New tax break moving for rural doctors, dentists
Legislation offering a new tax break to physicians and dentists who opt to practice in rural areas is moving quickly through the Georgia General Assembly this year.
House Bill 82, sponsored by Rep. Mack Jackson, D-Sandersville, passed that chamber with just one “no” vote last year but ran out of time to cross over. Last Monday it cleared the Senate Finance Committee chaired by Sen. Chuck Hufstetler, R-Rome.
Hufstetler and other members had indicated support for the measure when Jackson first presented it last week. However, they requested a few updates, primarily focused on the dates used in the 2023 version.
“Let's hash this out and bring you back,” Hufstetler said, and Jackson readily agreed.
The bill passed out of committee in two parts. One phases out the existing $5,000 tax break for physicians already practicing in rural counties, setting a deadline of May 15 to qualify for the five-year program. The second creates a new program for physicians and dentists who start practicing in rural counties after May 15.
Hufstetler said it's aimed at both retaining physicians already there and recruiting new doctors and dentists to the communities.
Under HB 82, a rural county will be defined by a population of less than 50,000 according to the latest census data. In counties with military installations, military personnel and their dependents are not counted. However, the first section maintains the definition of no more than 65 people per square mile for physicians qualifying under the current program.
The new program allows for a tax break of up to $5,000 a year for every 12 months of practice in the rural county, for up to five years.
“This will allow us to incentivize recruitment of medical students to our rural communities and keep them,” Jackson said.
Hufstetler said the program would have a minimal impact on the state budget — it's capped at $2 million a year — and it automatically expires Dec. 31, 2029. He and his committee have been pressing for sunset dates on all new tax breaks.
“Just because they look great, we'd still like an opportunity to look at them again,” he said at the hearing last week. The idea is that they can be renewed if they are showing their worth but won't become forgotten and entrenched in the state tax code.
The bill now moves to the Senate Rules Committee, which sets the schedule for floor votes by the full Senate. Due to the amendments in the language, it will have to return to the House for ratification of the changes.