Alabama 2024 Regular Session

Alabama House Bill HB291

Introduced
3/5/24  
Introduced
3/5/24  

Caption

Physicians, rural physicians income tax credit, existing law repealed and replaced with new income tax credit after December 31, 2024, new credit increased to $10,000 per year for four years, transition provisions

Impact

If enacted, HB291 will significantly alter the financial incentives provided to rural healthcare providers. The new credit aims to retain and attract medical professionals to under-served areas, ensuring better healthcare access for populations in rural communities. The updated bill also modifies definitions concerning what constitutes a 'rural community' and the requirements for physicians to qualify for these credits, thereby aiming for a more effective recruitment strategy for healthcare professionals.

Summary

House Bill 291 proposes a change to the existing income tax credits for rural physicians in Alabama. The bill seeks to repeal the current tax credit structure, which provides a $5,000 credit annually for five years to rural physicians, effective after December 31, 2024. In place of this, it establishes a new income tax credit of $10,000 per year for four years for physicians who qualify under the newly defined criteria. This shift aims to enhance incentives for doctors practicing in rural areas, reflecting a legislative intent to address the physician shortages in those regions.

Contention

There may be notable concerns regarding the changes that HB291 introduces, particularly around the repeal of the existing credits and the introduction of new qualification parameters. Some stakeholders might argue that the transition period is insufficient or that the new definitions may overly restrict the eligibility of certain physicians. There could also be pushback regarding the removal of hospital privileges as a requirement, which some stakeholders believe are crucial for maintaining quality care in rural settings. Overall, the bill reflects a legislative attempt to balance fiscal responsibility with the pressing need for improved healthcare services in rural Alabama.

Companion Bills

No companion bills found.

Previously Filed As

AL HB46

Physicians, rural physicians income tax credit, replace existing credit

AL HB283

Relating to state income tax credits for rural physicians; to designate Sections 40-18-130, 40-18-131, and 40-18-132, Code of Alabama 1975, as Division 1 of Article 4A of Chapter 18 of Title 40, Code of Alabama 1975; to terminate the income tax credit authorized for a rural physician under the existing Article 4A of Chapter 18, Title 40, Code of Alabama 1975, effective December 31, 2023; to provide that any physician who claimed the credit or claims the credit under the existing Article 4A for the tax year ending on December 31, 2023, would be authorized to continue to claim the credit under the prior law until the credit period authorized under the prior law for that physician expires; to add Division 2 to Article 4A of Chapter 18, Title 40, Code of Alabama 1975, to further provide for a rural physician income tax credit; to provide definitions; to modify the requirement for residence and practice in a rural community; to remove the requirement for hospital privileges in a rural community; and to require the State Board of Medical Examiners to certify physicians who qualify for the income tax credit.

AL SB277

Relating to state income tax credits for rural physicians; to designate Sections 40-18-130, 40-18-131, and 40-18-132, Code of Alabama 1975, as Division 1 of Article 4A of Chapter 18 of Title 40, Code of Alabama 1975; to terminate the income tax credit authorized for a rural physician under the existing Article 4A of Chapter 18, Title 40, Code of Alabama 1975, effective December 31, 2023; to provide that any physician who claimed the credit or claims the credit under the existing Article 4A for the tax year ending on December 31, 2023, would be authorized to continue to claim the credit under the prior law until the credit period authorized under the prior law for that physician expires; to add Division 2 to Article 4A of Chapter 18, Title 40, Code of Alabama 1975, to further provide for a rural physician income tax credit; to provide definitions; to modify the requirement for residence and practice in a rural community; to remove the requirement for hospital privileges in a rural community; and to require the State Board of Medical Examiners to certify physicians who qualify for the income tax credit.

AL HB519

Rural physicians, income tax credit for practice of medicine in a rural area, conditions and limitations, Secs.40-18-130, 40-18-131, 40-18-132 terminated after tax year 2022, new credit effective January 2023, Bd. of Medical Examiners to certify eligible doctors, Secs. 40-18-133, 40-18-133.1, 40-18-133.2 added; Secs. 40-18-130, 40-18-131, 40-18-132 repealed

AL HB82

Income tax; limit eligibility for rural physician tax credit to physicians who qualify on or before December 31, 2023

AL HB2089

Revenue and taxation; income tax credit; rural physicians; effective date.

AL SB299

Relating to the Coal Production Tax Credit; to amend Section 40-18-220, Code of Alabama 1975, to allow the credit to be claimed against both income and utility services taxes; to allow the credits to be earned by all persons that increase their production of coal mined in Alabama from the prior year; to allow any unused credits to be carried forward for no more than five years;

AL AB2795

Personal income taxes: credits: New Americans Incentive Tax Credit.

AL SB1327

Income taxation: credits: local news media: data extraction transactions.

AL AB3101

Income taxes: credits: California New Markets Tax Credit.

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