Alabama 2023 Regular Session

Alabama Senate Bill SB277 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB277INTRODUCED
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3	3	MP57H1-1
4	4	By Senators Stewart, Melson, Sessions, Williams, Hovey,
5	5	Kelley, Figures, Weaver, Beasley, Coleman, Carnley, Hatcher,
6	6	Livingston, Jones, Coleman-Madison, Price, Gudger, Smitherman
7	7	RFD: Finance and Taxation Education
8	8	First Read: 02-May-23
9	9	2023 Regular Session
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18	18	9 MP57H1-1 04/27/2023 FC (L) ma 2023-1805
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20	20	SYNOPSIS:
21	21	Under existing law, a physician who qualifies as
22	22	a rural physician in a small or rural community with a
23	23	small or rural hospital is entitled to a tax credit of
24	24	$5,000 each year for five years.
25	25	This bill would terminate the existing rural
26	26	physician income tax credit effective for tax years
27	27	beginning after December 31, 2023, but would authorize
28	28	a physician claiming the credit for the tax year ending
29	29	on December 31, 2023, to claim the credit for the
30	30	remainder of the five-year credit period available
31	31	under prior law.
32	32	This bill would further provide a new rural
33	33	physician income tax credit effective for tax year
34	34	beginning on or after January 1, 2024. The bill would
35	35	define rural community.
36	36	The bill would require the State Board of
37	37	Medical Examiners to issue certificates to physicians
38	38	who qualify for the tax credit.
39	39	A BILL
40	40	TO BE ENACTED
41	41	AN ACT
42	42	Relating to state income tax credits for rural
43	43	physicians; to designate Sections 40-18-130, 40-18-131, and
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73	73	40-18-132, Code of Alabama 1975, as Division 1 of Article 4A
74	74	of Chapter 18 of Title 40, Code of Alabama 1975; to terminate
75	75	the income tax credit authorized for a rural physician under
76	76	the existing Article 4A of Chapter 18, Title 40, Code of
77	77	Alabama 1975, effective December 31, 2023; to provide that any
78	78	physician who claimed the credit or claims the credit under
79	79	the existing Article 4A for the tax year ending on December
80	80	31, 2023, would be authorized to continue to claim the credit
81	81	under the prior law until the credit period authorized under
82	82	the prior law for that physician expires; to add Division 2 to
83	83	Article 4A of Chapter 18, Title 40, Code of Alabama 1975, to
84	84	further provide for a rural physician income tax credit; to
85	85	provide definitions; to modify the requirement for residence
86	86	and practice in a rural community; to remove the requirement
87	87	for hospital privileges in a rural community; and to require
88	88	the State Board of Medical Examiners to certify physicians who
89	89	qualify for the income tax credit.
90	90	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
91	91	Section 1. Sections 40-18-130, 40-18-131, and
92	92	40-18-132, Code of Alabama 1975, shall be designated as
93	93	Division 1 of Article 4A of Chapter 18 of Title 40, Code of
94	94	Alabama 1975.
95	95	Section 2.(a) Any income tax credit authorized pursuant
96	96	to Division 1 of Article 4A of Chapter 18, Title 40, composed
97	97	of Sections 40-18-130, 40-18-131, and 40-18-132, Code of
98	98	Alabama 1975, is terminated effective for tax years ending
99	99	after December 31, 2023, except as provided in subsection (b).
100	100	(b) Notwithstanding subsection (a), any physician who
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130	130	qualifies for and claims the credit under Division 1 of
131	131	Article 4A for the tax year ending on December 31, 2023, may
132	132	claim the credit under Division 1 for tax year 2023, and for
133	133	tax years thereafter up to the five-year credit period as
134	134	authorized under Division 1 for consecutive tax years. Any tax
135	135	year prior to 2023 in which the taxpayer claimed a credit
136	136	under Division 1 shall be included in the five-year limitation
137	137	for which the taxpayer is eligible to claim the credit.
