HB41 Alabama 2013 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2013

Title

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

Summary

HB41 would create an Alabama state income tax credit for physicians and dentists who provide free Medicaid services to Medicaid recipients, but only if a matching federal tax credit is enacted, and the Alabama credit would equal 35% of the federal credit.

What This Bill Does

It would authorize an Alabama income tax credit for qualified physicians and dentists who provide free Medicaid services to Medicaid recipients, starting the first tax year after federal enactment of a federal credit for such services. The Alabama credit would equal 35% of the federal credit amount. It would not be available if the provider claims a deduction for those free services. The Department of Revenue would issue rules and work with the Alabama Medicaid Agency to implement the credit and manage information flow.

Who It Affects

• Qualified physicians and qualified dentists in Alabama who provide free Medicaid services to Medicaid recipients; they could claim the Alabama credit (35% of the federal credit) once federal enactment occurs.
• Medicaid recipients in Alabama who receive free services from these providers, with potential indirect benefit from increased access to care.

Key Provisions

• Establishes an Alabama income tax credit for qualified physicians and dentists who provide free Medicaid services to Medicaid recipients.
• Credit is contingent on federal legislation enacting a comparable federal tax credit and would be equal to 35% of the federal credit amount.
• No Alabama credit if the provider claims a deduction for the free Medicaid services provided.
• Defines terms for Medicaid Services, Medicaid Recipient, Qualified Physician, and Qualified Dentist.
• Department of Revenue to promulgate rules and coordinate with the Alabama Medicaid Agency to implement the credit and establish cost-effective information remittance processes.
• Severability clause and immediate effect upon passage and approval.

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