HB596 Alabama 2015 Session

Summary

Primary Sponsor

Tim WadsworthRepresentative

Republican

Session

Regular Session 2015

Title

Rural physician tax credit, Secs. 40-18-130, 40-18-131, 40-18-132 am'd.

Summary

HB596 caps the rural physician tax credit at five total years and updates the definitions for rural physicians and qualifying rural areas.

What This Bill Does

The bill keeps the $5,000 annual tax credit for rural physicians but limits the total time a qualifying physician can claim it to five years. It defines who counts as a rural physician, what counts as a small or rural community county, and what constitutes a small or rural hospital. It adds eligibility rules, including a ban on credits for those practicing in a rural community as of May 4, 1993, and establishes conditions for those who previously practiced in rural areas and later returned after urban practice. The Department of Revenue would create rules to implement these changes. The credit becomes effective the first day of the third month after the bill is passed.

Who It Affects

• Rural physicians who practice and reside in small or rural Alabama communities; they could receive the $5,000 credit but only for up to five total tax years.
• Alabama Department of Revenue and rural counties/hospitals; they define eligibility and administer the credit according to the new definitions and rules.

Key Provisions

• Defines rural physician, small or rural community county, and small or rural hospital.
• Credit amount set at $5,000 per year starting with the 2016 tax year.
• Credit may be claimed for not more than five consecutive total tax years from enactment.
• No credit for a rural physician practicing in a small or rural community as of May 4, 1993.
• Restrictions for physicians who previously practiced in a rural community and then returned after urban practice (requires at least three years in urban practice).
• Department of Revenue to promulgate rules to implement the provisions.
• Effective date: first day of the third month after passage and governor 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

Tax Credits