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REFERENCE TITLE: rural health providers; tax credit |
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State of Arizona House of Representatives Fifty-fifth Legislature First Regular Session 2021
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HB 2636 |
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Introduced by Representatives Shah: Teller
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AN ACT
Amending section 43‑222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43‑1075; relating to individual income tax credits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 43-222, Arizona Revised Statutes, is amended to read:
43-222. Income tax credit review schedule
The joint legislative income tax credit review committee shall review the following income tax credits:
1. For years ending in 0 and 5, sections 43‑1079.01, 43‑1087, 43‑1088, 43‑1089.04, 43‑1167.01 and 43‑1175.
2. For years ending in 1 and 6, sections 43‑1072.02, 43‑1074.02, 43‑1075, 43‑1083, 43‑1083.02, 43‑1164.03 and 43‑1183.
3. For years ending in 2 and 7, sections 43‑1073, 43‑1085, 43‑1086, 43‑1089, 43‑1089.01, 43‑1089.02, 43‑1089.03, 43‑1164 and 43‑1169.
4. For years ending in 3 and 8, sections 43‑1074.01, 43‑1081, 43‑1168, 43‑1170 and 43‑1178.
5. For years ending in 4 and 9, sections 43‑1073.01, 43‑1076, 43‑1081.01, 43‑1083.03, 43‑1084, 43‑1164.04, 43‑1164.05, and 43‑1184.
Sec. 2. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1075, to read:
43-1075. Credit for rural health care providers; certificate; definition
A. For taxable years beginning from and after December 31, 2021, A credit is allowed against the taxes imposed by this title for a taxpayer who meets the following requirements:
1. Is one of the following:
(a) A physician licensed pursuant to title 32, chapter 13 or 17.
(b) A dentist licensed pursuant to title 32, chapter 11.
(c) A clinical psychologist licensed pursuant to title 32, chapter 19.1.
(d) A podiatrist licensed pursuant to title 32, chapter 7.
(e) An optometrist licensed pursuant to title 32, chapter 16.
(f) A dental hygienist as defined in section 32‑1201.
(g) A physician assistant as defined in section 32‑2501.
(h) certified nurse midwife as defined in section 32‑1601.
(i) Certified registered nurse anesthetist as defined in section 32‑1601.
2. Has practiced in a rural area as defined in section 36‑2171 and federally designated health professional shortage area in this state as defined under 42 Code of Federal Regulations section 5.2 during the entire taxable year.
3. Obtains a certificate from the department of health services pursuant to subsection C of this section.
B. The amount of the credit is equal to the following:
1. $5,000 for a physician, dentist, clinical psychologist, podiatrist or optometrist who practices at a practice site for at least two thousand eighty hours during the taxable year.
2. $3,000 for a dental hygienist, physician assistant, certified nurse midwife or Certified registered nurse anesthetist who practices at a practice site for at least two thousand eighty hours during the taxable year.
3. $2,500 for a physician, dentist, clinical psychologist, podiatrist or optometrist who practices at a practice site for at least one thousand forty hours but less than two thousand eighty hours during the taxable year.
4. $1,500 for a dental hygienist, physician assistant, certified nurse midwife or Certified registered nurse anesthetist who practices at a practice site for at least one thousand forty hours but less than two thousand eighty hours during the taxable year.
C. Before a taxpayer may claim the credit allowed under this section, the taxpayer shall submit an application to the department of health services that describes the taxpayer's clinical practice and contains additional information as the department of health services may require. The department of health services shall determine whether the taxpayer qualifies for the credit allowed under this section and shall issue a certificate to each qualified taxpayer. The department of health services shall provide the department of revenue with appropriate information for all eligible taxpayers to whom certificates are issued.
D. A taxpayer who claims the credit allowed under this section shall submit a copy of the certificate issued pursuant to subsection C of this section with the taxpayer's income tax return for the taxable year.
E. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry forward the amount of the claim not used to offset the taxes under this title for not more than three consecutive taxable years' income tax liability.
F. For the purposes of this section, "Practice site" means a private practice, public health clinic, hospital or public or private nonprofit primary care clinic or other health care service location in a rural area as defined in section 36‑2171 and federally designated health professional shortage area in this state as defined under 42 Code of Federal Regulations section 5.2 during the entire taxable year.
Sec. 3. Purpose
Pursuant to section 43‑223, Arizona Revised Statutes, the legislature enacts section 43‑1075, Arizona Revised Statutes, as added by this act, to support health care providers in rural and medically underserved areas in this state.