HB74 Alabama 2016 Session

Summary

Primary Sponsor

Tim WadsworthRepresentative

Republican

Session

Regular Session 2016

Title

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

Summary

HB74 would limit the rural physician income tax credit to five total years and update who qualifies.

What This Bill Does

Sets a cap so a rural physician can claim the credit for at most five consecutive tax years. Creates clear definitions for rural physician, small or rural community county, and small or rural hospital to determine eligibility. Establishes a $5,000 tax credit for qualifying rural physicians starting with the 2016 tax year and outlines eligibility rules related to past practice in rural vs urban areas.

Who It Affects

• Rural physicians who practice in small or rural Alabama communities; they could claim the $5,000 credit but only for up to five consecutive tax years and under the eligibility rules about prior practice.
• Residents and hospitals in small or rural counties (less than 25,000 people) used to determine if a physician is rural, and which hospitals qualify (e.g., small hospitals with certain bed counts or Medicare rural reimbursement).
• Alabama Department of Revenue, which would implement the credit through rules and administer eligibility.

Key Provisions

• Limits the tax credit for rural physicians to five total consecutive tax years.
• Defines rural physician, small or rural community county, and small or rural hospital for purposes of the credit.
• Provides for a $5,000 credit per qualifying rural physician beginning with the tax year 2016, with eligibility restrictions based on prior practice in May 1993 and conditions for returning from urban practice.
• Requires the Department of Revenue to promulgate rules to implement the credit and sets an effective date: the first day of the third month after passage.

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