HB70 Alabama 2012 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2012

Title

Income tax, Medicaid receipients, physician and dentists providing free service to, tax credit, contingent on federal income tax credit being enacted

Summary

HB70 would create a state income tax credit for physicians and dentists who provide free Medicaid services, but only if a federal tax credit is enacted, with the Alabama credit equal to 35% of the federal amount.

What This Bill Does

The bill establishes a Alabama income tax credit for qualified physicians and dentists who provide free Medicaid services to Medicaid recipients. The credit is available only if the federal government enacts a comparable federal credit, and Alabama's credit would equal 35% of the federal credit amount. Providers cannot claim this credit if they also claim a deduction for the same free Medicaid services. The Department of Revenue would set rules and work with the Alabama Medicaid Agency to implement the program, and the credit would take effect in the first tax year after federal enactment.

Who It Affects

• Qualified physicians and qualified dentists who provide free Medicaid services to Medicaid recipients would be eligible for a state income tax credit (35% of the federal credit amount) and must not claim a deduction for the same services.
• Medicaid recipients in Alabama would be affected indirectly, as the policy is designed to encourage more providers to treat Medicaid patients and expand access to free services.

Key Provisions

• Establishes a state income tax credit for qualified physicians and qualified dentists who provide free Medicaid services to Medicaid recipients.
• Credits are contingent upon the federal government enacting a comparable federal tax credit and equal 35% of the federal credit amount.
• No Alabama credit is allowed if the provider claims a deduction for the free Medicaid services.
• The Department of Revenue shall promulgate rules and coordinate with the Alabama Medicaid Agency to implement procedures for administering the credit.
• The act is severable, so if part of it is invalid, the rest remains in effect.
• The act becomes effective immediately upon passage, with the credit taking effect in the first tax year after federal enactment of the federal credit.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation