Income tax, state; credit for certain health care providers.

Plain English Breakdown

The exact definition of eligible health care providers is not provided in the given official summary.

Income Tax Credit for Health Care Providers

This law creates a nonrefundable income tax credit to help certain health care providers who work in underserved communities.

What This Bill Does

• Creates a nonrefundable individual income tax credit for eligible health care providers working in medically underserved areas identified by the Board of Health.
• Sets the amount of the credit at $5,000 if providers work 1,600 hours or more and $2,500 for 700 to 1,599 hours in a year.
• Limits each provider to claiming this credit for only two taxable years.
• Caps the total amount of credits given out at $5 million per year.

Who It Names or Affects

• Health care providers working in underserved communities
• Individuals who file Virginia state income taxes

Terms To Know

Nonrefundable tax credit

A reduction in the amount of tax owed, but it cannot result in a refund if the credit is more than the tax owed.

Underserved community

An area within Virginia identified by the Board of Health as medically underserved.

Limits and Unknowns

• The bill only applies to taxable years from 2026 through 2030.
• It is unclear how many health care workers will qualify for this credit.

Official Summary Text

Income tax; credit for certain health care providers.
Provides, for taxable years 2026 through 2030, a nonrefundable individual income tax credit for eligible health care providers, defined in the bill, who provide health care in an underserved community during the taxable year. The bill defines "underserved community" as an area within the Commonwealth identified by the Board of Health as medically underserved.

The amount of the credit shall equal $5,000 if the eligible health care provider provided at least 1,600 hours of health care in an underserved community during the taxable year or $2,500 if the eligible health care provider provided at least 800 hours of health care in an underserved community during the taxable year. The bill provides that such providers shall only be allowed to claim such credit for two taxable years. The aggregate amount of credits allowable under the provisions of the bill shall not exceed $5 million per taxable year.

Current Bill Text

HB 1123

SUBCOMMITTEE

1. Line 19, introduced, after
54.1-3000
;

insert

pharmacist, as such term is defined in §
54.1-3300
; physical therapist, as such term is defined in §
54.1-3473
;