Bill > HB46

This bill replaces the existing Rural Physician Tax Credit program with a new version aimed at improving physician recruitment and retention in rural Alabama communities. The new program provides eligible rural physicians (defined as licensed doctors living and practicing in communities with 75,000 or fewer inhabitants) a $10,000 tax credit per year for up to four tax years between 2026 and 2030. To qualify, physicians must not have previously claimed the full five-year credit under the old program and must have either been practicing in a large or urban community, or outside Alabama, for at least three years before returning to a rural practice. Physicians must obtain a certificate from the Alabama Statewide Area Health Education Center Program Office to claim the credit, and the Department of Revenue will track and report on these credits. The bill also requires the Alabama Commission on the Evaluation of Services to assess the program's effectiveness during the 2030 fiscal year, with the goal of developing performance metrics to measure the impact of the incentive on rural healthcare recruitment. The existing tax credit program will be terminated effective December 31, 2025, and the new program will take effect on October 1, 2025.

Budget and Finance

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