HB10 Alabama 2014 Session

Summary

Primary Sponsor

Becky Nordgren

Republican

Session

Regular Session 2014

Title

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

Summary

HB10 would create a Alabama state income tax credit for doctors and dentists who provide free Medicaid services, but only if a federal credit for the same is enacted.

What This Bill Does

If the federal government enacts a federal income tax credit for free Medicaid services, Alabama would allow a state income tax credit for qualified physicians or dentists who provide free Medicaid services to Medicaid recipients. The Alabama credit would be equal to 35% of the federal credit amount. The credit would not be available to someone who also claims a deduction for the same free services. The Department of Revenue, with the Alabama Medicaid Agency, would establish rules and procedures to implement the credit in a cost-effective way.

Who It Affects

• Qualified physicians and qualified dentists who provide free Medicaid services to Medicaid recipients would be eligible to claim the Alabama state credit (35% of the federal credit amount) starting in the first tax year after federal enactment.
• Medicaid recipients could indirectly benefit from potentially increased access to free Medicaid services, since the bill is intended to encourage providers to treat Medicaid patients.

Key Provisions

• Creates a state income tax credit for qualified physicians and qualified dentists who provide free Medicaid services to Medicaid recipients.
• Credit is contingent on passage of federal legislation establishing a comparable federal income tax credit and would equal 35% of the federal credit amount.
• No credit if the provider claims an Alabama income tax deduction for the same free Medicaid services.
• Definitions 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 procedures that are cost effective for providers.
• Effective immediately upon passage and approval, but the Alabama credit applies only in the first tax year following federal enactment.
• Severability clause (if part is invalid, rest remains).

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