Alabama 2025 Regular Session

Alabama House Bill HB46 Compare Versions

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

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1	1	HB46INTRODUCED
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3	3	HB46
4	4	9RZHPBM-1
5	5	By Representative Oliver
6	6	RFD: Ways and Means Education
7	7	First Read: 04-Feb-25
8	8	PFD: 01-Oct-24
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14	14	6 9RZHPBM-1 09/09/2024 PMG (L) PMG 2024-2092
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16	16	PFD: 01-Oct-24
17	17	SYNOPSIS:
18	18	Under existing law, a physician who qualifies as
19	19	a rural physician in a small or rural community with a
20	20	small or rural hospital is entitled to a tax credit of
21	21	$5,000 each year for five years. This credit is
22	22	repealed effective December 31, 2028.
23	23	This bill would move up the repeal date of the
24	24	existing rural physician income tax credit to end with
25	25	the tax year ending on December 31, 2025, but would
26	26	authorize a physician claiming the credit for the tax
27	27	year ending on December 31, 2025, to claim the new
28	28	physician income tax credit for the remainder of the
29	29	five-year credit period if the physician qualifies
30	30	under the new credit.
31	31	This bill would further provide a new rural
32	32	physician income tax credit effective for tax years
33	33	beginning on or after January 1, 2026, for four years.
34	34	The bill would further define the requirements
35	35	for residence and the definition of a "rural
36	36	community."
37	37	The bill would require the Alabama Statewide
38	38	Area Health Education Center Program Office to
39	39	administer the program and to issue certificates to
40	40	physicians who qualify for the tax credit.
41	41	A BILL
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69	69	28 HB46 INTRODUCED
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71	71	A BILL
72	72	TO BE ENACTED
73	73	AN ACT
74	74	Relating to state income tax credits for rural
75	75	physicians; to designate Sections 40-18-130, 40-18-131,
76	76	40-18-132, and 40-18-133, Code of Alabama 1975, as Division 1
77	77	of Article 4A of Chapter 18 of Title 40, Code of Alabama 1975,
78	78	and to move up the repeal of the income tax credit authorized
79	79	for a rural physician under Division 1 to be effective
80	80	December 31, 2025; to add Division 2 to Article 4A of Chapter
81	81	18, Title 40, Code of Alabama 1975, to provide for a new rural
82	82	physician income tax credit; to provide definitions; and to
83	83	require the Alabama Statewide Area Health Education Center
84	84	Program Office, in consultation with the State Board of
85	85	Medical Examiners, to certify physicians who qualify for the
86	86	new income tax credit.
87	87	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
88	88	Section 1.(a) Sections 40-18-130, 40-18-131, 40-18-132,
89	89	and 40-18-133, Code of Alabama 1975, are designated as
90	90	Division 1 of Article 4A of Chapter 18 of Title 40, Code of
91	91	Alabama 1975.
92	92	Section 2. Section 40-18-133, Code of Alabama 1975, is
93	93	amended to read as follows:
94	94	"§40-18-133
95	95	(a) The Rural Physician Tax Credit ,under Division 1 of
96	96	Article 4A, commencing with Section 40-18-130, Chapter 18, of
97	97	Title 40, is repealed terminated effective December 31, 2028,
98	98	unless extended by an act of the Legislature prior to that
99	99	date for no more than five additional years 2025.
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129	129	date for no more than five additional years 2025.
130	130	(b) The repealing terminating of the incentives in
131	131	subsection (a) shall only affect the availability of the tax
132	132	credits after December 31, 2028, and shall not cause a
133	133	reduction or suspension of any credits awarded on or prior to
134	134	December 31, 20252028.
135	135	Section 3. Division 2 of Article 4A, commencing with
136	136	Section 40-18-134, is added to Chapter 18 of Title 40, Code of
137	137	Alabama 1975, to read as follows:
138	138	Division 2.
139	139	§40-18-134
140	140	It is the intent of the Legislature to institute
141	141	programs that will make rural Alabama communities more
142	142	competitive in the recruitment and retention of physicians and
143	143	reduce inequities that rural communities have in the funding
144	144	and recruitment of physicians.
145	145	§40-18-134.1
146	146	For the purposes of this division, the following words
147	147	have the following meanings, respectively, unless the context
148	148	clearly indicates otherwise:
149	149	(1) PRACTICES MEDICINE. The practice of medicine or
150	150	osteopathy as defined in Section 34-24-50.
151	151	(2) RURAL COMMUNITY. According to the most recent
152	152	federal decennial census, an area within a county having a
153	153	population of 50,000 or less inhabitants, that is one of the
154	154	following:
155	155	a. A municipality that has a population of 20,000 or
156	156	less inhabitants.
