SB62 Alabama 2018 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2018

Title

State income tax, credits, rural physicians and dentists, extension of credit for residing and practicing in areas of critical need, Sec. 40-18-132 am'd.

Summary

SB 62 would extend Alabama's rural health tax credit to include dentists, raise the credit to a 10-year maximum, and define areas of critical need for eligibility.

What This Bill Does

It allows rural physicians and rural dentists who live and practice in areas of critical need to claim a $5,000 state income tax credit for up to 10 consecutive tax years (2018 through 2022). It expands eligibility to dentists in addition to physicians and defines 'area of critical need' as locations not within 10 miles of a city with more than 25,000 people or an urbanized area. Practitioners must average at least 20 hours of practice per week and may need precertification from the Department of Revenue; annual reports must be filed by the relevant scholarship boards for recipients.

Who It Affects

• Rural physicians who reside and practice in areas of critical need in Alabama and meet the weekly practice requirement, eligible for a $5,000 tax credit for up to 10 consecutive years (2018-2022).
• Rural dentists who reside and practice in areas of critical need in Alabama and meet the weekly practice requirement, eligible for a $5,000 tax credit for up to 10 consecutive years (2018-2022).

Key Provisions

• Adds dentists to the Rural Physician and Dentist Credit Act and provides a $5,000 annual tax credit to each qualifying rural physician or rural dentist.
• Credit may be claimed for up to ten consecutive tax years, for tax years 2018 through 2022.
• Area of critical need is defined as locations outside a municipality of more than 25,000 people or outside an urbanized area, per Census definitions.
• Rural physicians and rural dentists must reside in and practice in an area of critical need and average at least 20 hours per week of practice.
• If a recipient previously practiced in a critical need area, they must return to such an area after at least three years outside to remain eligible.
• If the taxpayer previously claimed the 2017 credit under 40-18-132, the new credit may be reduced by the number of years it was claimed before 2018.
• The Department of Revenue may require precertification and will issue certifications to qualifying taxpayers.
• Annual informational reports must be filed by the Alabama Board of Medical Scholarship Awards and the Alabama Board of Dental Scholarship Awards for recipients.
• The act takes effect for tax years beginning after December 31, 2017 (i.e., starting in 2018).

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