HB46 Alabama 2025 Session

Summary

Primary Sponsor

Ed Oliver Representative

Republican

Session

2025 Regular Session

Title

Physicians, rural physicians income tax credit, replace existing credit

Description

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 This credit is repealed effective December 31, 2028.

This bill would move up the repeal date of the existing rural physician income tax credit to end with the tax year ending on December 31, 2025, but would authorize a physician claiming the credit for the tax year ending on December 31, 2025, to claim the new physician income tax credit for the remainder of the five-year credit period if the physician qualifies under the new credit.

This bill would further provide a new rural physician income tax credit effective for tax years beginning on or after January 1, 2026, for four years.

The bill would further define the requirements for residence and the definition of a "rural community." The bill would require the Alabama Statewide Area Health Education Center Program Office to administer the program and to issue certificates to physicians who qualify for the tax credit.

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Subjects

Taxation & Revenue