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SENATE FLOOR VERSION
April 7, 2021
ENGROSSED HOUSE
BILL NO. 2089 By: McCall, O'Donnell, Phillips
and Boles of the House
and
McCortney and Jech of the
Senate
An Act relating to income tax; providing credit for
income from compensation related to certain practice
of medicine or osteopa thic medicine; defining terms;
providing for amount of credit; providing limitations
on use of credit; specifying time period during which
credit is allowed; requiring Oklahoma Tax Commission
to calculate and publish certain estimate; providing
for suspension of credit under certain circumstances;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.410 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. Except as provided in subsection F of this section, for
taxable years beginning after December 31, 2021, there shall be
allowed a credit against the tax imposed pursuant to Section 2355 of
Title 68 of the Oklahoma Statutes on taxable income from
compensation directly related to the practice of medicine or
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osteopathic medicine by a qua lifying doctor in a rural area of the
state.
B. For purposes of this section:
1. "Qualifying doctor" means a medical doctor or osteopathic
physician:
a. who is licensed in this state by the State Board of
Medical Licensure and Supervision or the State Bo ard
of Osteopathic Examiners either on or after the
effective date of this act or at any time within the
period two (2) years prior to the effective date of
this act, but not earlier than January 1, 20 20,
b. who has graduated from a college of medicine or
osteopathic medicine located in this state or has
completed his or her residency in this state, and
c. whose primary residence is located within the same
county as the rural area where the compensation
qualifying for credit under this paragraph was earned
or whose primary residence is located within the
jurisdiction of a federally recognized tribe and is
directly employed by a tribally owned or operated
health facility or federal Indian Health Service
facility. For purposes of this subparagraph, the
qualifying doctor must maintain the primary residence
either within the county or within the jurisdiction of
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the federally recognized tribe for the entire taxable
year for which the credit otherwise authorized by this
section is claimed; and
2. "Rural area" mea ns any municipality or unincorporated
location in Oklahoma which:
a. has a population not exceeding twenty -five thousand
(25,000) as determined by the most recent Federal
Decennial Census, and
b. is at least twenty-five (25) miles from the boundary
of the nearest municipality in Oklahoma with a
population exceeding twenty-five thousand (25,000) as
determined by the most recent Federal Decennial
Census.
C. The amount of the credit provided by this section claimed by
a taxpayer in any tax year shall not exce ed Twenty-five Thousand
Dollars ($25,000.00).
D. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero.
E. Except as provided in subsection F of this section, a
qualifying doctor who first c laims the credit provided by this
section shall be allowed the credit for up to four (4) subsequent
taxable years so long as he or she qualifies pursuant to subsection
B of this section.
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F. 1. Annually the Oklahoma Tax Commission shall calculate and
publish an estimate of the cumulative total credits claimed du e to
the provisions of this section.
2. The credit provided by this section shall not be allowed for
any taxable year following a year when the Oklahoma Tax Commission
calculates an estimate under the provisions of paragraph 1 of this
subsection in excess of One Million Dollars ($1,000,000.00).
SECTION 2. This act shall become effective January 1, 202 2.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 7, 2021 - DO PASS