SB374 Alabama 2019 Session

Summary

Primary Sponsor

Steve LivingstonSenator

Republican

Session

Regular Session 2019

Title

Physicians, rural income tax credit under certain conditions, existing credit terminated, new credit provided, Secs. 40-18-130.1 to 40-18-132.1, inclusive, added.

Summary

SB 374 replaces the old rural physician tax credit with a new program that provides a $5,000 annual credit for up to six years to rural physicians who work at least 30 hours per week in a rural community, with certification by the Department of Public Health.

What This Bill Does

It ends the existing rural physician tax credit for tax years ending after 12/31/2019, but lets those who claimed it before that date continue until their credit expires. It creates a new rural physician credit starting in 2020 with definitions for rural physicians, rural communities, and practices. It requires a rural physician to practice at least 30 hours per week in a rural community and to obtain a certificate from the Department of Public Health before claiming the credit. It allows eligible physicians to receive $5,000 per year for up to six consecutive tax years and includes rules about eligibility if the physician previously left rural practice or is currently practicing in a rural community on the act’s effective date.

Who It Affects

• Rural physicians who practice in Alabama: must meet the 30-hour-per-week requirement, obtain a Department of Public Health certificate, and may claim a $5,000 credit per year for up to six years.
• State agencies (Department of Public Health and Department of Revenue): responsible for certifying physicians, administering and documenting the credit, and issuing related rules and annual reporting.

Key Provisions

• Terminating the existing rural physician credit for tax years ending after 12/31/2019, with grandfathering for those who claimed it before that date.
• Creating Article 4A.1 starting 40-18-130.1 establishing a new rural physician income tax credit program and definitions.
• Definitions of PRACTICES, RURAL COMMUNITY (not in an urbanized area), and RURAL PHYSICIAN (physician who practices in a rural community at least 30 hours/week and resides there).
• Credit amount of $5,000 per year for up to six consecutive tax years; no credit for physicians already practicing in a rural community on the act’s effective date; possible re-qualification after leaving rural practice for at least three years.
• Certification requirement: rural physicians must obtain a certificate from the Department of Public Health before claiming the credit and attach it to their tax return.
• Administrative and reporting provisions: DP H to file annual informational reports on recipients; Department of Revenue to issue implementing rules.

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