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

Assembly Member Tangipa proposes a new tax credit for medical professionals who provide services in California's rural areas, offering up to $5,000 annually against their state income tax liability. The credit would apply to income earned by licensed healthcare providers - including physicians, nurses, dentists, and various allied health professionals - for services performed in designated rural regions between 2025 and 2032.

The measure establishes specific eligibility criteria and administrative procedures. Qualified taxpayers must earn income from an employer for medical services delivered under their professional license in areas meeting the state's rural designation. If the credit exceeds their tax liability in a given year, providers may carry the excess forward for up to seven years. The Franchise Tax Board would oversee implementation, with authority to require documentation from credit recipients.

According to the bill's legislative findings, this tax incentive aims to expand healthcare access in underserved rural communities by encouraging urban medical providers to offer care in these areas. The credit would expire on December 1, 2032, allowing policymakers to evaluate its impact on rural healthcare delivery before considering extension or modification.