SB515 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Arthur OrrSenator
Republican
Session: Regular Session 2011
Title: Taxation, one year income tax deduction for Medicaid providers authorized contingent upon rule change by Alabama Medicaid Agency
Summary: SB515 would create a one-year income tax deduction for a portion of Medicaid payments to certain Alabama Medicaid providers, contingent on a rule change by the Alabama Medicaid Agency.
What This Bill Does
If enacted, qualified Alabama Medicaid providers could deduct 10% of Medicaid payments over $10,000 received from the Alabama Medicaid Agency during the 2011 tax year. Eligibility is limited to providers who receive less than $1,000,000 in annual Alabama Medicaid payments and who are enrolled as one of the specified provider types. Providers employed by public facilities would not be eligible. The deduction is available only to taxpayers who elect not to take the optional standard deduction and is contingent on the Medicaid Agency enacting a code change to reduce rates below 2010 levels.

Who It Affects
Qualified Alabama Medicaid providers (those with under $1,000,000 in annual Medicaid payments and enrolled in the listed provider types) would be able to claim the deduction on their 2011 income tax.
Providers employed by public facilities would not be eligible for the deduction.
Taxpayers who are qualified Medicaid providers and elect not to take the optional standard deduction would be able to use this deduction.

Key Provisions
Adds a one-year income tax deduction for 2011 equal to 10% of Medicaid payments over $10,000 received from the Alabama Medicaid Agency for each qualified provider.
Defines a qualified Alabama Medicaid provider as one receiving less than $1,000,000 in annual Alabama Medicaid payments and enrolled in provider types such as Home Health Agency (05), Advanced Nurse Practitioner (09), Mid-Level Practitioner (10), Mental Health Provider (11), Podiatrist (14), Therapist (17), Optometrist (18), Optician (19), Audiologist (20), Hearing Aid Dealer (22), DME Providers (25), Dentist (27), Laboratory (28), Xray clinic (29), Physician (31), Private Duty Nurse (52), Psychologist (54), CRS Physician (57), Oral Surgeon (62), Early Rehab Intervention (63).
Excludes providers employed by public facilities identified in CMS Form 2552-96 or its successors.
Deduction is available only to those who elect not to take the optional standard deduction and is not limited by paragraph (23) of Section 40-18-15(a).
The act becomes effective only if the Alabama Medicaid Agency enacts an administrative code change in 2011 to reduce rates paid to qualifying providers below fiscal year 2010 levels.
The provisions are severable; if any part is invalid, the rest remains in effect.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation