SB78 Alabama 2016 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gerald O. Dial
Republican
Session: Regular Session 2016
Title: Income tax credits, increase for rural physicians and dentists, Secs. 40-18-130 to 40-18-132, inclusive, am'd.
Summary: The bill increases the rural income tax credit to $10,000 per year for rural physicians and dentists who practice and live in a rural community for 10 consecutive tax years.
What This Bill Does
It raises the credit amount from $5,000 to $10,000 and extends it to dentists as well as physicians. It applies to those who practice and reside in a rural community, starting with the 2016 tax year, and the credit can be claimed for 10 consecutive tax years. The bill keeps existing rules for eligibility and allows the Department of Revenue to set up the necessary regulations. It becomes law immediately after passing and approval by the governor.

Who It Affects
Rural physicians who practice and reside in rural communities, who would receive a $10,000 credit for 10 consecutive years starting in 2016.
Rural dentists who practice and reside in rural communities, who would also receive a $10,000 credit for 10 consecutive years starting in 2016.

Key Provisions
Amends Section 40-18-132 to increase the rural physician tax credit from $5,000 to $10,000 and to extend it for 10 consecutive tax years for those who practice and reside in a rural community.
Adds dentists to eligibility for the rural tax credit, with the same $10,000 annual credit for 10 consecutive years for those who practice and reside in a rural community.
Retains existing eligibility rules for the older rural physician credit (dating from 1994) including restrictions on eligibility based on prior practice location and a limit of five consecutive tax years under that provision.
Authorizes the Department of Revenue to promulgate regulations necessary to administer the credit.
Effective date: the act becomes effective immediately 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