§ 40-18-523 — (Repealed by Act 2023-519, § 8, Effective September 29, 2031) Tax Credit for Community-Based Faculty Preceptors

Alabama § 40-18-523

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 18: Income Taxes
• Art. 26: Preceptor Tax Incentive Program Act

Text

(a)(1) Beginning with the 2024 tax year, a community-based faculty preceptor, if he or she conducts a clinical preceptorship, shall be allowed a credit against the tax imposed by Section 40-18-2, in the following amounts:
a. A community-based physician, dentist, or optometrist preceptor shall be allowed a credit of five hundred dollars ($500) per rotation, up to an annual maximum of six thousand dollars ($6,000).
b. A community-based assistant to physician preceptor shall be allowed a credit of four hundred twenty-five dollars ($425) per rotation, up to an annual maximum of five thousand one hundred dollars ($5,100).
c. A community-based advance practice nurse preceptor shall be allowed a credit of four hundred twenty-five dollars ($425) per rotation, up to an annual maximum of five thousand one hundred dollars ($5,100).
(2) An individual may not accrue more than 12 clinical preceptorships in any combination of the categories described in subdivision (1) in one calendar year.
(b) A community-based faculty preceptor may not earn hours credited toward the tax credit pursuant to subsection (a) unless the clinical preceptorship has been certified by the Alabama Statewide Area Health Education Centers Program Office as eligible for the credit.
(c)(1) To receive the credit provided by this article, a community-based faculty preceptor shall claim the credit on his or her state income tax return for the tax year in which he or she completed the clinical preceptorship rotation; shall certify that he or she, and the health care center or facility through which he or she is employed, did not receive monetary payment during the tax year from any source for the training of medical, optometry, dental, physician assistant, anesthesia assistant, or certified registered nurse practitioner, certified nurse midwife, and certified registered nurse anesthetist students; and shall submit supporting documentation, including certification obtained from the Alabama Statewide Area Health Education Centers Program Office, to the Department of Revenue.
(2) Failure to provide the required documents shall result in the automatic denial of the credit.
(d) In no event shall the total amount of the tax credit provided by this section for a taxable year exceed the income tax liability of the taxpayer. No tax credit shall be allowed the taxpayer against his or her tax liability for prior or succeeding years.
(e) Adjudication of possible filing errors or violations of this article shall be determined by the Department of Revenue.

Legislative History

(Act 2023-519, §4.)