SB576 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: William “Bill” M. BeasleySenator
Democrat
Co-Sponsor: Arthur Orr
Session: Regular Session 2012
Title: Taxation, one year income tax deduction for Medicaid providers authorized contingent upon rule change by Alabama Medicaid Agency
Summary: SB576 would provide a one-year, 15% income tax deduction on Medicaid payments above $10,000 for certain Alabama Medicaid providers, contingent on Alabama Medicaid Agency rate reductions below 2011 levels.
What This Bill Does
For tax year 2012, the bill would allow a qualified Alabama Medicaid provider to deduct 15% of Medicaid payments received over $10,000 from Alabama Medicaid Agency. The deduction is in addition to other deductions and is available only to providers who elect not to take the optional standard deduction. Eligible providers are those with annual Medicaid payments under $1,000,000 and enrolled in specific Medicaid provider types; providers employed by public facilities are excluded. The act would take effect only if the Medicaid Agency enacts a code change in 2012 to reduce rates below 2011 levels.

Who It Affects
Qualified Alabama Medicaid providers (those receiving less than $1,000,000 in annual Alabama Medicaid payments and enrolled in the listed provider types) would receive a 15% deduction on Medicaid payments above $10,000 for the 2012 tax year.
Providers employed by public facilities are excluded and therefore not eligible for the deduction.

Key Provisions
Provides a one-year deduction for tax year 2012 equal to 15% of Medicaid payments above $10,000 received from the Alabama Medicaid Agency for eligible providers.
Eligibility requires annual Medicaid payments under $1,000,000 and enrollment in specified Medicaid provider types (e.g., Home Health Agency, Physician, Dentist, etc.); excludes those employed by public facilities as defined by CMS cost reports.
The deduction is in addition to other income tax deductions and is available only to taxpayers who elect not to take the optional standard deduction.
Effective only if the Alabama Medicaid Agency enacts an administrative code change in 2012 to reduce Medicaid payment rates below 2011 levels.
The act becomes effective upon passage and is severable; conflicting laws are repealed to the extent of conflict.

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