemption or claims the exemption under Article 4A for any tax year prior to December 31, 2019, may continue to claim the exemption under Article 4A until the credit authorized for that physician expires; to add Article 4A.1 to Chapter 18, Title 40, commencing with Section 40-18-130.1, Code of Alabama 1975, to further provide for a rural physician income tax credit; to provide definitions; to modify the requirement for residence and practice in a rural community; to remove the requirement for hospital privileges in a rural hospital; to increase the number of years the income tax credit is granted; and to require the Department of Public Health to certify physicians who qualify for the income tax credit.