SB78

ENGROSSED

By Senator Dial

A BILL TO BE ENTITLED AN ACT

Relating to state income tax credits for rural physicians; to amend Sections 40-18-130 to 40-18-132, inclusive, Code of Alabama 1975, to increase the number of years a state income tax credit is given to physicians who reside and practice in small rural communities; and to extend the state income tax credit to dentists who reside and practice in small rural communities.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 40-18-130 to 40-18-132, inclusive, Code of Alabama 1975, are amended to read as follows:

§40-18-130.

It is the intent of the Legislature to institute programs that will make rural Alabama communities more competitive with other states in the recruitment and retention of physicians and dentists and reduce inequities that a small or rural hospital and small or rural communities have in the funding and recruitment of physician services physicians and dentists.

§40-18-131.

"For the purposes of this article, the following words have the following meanings, respectively, unless the context clearly indicates otherwise:

"(1) RURAL DENTIST. A dentist licensed to practice dentistry in Alabama who practices and resides in a small rural community and practices an annual average of at least 20 hours per week.

"(2) RURAL PHYSICIAN. A physician licensed to practice medicine in Alabama who practices and resides in a small or rural community and has admission privileges to a small or rural hospital practices medicine an annual average of at least 20 hours per week.

"(2) (3) SMALL OR RURAL COMMUNITY. A community city, town, or unincorporated area recognized by the U.S. Census Bureau in Alabama not located in an urbanized area as defined by the Census Bureau that has less fewer than 25,000 residents according to the latest decennial census and has a hospital with an emergency room.

"(3) SMALL OR RURAL HOSPITAL. An acute care hospital that meets one of the following requirements:

"a. Contains less than 105 beds and is located more than 20 miles, under normal travel conditions, from another acute care hospital located in Alabama.

"b. Receives Medicare rural reimbursement from the federal government.

§40-18-132.

"(a) Beginning with the 1994 tax year and terminating with the 2015 tax year, a person qualifying as a rural physician shall be allowed a credit against the tax imposed by Section 40-18-2, in the sum of $5,000. No credit shall be allowed to a rural physician who is, on May 4, 1993, practicing in a small or rural community. No credit shall be allowed to a physician who has previously practiced in a small or rural community unless, after May 4, 1993, that physician returns to practice in a small or rural community after having practiced in a large or urban community for at least three years. The tax credit may be claimed for not more than five consecutive tax years.

"(b) Beginning with the 2016 tax year, a person qualifying as a rural dentist or a rural physician shall be allowed a credit against the tax imposed by Section 40-18-2, in the sum of five thousand dollars ($5,000). The tax credit may be claimed for not more than 10 consecutive tax years. A physician receiving the tax credit in subsection (a) during the 2015 tax year who is also entitled to the tax credit under this subsection shall be entitled to a tax credit of five thousand dollars ($5,000) per tax year for a period of 10 years less the number of years prior to tax year 2016 for which the tax credit under subsection (a) has been received.

"(c) The Department of Revenue shall promulgate any rules and regulations necessary to implement and administer the provisions of this article."

Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Taxation

Tax Credits

Physicians

Code Amended