138	138	(c) It is the intent of this section to authorize a
139	139	taxpayer eligible to claim the credit under Division 1 for the
140	140	2023 tax year to be grandfathered under Division 1 and
141	141	eligible to claim the tax credit for tax year 2023, and for
142	142	future tax years up to the five-year credit period authorized
143	143	under Division 1.
144	144	Section 3. Division 2 of Article 4A is added to Chapter
145	145	18 of Title 40, Code of Alabama 1975, commencing with Section
146	146	40-18-133, to read as follows:
147	147	Division 2.
148	148	§40-18-133
149	149	It is the intent of the Legislature to institute
150	150	programs that will make rural Alabama communities more
151	151	competitive in the recruitment and retention of physicians and
152	152	reduce inequities that rural communities have in the funding
153	153	and recruitment of physicians.
154	154	§40-18-133.1
155	155	For the purposes of this division, the following words
156	156	have the following meanings, respectively, unless the context
157	157	clearly indicates otherwise:
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187	187	(1) PRACTICES MEDICINE. The practice of medicine or
188	188	osteopathy as defined in Section 34-24-50.
189	189	(2) RURAL COMMUNITY. According to the most recent
190	190	federal decennial census, an area within a county having a
191	191	population of 50,000 or less inhabitants, that is either of
192	192	the following:
193	193	a. A municipality that has a population of 15,000 or
194	194	less inhabitants.
195	195	b. The unincorporated area of the county.
196	196	(3) RURAL PHYSICIAN. A physician licensed to practice
197	197	medicine in Alabama who lives in a rural community and
198	198	practices medicine in a rural community.
199	199	§40-18-133.2.
200	200	(a)(1) Except as provided in subdivision (2), for tax
201	201	year beginning on or after January 1, 2024, and ending
202	202	December 31, 2028, unless extended by an act of the
203	203	Legislature, a physician newly qualifying as a rural physician
204	204	shall be allowed a credit against the tax imposed by Section
205	205	40-18-2, in the sum of five thousand dollars ($5,000) per tax
206	206	year. The tax credit may be claimed for not more than five tax
207	207	years if the physician continues to qualify as a rural
208	208	physician.
209	209	(2) No tax credit may be claimed under this division by
210	210	a physician who previously claimed a rural physician tax
211	211	credit under Division 1 prior to its termination, or
212	212	otherwise.
213	213	(3) No tax credit shall be allowed under this division
214	214	by a physician who practiced in a rural community prior to
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244	244	January 1, 2024, unless, after January 1, 2024, the physician
245	245	returns to practice in a rural community after having
246	246	practiced in a large or urban community or outside of Alabama
247	247	for at least three years.
248	248	(b) Prior to claiming a credit under this division, a
249	249	rural physician shall submit to the State Board of Medical
250	250	Examiners, or its designee, adequate information to
251	251	substantiate that he or she qualifies for the income tax
252	252	credit. The board or its designee, upon review of the
253	253	documentation from the rural physician, shall make the
254	254	determination on whether he or she qualifies for the credit
255	255	and shall issue a certificate to the qualifying physician. The
256	256	certificate shall be submitted by the taxpayer at the time of
257	257	filing the return. Failure to submit the required certificate
258	258	to the Department of Revenue shall result in the automatic
259	259	denial of the credit.
260	260	(c) The State Board of Medical Examiners, or its
261	261	designee, shall submit an annual informational report to the
262	262	Department of Revenue by January 31 of each year that lists
263	263	all taxpayer issued certificates with information required by
264	264	the department for credit certification.
265	265	(d) Effective for tax years beginning after December
266	266	31, 2023, the Department of Revenue shall file an annual
267	267	informational report in accordance with Section 40-1-50 and
268	268	rules adopted under that section, for physicians who receive
269	269	the credit under this division.
270	270	(e) The Department of Revenue shall adopt any rules
271	271	necessary to implement and administer this division.
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301	301	Section 4. This act shall become effective immediately
302	302	following its passage and approval by the Governor, or its
303	303	otherwise becoming law.
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