Increases the amount of income tax credit allowed to rural medical providers.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2390
Sponsored by Representative LEVY B; Representatives ELMER, SCHARF, SMITH G, WRIGHT, Senators NASH,
WEBER (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act raises the amount of the tax credit that rural medical providers can get. The
Act also says that the provider can get the tax credit no matter how much money they make.
(Flesch Readability Score: 70.1).
Increases the amount of income tax credit allowed to rural medical providers. Removes the el-
igibility limitation based on the adjusted gross income of the medical provider.
Applies to tax years beginning on or after January 1, 2025.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax credits for rural medical providers; creating new provisions; amending ORS 315.613
and 315.616; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 315.613 is amended to read:
315.613. (1) An annual credit against the taxes otherwise due under ORS chapter 316 shall be
allowed to a resident or nonresident individual who is:
(a) Certified as eligible under ORS 442.563;
(b) Licensed under ORS chapter 677; and
(c) Engaged in the practice of medicine, and engaged for at least 20 hours per week, averaged
over the month, during the tax year in a rural practice .[; and ]
[(d) Has adjusted gross income not in excess of $300,000 for the tax year. The limitation in this
paragraph does not apply to a physician who practices as a general surgeon, specializes in obstetrics,
specializes in family or general practice and provides obstetrical services or practices emergency med-
icine in a county that is a frontier rural practice county under rules adopted by the Office of Rural
Health.]
(2) The amount of credit allowed shall be based on the distance from a major population center
in a qualified metropolitan statistical area at which the taxpayer maintains a practice or hospital
membership:
(a) If at least 10 miles but fewer than 20 miles, [ $3,000] $6,000.
(b) If at least 20 miles but fewer than 50 miles, [ $4,000] $8,000.
(c) If 50 or more miles, [ $5,000] $10,000.
(3) The credit shall be allowed during the time in which the individual retains such practice and
membership if the individual is actively practicing in and is a member of the medical staff of one
of the following hospitals:
(a) A type A hospital designated as such by the Office of Rural Health;
(b) A type B hospital designated as such by the Office of Rural Health if the hospital is:
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 988
HB 2390
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
(A) Not within the boundaries of a metropolitan statistical area;
(B) Located 30 or more miles from the closest hospital within the major population center in a
metropolitan statistical area; or
(C) Located in a county with a population of less than 75,000;
(c) A type C rural hospital, if the Office of Rural Health makes the findings required by ORS
315.619;
(d) A rural critical access hospital; or
(e) A hospital:
(A) Classified by the Centers for Medicare and Medicaid Services as a rural referral center in
accordance with 42 U.S.C. 1395ww(d)(5)(C)(i); and
(B) Classified by the Centers for Medicare and Medicaid Services as a sole community hospital
in accordance with 42 U.S.C. 1395ww(d)(5)(D)(iii).
(4) In order to claim the credit allowed under this section, the individual must remain willing
during the tax year to serve patients with Medicare coverage and patients receiving medical as-
sistance in at least the same proportion to the individual’s total number of patients as the Medicare
and medical assistance populations represent of the total number of persons determined by the Of-
fice of Rural Health to be in need of care in the county served by the practice, not to exceed 20
percent Medicare patients or 15 percent medical assistance patients.
(5) A nonresident individual shall be allowed the credit under this section in the proportion
provided in ORS 316.117. If a change in the status of a taxpayer from resident to nonresident or from
nonresident to resident occurs, the credit allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(6) For purposes of this section, an “individual’s practice” shall be determined on the basis of
actual time spent in practice each week in hours or days, whichever is considered by the Office of
Rural Health to be more appropriate. In the case of a shareholder of a corporation or a member of
a partnership, only the time of the individual shareholder or partner shall be considered and the full
amount of the credit shall be allowed to each shareholder or partner who qualifies in an individual
capacity.
(7) As used in this section:
(a) “Qualified metropolitan statistical area” means only those counties of a metropolitan statis-
tical area that are located in Oregon if the largest city within the metropolitan statistical area is
located in Oregon.
(b) “Rural critical access hospital” means a facility that meets the criteria set forth in 42 U.S.C.
1395i-4 (c)(2)(B) and that has been designated a critical access hospital by the Office of Rural Health
and the Oregon Health Authority.
(c) “Type A hospital,” “type B hospital” and “type C hospital” have the meaning for those terms
provided in ORS 442.470.
SECTION 2.
ORS 315.616, as amended by section 47a, chapter 73, Oregon Laws 2024, is
amended to read:
315.616. A resident or nonresident individual who is certified as eligible under ORS 442.561,
442.562, 442.563 or 442.564, and is licensed as a physician under ORS chapter 677, licensed as a
physician associate under ORS 677.505 to 677.525, licensed as a nurse practitioner under ORS
678.375 to 678.390, licensed as a certified registered nurse anesthetist as defined in ORS 678.010, li-
censed as a dentist under ORS chapter 679 or licensed as an optometrist under ORS 683.010 to
683.340 is entitled to the tax credit described in ORS 315.613 even if not a member of the hospital
[2]
HB 2390
1
2
3
4
5
6
7
8
9
10
11
12
13
14
medical staff if the Office of Rural Health certifies that the individual:
(1) Is engaged for at least 20 hours per week, averaged over the month, during the tax year in
a rural practice; and
(2)(a) If a physician or a physician associate, can cause a patient to be admitted to the hospital;
(b) If a certified registered nurse anesthetist, is employed by or has a contractual relationship
with one of the hospitals described in ORS 315.613 [ (1)] (3); or
(c) If an optometrist, has consulting privileges with a hospital listed in ORS 315.613 [ (1)] (3) .
This paragraph does not apply to an optometrist who qualifies as a “frontier rural practitioner,” as
defined by the Office of Rural Health.
SECTION 3.
The amendments to ORS 315.613 by section 1 of this 2025 Act apply to tax
years beginning on or after January 1, 2025.
SECTION 4. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
[3]