Personal income taxes: credit: medical services: rural areas.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a tax credit for certain licensed healthcare professionals who provide medical services in rural areas of California. Qualified taxpayers, including dentists, nurse practitioners, and physicians, can claim a credit of up to $5,000 per year for income earned from providing services in these areas. The credit is available through 2032 and requires reporting to the Franchise Tax Board.
Key provisions
- Allows a credit of up to $5,000 per year for medical services performed in rural areas.
- The credit is available to specific licensed healthcare professionals (dentists, nurse practitioners, physicians, etc.).
- ‘Qualified income’ is defined as monetary compensation paid for medical services performed in a rural area.
- The credit is available for taxable years beginning January 1, 2025, through December 31, 2032.
- Excess credit can be carried over for up to seven years.
- Requires reporting of credit information to the Franchise Tax Board.
- Defines ‘medical services’ and ‘rural area’ for the purpose of the credit.
- Includes performance indicators and reporting requirements to assess the credit's effectiveness.
Who is affected
- Healthcare professionals (dentists, nurse practitioners, physicians, etc.)
- Taxpayers in rural areas of California
- The Franchise Tax Board
- Individuals receiving medical services in rural areas
Bill text
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Sponsors
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1 on record
Primary sponsor
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