Illinois General Assembly - Full Text of HB3216

LRB104 08922 HLH 18977 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3216

Introduced 2/18/2025, by Rep. Wayne A Rosenthal

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Creates an income tax credit for qualified physicians who work in hospitals, health clinics, or independently and who work in underserved areas or in rural counties or rural municipalities. Provides that the credit shall be in the amount of $5,000. Effective immediately.

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 246 as follows:

(35 ILCS 5/246 new)

Sec. 246. Physicians in underserved and rural areas credit.

(a) For taxable years beginning on or after January 1, 2026, an individual taxpayer who is a qualified physician shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in the amount of $5,000.

(b) The credit or credits may not reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the taxpayer's liability for the year, the excess may not be carried forward or carried back.

(c) As used in this Section:

"Good standing" means that the Illinois State Medical Board has not taken any adverse disciplinary action against the person at any time and that the person has had no more than 3 medical malpractice judgments or settlements in the 4 years immediately preceding the taxable year in which the person is seeking the credit.

"Independent physician" means an independent physician, as defined in the Hospital Licensing Act.

"Qualified physician" means a person who is licensed to practice medicine in all of its branches under the Medical Practice Act of 1987 and who, during the taxable year:

(1) is in good standing;

(2) works as a physician at a hospital, health clinic, or as an independent physician and works:

(A) in an area classified as an underserved area, as defined in Section 5-5 of the Economic Development for a Growing Economy Tax Credit Act; or

(B) in a rural county or a rural municipality; and

(3) provides health care services during the taxable year to at least 10 patients.

"Rural county" means a county that is defined by the Department of Public Health's Center for Rural Health as a rural county and that is either outside of a metropolitan area or part of a metropolitan area with a population of fewer than 60,000 persons.

"Rural municipality" means a municipality with a population of 5,000 or less.

(d) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.