AB-1431
Health & Public Health

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

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Establishes a $5,000 annual tax credit for medical professionals who provide services in rural California areas.
  • Applies to licensed healthcare providers including doctors, nurses, dentists, and therapists from 2026 through 2030.
  • Excludes telehealth services and cosmetic procedures from qualifying for the tax credit.
  • Requires the Franchise Tax Board to report on program effectiveness by January 2030.

Summary

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.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Revenue and Taxation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Revenue and Taxation
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Introduced. To print.

Contacts

Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tina McKinnorD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tri TaR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Profile
Mike GipsonD
Assemblymember
Committee Member
Profile
Tina McKinnorD
Assemblymember
Committee Member
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Carl DeMaioR
Assemblymember
Committee Member
Profile
Robert GarciaD
Assemblymember
Committee Member
Profile
David TangipaR
Assemblymember
Bill Author

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

David Tangipa
David TangipaR
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

Key Takeaways

  • Establishes a $5,000 annual tax credit for medical professionals who provide services in rural California areas.
  • Applies to licensed healthcare providers including doctors, nurses, dentists, and therapists from 2026 through 2030.
  • Excludes telehealth services and cosmetic procedures from qualifying for the tax credit.
  • Requires the Franchise Tax Board to report on program effectiveness by January 2030.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

David Tangipa
David TangipaR
California State Assembly Member

Summary

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.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/21/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Revenue and Taxation
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Revenue and Taxation
Hearing has not been scheduled yet
Introduced
Assembly Floor
Introduced
Introduced. To print.

Contacts

Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tina McKinnorD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Tri TaR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Sharon Quirk-SilvaD
Assemblymember
Committee Member
Profile
Mike GipsonD
Assemblymember
Committee Member
Profile
Tina McKinnorD
Assemblymember
Committee Member
Profile
Jasmeet BainsD
Assemblymember
Committee Member
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Carl DeMaioR
Assemblymember
Committee Member
Profile
Robert GarciaD
Assemblymember
Committee Member
Profile
David TangipaR
Assemblymember
Bill Author