157	157	b. The unincorporated area of the county.
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187	187	b. The unincorporated area of the county.
188	188	(3) RURAL PHYSICIAN. A physician licensed to practice
189	189	medicine in Alabama who lives in a rural community and
190	190	practices medicine in a rural community.
191	191	§40-18-134.2
192	192	(a)(1) Except as provided in subdivision (2), for tax
193	193	years beginning on or after January 1, 2026, and ending
194	194	December 31, 2030, a physician qualifying as a rural physician
195	195	under this division shall be allowed a credit against the tax
196	196	imposed by Section 40-18-2, in the sum of ten thousand dollars
197	197	($10,000) per tax year. The tax credit under this subdivision
198	198	may be claimed for not more than four tax years except as
199	199	provided in subdivision (2).
200	200	(2) No tax credit may be claimed under this division by
201	201	a physician who previously claimed a rural physician tax
202	202	credit under Division 1 prior to January 1, 2026, except a
203	203	physician who claimed a tax credit under Division 1 for less
204	204	than the five years authorized under Division 1 prior to
205	205	January 1, 2025, and who is otherwise eligible to claim a
206	206	credit under this division, may claim a tax credit under this
207	207	division for the remainder of the five-year credit period
208	208	previously authorized under Division 1.
209	209	(3) No tax credit shall be allowed under this division
210	210	by a physician who practiced in a rural community prior to
211	211	January 1, 2026, unless on or after January 1, 2026, the
212	212	physician returns to practice in a rural community after
213	213	having practiced in a large or urban community or outside of
214	214	Alabama for at least three years.
215	215	(b) Prior to claiming a credit under this division, a
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245	245	(b) Prior to claiming a credit under this division, a
246	246	rural physician shall submit to the Alabama Statewide Area
247	247	Health Education Center Program Office, or its successor,
248	248	adequate information to substantiate that he or she qualifies
249	249	for the income tax credit. The Alabama Statewide Area Health
250	250	Education Center Program Office, upon review of the
251	251	documentation from the rural physician, shall make the
252	252	determination on whether the physician qualifies for the
253	253	credit and shall issue a certificate to the qualifying
254	254	physician. The certificate shall be submitted by the taxpayer
255	255	at the time of filing the return. Failure to submit the
256	256	required certificate to the Department of Revenue shall result
257	257	in the automatic denial of the credit.
258	258	(c) The Alabama Statewide Area Health Education Center
259	259	Program Office shall submit an annual informational report to
260	260	the Department of Revenue by January 31 of each year that
261	261	lists all taxpayer issued certificates with information
262	262	required by the department for credit certification.
263	263	(d) Effective for tax years beginning January 1, 2026,
264	264	and ending December 31, 2030, the Department of Revenue shall
265	265	file an annual informational report in accordance with Section
266	266	40-1-50 and rules adopted under that section, for physicians
267	267	who receive the credit under this division.
268	268	(e) The Department of Revenue shall adopt any rules
269	269	necessary to implement and administer this division.
270	270	(f) The Alabama Board of Medical Examiners shall assist
271	271	the Alabama Statewide Area Health Education Center Program
272	272	Office in verifying the eligibility of physicians applying for
273	273	the credit.
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303	303	the credit.
304	304	(g) The Alabama Commission on the Evaluation of
305	305	Services shall consult with the Alabama Statewide Area Health
306	306	Education Center Program Office to develop performance metrics
307	307	and other measures of success to include in the annual report
308	308	required pursuant to subsection (d). During the 2030 fiscal
309	309	year, this incentive shall undergo an evaluation by the
310	310	Alabama Commission on the Evaluation of Services to determine
311	311	whether the program is impacting the determined measures of
312	312	success.
313	313	(h) The Alabama Commission on the Evaluation of
314	314	Services shall consult with the Alabama Statewide Area Health
315	315	Education Center Program Office to develop the appropriate
316	316	measures and methodology for conducting the needs assessment.
317	317	Section 4. Division 1 of Article 4A of Chapter 18 of
318	318	Title 40, Code of Alabama 1975, consisting of Sections
319	319	40-18-130, 40-18-131, 40-18-132, and 40-18-133, is repealed.
320	320	Section 5. This act shall become effective October 1,
321	321	2025, except Section 4 shall become effective December 31,
322	322	2025.
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