The bill amends the existing rural physician income tax credit program in Alabama by designating Sections 40-18-130 through 40-18-133 as Division 1 of Article 4A and terminating this division's tax credit effective December 31, 2025, instead of the previously set date of December 31, 2028. The bill also introduces Division 2 to Article 4A, which establishes a new rural physician income tax credit for tax years beginning January 1, 2026, and ending December 31, 2030. This new credit allows qualifying rural physicians to claim a tax credit of $10,000 per year for up to four years, with specific eligibility criteria outlined for those who have previously claimed credits under Division 1.

Additionally, the bill mandates that the Alabama Statewide Area Health Education Center Program Office, in collaboration with the State Board of Medical Examiners, will certify physicians eligible for the new tax credit. It also includes provisions for annual reporting and evaluation of the program's effectiveness. The existing Division 1 will be repealed on December 31, 2030, ensuring a transition to the new structure while aiming to enhance the recruitment and retention of physicians in rural Alabama communities. The act is set to take effect on October 1, 2025, with the repeal of Division 1 occurring at the end of 2030.

Statutes affected:
Introduced: 40-18-130, 40-18-131, 40-18-132, 40-18-133
Engrossed: 40-18-130, 40-18-131, 40-18-132, 40-18-133