FN-QZC7515-2
Page 1
FISCAL NOTE
House Bill 46
Committee: Ways and Means Education Sponsor: Representative Ed Oliver
Analyst: Tiffany Weaver Date: 04/16/2025
House Bill 46as reported by the Committee on Ways and Means Education 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.