Bill > HB115

This bill replaces an existing income tax credit for rural physicians with a new program, aiming to improve the recruitment and retention of doctors in rural Alabama communities. The existing credit, which was set to expire on December 31, 2028, will now terminate on December 31, 2026, but any credits already awarded will still be honored. A new division is established for tax years beginning January 1, 2027, and ending December 31, 2031, offering a $10,000 annual tax credit to physicians who live and practice in a "rural community," defined as an area within a county of 75,000 or fewer residents that is either a municipality with 20,000 or fewer residents or an unincorporated area. This new credit can be claimed for up to four years, with specific provisions for physicians who previously claimed the old credit or who return to rural practice after a period in urban areas. To qualify, physicians must provide documentation to the Alabama Statewide Area Health Education Center Program Office, which will issue a certificate for the physician to submit with their tax return. The bill also outlines reporting requirements for various state agencies involved in administering and evaluating the program, and it will become effective on October 1, 2026.

Budget and Finance

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