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FISCAL NOTE
House Bill 46
Committee: Ways and Means Education Sponsor: Representative Ed Oliver
Analyst: Tiffany Weaver Date: 04/14/2025
House Bill 46as introduced would terminate the existing rural tax credit program for tax years
ending after December 31, 2025 but allow any physician currently claiming the tax credit to
continue claiming the tax credit until the credit expires. This bill would also establish a new
rural physician tax credit program for tax years beginning after January 1, 2026, providing a
$10,000 tax credit that may be claimed by rural physicians residing and practicing in newly
defined rural communities, would decrease income tax revenues to the Education Trust Fund by
an undetermined amount for Fiscal Years 2026 through 2030 dependent upon the number of
physicians who: (1) reside in and practice medicine in a rural community, as provided by this
bill or (2) return to practice in a rural community after having practiced in a non-rural
community or outside of Alabama for at least three years. In tax year 2024, 68 rural physicians
claimed the current tax credit for a total of $251,000.
This bill would also increase the administrative obligations of: (1) the Alabama Statewide Area
Health Education Center Program Office to review information submitted by physicians seeking
to claim the tax credit, issue certificates to qualifying physicians, and file informational reports
on the number of tax credits authorized and (2) the Alabama Commission on the Evaluation of
Services to evaluate the successfulness of the program.