SB195 Alabama 2020 Session

Under existing law, a physician who qualifies as a rural physician in a small or rural community with a small or rural hospital is entitled to a tax credit of $5,000 each year for five years

This bill would terminate the existing rural physician income tax credit effective December 31, 2020, and would authorize a physician claiming the credit for the tax year ending on December 31, 2020, to claim the credit under the revised act for the remainder of the five year credit period available under the prior law

This bill would further provide a new rural dentist and rural physician income tax credit effective for tax year beginning after January 1, 2021. The bill would define practices, rural dentist and physician, and rural community. A rural community would be defined as a rural area under federal law. The requirements that a rural community have a rural hospital would be deleted

The bill would require a rural dentist or physician to practice at least 20 hours per week in a rural community

The bill would require the State Board of Medical Examiners and the State Board of Dental Examiners to issue certificates to physicians and dentists, respectively, who qualify for the tax credit

Relating to state income tax credits for rural physicians; to designate Sections 40-18-130, 40-18-131, and 40-18-132, Code of Alabama 1975, as Division 1 of Article 4A of Chapter 18 of Title 40, Code of Alabama 1975; to terminate the income tax credit authorized for a rural physician under the existing Article 4A of Chapter 18, Title 40, Code of Alabama 1975, as it existed prior to January 1, 2021, and to provide that any physician who claimed the credit or claims the exemption under the existing Article 4A for the tax year ending on December 31, 2020, would be authorized to continue to claim the exemption under this act until the credit period authorized under the prior law for that physician expires; to add Division 2 to Article 4A of Chapter 18, Title 40, Code of Alabama 1975, to further provide for a rural dentist and rural physician income tax credit; to provide definitions; to modify the requirement for residence and practice in a rural community; to remove the requirement for hospital privileges in a rural hospital; and to require the State Board of Medical Examiners and the State Board of Dental Examiners to certify physicians and dentists, respectively, who qualify for the income tax credit.