Bill > AB1431

This bill introduces a tax credit for medical professionals who provide services in rural areas of California, effective for taxable years from January 1, 2026, to January 1, 2031. The credit allows qualified healthcare providers, including physicians, nurses, dentists, psychologists, and other licensed medical professionals, to claim up to $5,000 per year for qualified income earned while providing medical services in rural areas. To qualify, the services must be in-person and not include elective cosmetic procedures or telehealth services. The bill defines "medical services" broadly to include diagnosis, treatment, and prevention of physical and mental conditions. If the tax credit exceeds the taxpayer's net tax, the excess can be carried forward for up to seven years. The legislation aims to encourage urban medical providers to work in underserved rural areas by improving healthcare access. The Franchise Tax Board is required to report on the total dollar amount of credits and number of taxpayers benefiting from this program by January 1, 2030, with the goal of helping the Legislature evaluate the credit's effectiveness in achieving its intended purpose of expanding healthcare access in rural communities.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1431