Relating to state income tax credits for rural physicians; to amend Sections 40-18-130 to 40-18-132, inclusive, Code of Alabama 1975, to increase the number of years a state income tax credit is given to physicians who reside and practice in small rural communities; and to extend the state income tax credit to dentists who reside and practice in small rural communities.
Sections 40-18-130 to 40-18-132, inclusive, Code of Alabama 1975, are amended to read as follows: "§40-18-130. It is the intent of the Legislature to institute programs that will make rural Alabama communities more competitive with other states in the recruitment and retention of physicians and dentists and reduce inequities that a small or rural hospital and small or rural communities have in the funding and recruitment of physician services physicians and dentists. "§40-18-131. "For the purposes of this article, the following words have the following meanings, respectively, unless the context clearly indicates otherwise: "(1) PRACTICING. Assessing, diagnosing, performing surgical procedures, treating, reporting, or giving advice in a medical capacity in a medical facility, not including a personal residence, located in a small rural community. Practicing includes prescribing medicines and signing any medical certificate required for statutory purposes, such as death and cremation certificates. For purposes of this act, a physician or dentist may practice in multiple locations. "(2) RURAL DENTIST. A dentist licensed to practice dentistry in Alabama who practices and resides in a small rural community and practices an annual average of at least 20 hours per week. "(3) RURAL PHYSICIAN. A physician licensed to practice medicine in Alabama who practices and resides in a small or rural community and has admission privileges to a small or rural hospital practices medicine an annual average of at least 20 hours per week. "(2) (4) SMALL OR RURAL COMMUNITY. A community in Alabama not located in an urbanized area that has less than 25,000 35,000 residents according to the latest decennial census and has a hospital with an emergency room. "(3) SMALL OR RURAL HOSPITAL. An acute care hospital that meets one of the following requirements: "a. Contains less than 105 beds and is located more than 20 miles, under normal travel conditions, from another acute care hospital located in Alabama. "b. Receives Medicare rural reimbursement from the federal government. "§40-18-132. "(a) Beginning with the 1994 tax year and terminating with the 2018 tax year, a person qualifying as a rural physician shall be allowed a credit against the tax imposed by Section 40-18-2, in the sum of $5,000. No credit shall be allowed to a rural physician who is, on May 4, 1993, practicing in a small or rural community. No credit shall be allowed to a physician who has previously practiced in a small or rural community unless, after May 4, 1993, that physician returns to practice in a small or rural community after having practiced in a large or urban community or outside of Alabama for at least three years. The tax credit may be claimed for not more than five consecutive tax years. "(b) Beginning with the 2019 tax year, a person newly qualifying as a rural dentist or a rural physician shall be allowed a credit against the tax imposed by Section 40-18-2, in the sum of five thousand dollars ($5,000). The tax credit may be claimed for not more than 10 consecutive tax years so long as the person continues to qualify as a rural physician or a rural dentist. A physician receiving the tax credit in subsection (a) during the 2018 tax year who also qualifiers as a rural physician under this subsection shall be entitled to a tax credit of five thousand dollars ($5,000) per tax year for a period of 10 consecutive years less the number of years prior to tax year 2018 for which the tax credit under subsection (a) has been received. "No tax credit shall be allowed under this subsection to a physician or dentist who has previously practiced in a small rural community unless, after December 31, 2018, the physician or dentist returns to practice in a small rural community after having practiced in a large or urban community or outside of Alabama for at least three years. "(c) Prior to claiming a credit under this act, the rural physician or rural dentist shall submit to the Alabama Department of Public Health, or their designee adequate information to substantiate that they qualify for the income tax credit. The Alabama Department of Public Health, or their designee, upon review of the foregoing documentation from the rural physician or dentist, shall make the determination on whether they qualify for the credit, and shall issue a certificate to the qualifying physician and dentist. No credit shall be granted to a rural physician or rural dentist who does not obtain a certificate from the Alabama Department of Public Health, or their designee, prior to claiming the credit on their income tax return, and fails to attach such certification to their income tax return at the time the credit is being claimed. "(d) Effective for tax years beginning after December 31, 2017, the Alabama Department of Public Health, or their designee shall file an annual informational report in accordance with Section 40-1-50 and rules adopted thereunder, for physicians and dentists receiving the credit under this article. "(e) The Department of Revenue shall promulgate any rules and regulations necessary to implement and administer the provisions of this article."
This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law. Senate Read for the first time and referred to the Senate committee on Finance and Taxation Education ...... 0.9-JAN-18Read for the second time and placed on the calen- dar 1 amendment.................................. 2.3-JAN-18Read for the third time and passed as amended .... 3.0-JAN-18 Yeas 31 Nays Patrick Harris, Secretary.
|January 30, 2018||H||Ways and Means Education first Amendment Offered|
|January 30, 2018||H||Pending third reading on day 19 Favorable from Ways and Means Education with 1 amendment|
|January 30, 2018||S||Motion to Read a Third Time and Pass adopted Roll Call 214|
|January 30, 2018||S||Dial motion to Adopt adopted Roll Call 213|
|January 30, 2018||S||Dial Amendment Offered|
|January 30, 2018||S||Dial motion to Table adopted Voice Vote|
|March 8, 2018||H||Read for the second time and placed on the calendar 1 amendment|
|January 30, 2018||S||Finance and Taxation Education Amendment Offered|
|February 1, 2018||H||Read for the first time and referred to the House of Representatives committee on Ways and Means Education|
|January 30, 2018||S||Third Reading Passed|
|February 1, 2018||S||Engrossed|
|January 30, 2018||S||Dial motion to Carry Over to the Call of the Chair adopted Voice Vote|
|January 30, 2018||S||Third Reading Carried Over to Call of the Chair|
|January 23, 2018||S||Read for the second time and placed on the calendar 1 amendment|
|January 9, 2018||S||Read for the first time and referred to the Senate committee on Finance and Taxation Education|