HB519 Alabama 2022 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 for tax years beginning after December 31, 2022, but would authorize a physician claiming the credit for the tax year ending on December 31, 2022, to claim the credit for the remainder of the five-year credit period available under prior law

This bill would further provide a new rural physician income tax credit effective for tax year beginning on or after January 1, 2023. The bill would define rural community as a rural area under federal law

The bill would require the State Board of Medical Examiners to issue certificates to physicians 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, effective December 31, 2022; to provide that any physician who claimed the credit or claims the credit under the existing Article 4A for the tax year ending on December 31, 2022, would be authorized to continue to claim the credit under the prior law 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 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 community; and to require the State Board of Medical Examiners to certify physicians who qualify for the income tax credit.