HB 236

Existing law provides for a state tax credit for physicians practicing in rural areas

This bill would provide a similar state tax credit for certified registered nurse practitioners and certified registered nurse anesthetists who practice in rural areas

Relating to state income tax credits; to amend Sections 40-18-130, 40-18-131, and 40-18-132, Code of Alabama 1975; to extend the tax credit for physicians practicing in rural areas to certified registered nurse practitioners and certified registered nurse anesthetists who practice in rural areas; and to apply this act beginning with the 2019 income tax year.

Section 1

Sections 40-18-130, 40-18-131, and 40-18-132, 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 reduce inequities that a small or rural hospital and small or, rural communities have in the funding and recruitment of physician services physicians and advance practice nurses.

§40-18-131.

For the purposes of this article, the following words have the following meanings, respectively, unless the context clearly indicates otherwise:

(1) RURAL CERTIFIED REGISTERED NURSE ANESTHETIST. A nurse licensed as a certified registered nurse anesthetist in this state who practices and resides in a small or rural community and practices for an annual average of at least 20 hours per week.

(2) RURAL CERTIFIED REGISTERED NURSE PRACTITIONER. A nurse licensed as a certified registered nurse practitioner in this state who practices and resides in a small or rural community and practices for an annual average of at least 20 hours per week.

(1)(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.

(2)(4) SMALL OR RURAL COMMUNITY. A community in Alabama that has less than 25,000 residents according to the latest decennial census and has a hospital with an emergency room.

(3)(5) 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, 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 five thousand dollars ($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 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 qualifying as a rural certified registered nurse practitioner or certified registered nurse anesthetist shall be allowed a credit against the tax imposed by Section 40-18-2, in the sum of five thousand dollars ($5,000). No credit shall be allowed to a certified registered nurse practitioner or certified registered nurse anesthetist who is, on the effective date of the act adding this amendatory language, practicing in a small or rural community. No credit shall be allowed to a certified registered nurse practitioner or certified registered nurse anesthetist who has previously practiced in a small or rural community unless, after the effective date of the act adding this amendatory language, the certified registered nurse practitioner or certified registered nurse anesthetist returns to practice in a small or rural community after having practiced in a large or urban community for at least three years. The tax credit may be claimed for not more than 10 consecutive tax years.

(c) The Department of Revenue shall promulgate any adopt rules and regulations necessary to implement and administer the provisions of this article."

Section 2

This act shall become effective immediately upon its passage and approval by the Governor, or its otherwise becoming law.