Personal income taxes: credit: medical services: rural areas.

Assembly Member Tangipa's rural healthcare initiative creates a personal income tax credit for medical professionals who provide in-person services in California's rural areas, offering up to $5,000 annually per qualified provider from 2026 through 2030. The credit applies to compensation earned by licensed practitioners across thirteen medical specialties, including physicians, nurses, dentists, and mental health providers, while excluding cosmetic procedures and telehealth services.

The tax benefit allows qualifying providers to carry forward unused credit amounts for up to seven years if they exceed annual tax liability. To maintain program oversight, the Franchise Tax Board must track total credits awarded and number of recipients, with a comprehensive analysis due to the Legislature by January 2030. The credit provisions include specific reporting requirements for participating medical professionals and sunset automatically on December 1, 2031.

According to the bill's stated purpose, this tax incentive aims to expand healthcare access in underserved areas by encouraging urban medical providers to offer services in rural communities. The legislation defines eligible rural areas using existing Health and Safety Code criteria and requires practitioners to be physically present while delivering qualifying medical care.