HB236 Alabama 2020 Session

Summary

Primary Sponsor

Kyle South

Republican

Session

Regular Session 2020

Title

State income tax credits, to extend rural practice tax credit to certified registered nurse practitioners and certified registered nurse anesthetists, Secs. 40-18-130, 40-18-131, 40-18-132 am'd.

Summary

HB236 would extend Alabama's rural physician tax credit to include rural certified registered nurse anesthetists (CRNAs), providing a $5,000 state income tax credit starting in the 2020 tax year.

What This Bill Does

It creates a $5,000 nonrefundable state income tax credit for rural CRNAs who practice in small or rural Alabama communities (at least 20 hours per week). Eligibility includes residency in a rural area and meeting defined rural/ hospital criteria; CRNAs who did not previously practice in a rural area before 2020 may qualify, but those who practiced rurally before 2020 cannot, unless they returned to rural practice after 2020 following a period in urban settings for at least three years. The credit can be claimed for up to five consecutive tax years, and the Department of Revenue will issue rules to administer the program.

Who It Affects

• Rural certified registered nurse anesthetists who practice in small or rural Alabama communities and meet the hour/work/residence requirements.
• Small or rural communities and rural hospitals in Alabama that employ CRNAs, which may become more competitive in recruiting CRNAs due to the credit.
• Alabama taxpayers who are CRNAs and file state income tax, provided they meet eligibility rules.

Key Provisions

• Extends the rural physician tax credit to include rural CRNAs by amending Sections 40-18-130, 40-18-131, and 40-18-132.
• Defines Rural Certified Registered Nurse Anesthetist as a CRNA practicing and residing in a small or rural community with an annual average of at least 20 hours per week.
• Credit amount is $5,000 against the state income tax, effective for the 2020 tax year.
• Eligibility rules mirror those for rural physicians: no credit if the CRNA practiced rurally before January 1, 2020, and if returning from urban practice, must have returned to rural practice for at least three years after January 1, 2020.
• Credit may be claimed for up to five consecutive tax years.
• Definitions for small or rural community (population under 25,000 with a hospital) and small or rural hospital (specific bed/ location or Medicare rural status criteria) are established.
• The Department of Revenue will promulgate rules and regulations to implement and administer the provisions.
• The act becomes effective immediately upon passage, with applicability beginning in the 2020 tax year.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation