HB291 Alabama 2024 Session

Summary

Primary Sponsor

Ed OliverRepresentative

Republican

Session

Regular Session 2024

Title

Physicians, rural physicians income tax credit, existing law repealed and replaced with new income tax credit after December 31, 2024, new credit increased to $10,000 per year for four years, transition provisions

Summary

HB291 replaces the current rural physician tax credit with a new $10,000-per-year credit for four years starting in 2025, with defined eligibility and administration rules.

What This Bill Does

It repeals the existing rural physician credit after 2024 but allows 2024 claimants to continue under the new rules for the remainder of their original five-year period if eligible. It creates a new Division 2 credit of $10,000 per tax year for tax years 2025 through 2029 (four years) or the remaining years from Division 1 for those who qualify. It defines who counts as a rural community and a rural physician, and removes the hospital privileges requirement. It assigns administration to the Alabama Statewide Area Health Education Center Program Office, requires certification for eligibility, and imposes reporting, rulemaking, and evaluation duties on state agencies and commissions.

Who It Affects

• Rural physicians who live and practice in a rural Alabama community; they may qualify for the new $10,000/year credit starting in 2025, with transitional rules for those who previously claimed under the old program.
• State and related entities (Alabama Statewide Area Health Education Center Program Office, Department of Revenue, Alabama Board of Medical Examiners, and the Commission on the Evaluation of Services) and rural communities, which will administer the program, certify eligibility, process credits, report on outcomes, and evaluate effectiveness.

Key Provisions

• Section 1: Repeals the old rural physician credit after December 31, 2024; allows 2024 claimants to continue under new rules if eligible for the remainder of the old five-year period.
• Division 2 created: provides a new rural physician credit of $10,000 per tax year for tax years 2025–2029 (four years) or the remaining years if previously under Division 1, with eligibility kept for up to four years unless extended by the Legislature.
• Definitions and residency: defines 'rural physician' and 'rural community' and removes the hospital privileges requirement; requires residency in a rural community and practice there.
• Administration and certification: ASACHEC Program Office will administer the program and certify qualifying physicians; certificates must be submitted with tax returns; automatic denial if certificate is missing.
• Reporting and oversight: Department of Revenue and the Office will produce annual informational reports; Board of Medical Examiners will assist in eligibility verification; Commission on the Evaluation of Services will develop metrics and evaluate the program by 2030; the Office will coordinate rulemaking and implementation.
• Effective date and transition: the act becomes effective October 1, 2024; the new credit ends or is re-evaluated after 2029 unless extended.

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 & Revenue