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Doctors practicing in rural areas of Oklahoma would qualify for up a tax credit up to $25,000, under legislation passed by the House.
House Bill 2089, by House Speaker Charles McCall and Speaker Pro Tempore Terry O’Donnell, would grant the tax credit on income from compensation directly related to the practice of medicine or osteopathic medicine by a qualifying physician. The bill now advances to the Oklahoma Senate.
HB 2089 defines qualifying doctor as a medical doctor or osteopathic physician who is licensed in Oklahoma on, after, or at any time within the two years prior to Jan. 1, 2022, but not earlier than Jan. 1, 2020; and has graduated from a college of medicine or has completed residency in Oklahoma. In addition, the doctor’s primary residence must be located in the same county as the qualifying rural area, or within the jurisdiction of a federally recognized tribe and directly employed by a tribally owned or operated health facility or federal Indian Health Service facility.
Doctors qualifying for the tax credit would be allowed to receive it for four subsequent years as long as they remain qualified. There would be a $1 million cap on the cumulative total of credits that could be claimed in any one year.
The measure defines rural area as a municipality or unincorporated location that has a population not exceeding 25,000, as determined by the most recent federal census, and is at least 25 miles from the boundary of the nearest municipality in Oklahoma with a population exceeding 25,000.
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