Ga. Comp. R. & Regs. R. 560-7-8-.70 - Rural Health Care Professional Credit

(1) Purpose. This regulation provides guidance concerning the implementation and administration of the rural health care professional credit under O.C.G.A. § 48-7-29.26.

(2) Definitions. As used in this regulation:

(a) As used in this regulation, the terms "dentist", "physician", "rural county", and "rural health care professional" have the same meaning as in O.C.G.A. § 48-7-29.26.

(b) "Credit certificate number" means the certificate number issued by the Department to an individual taxpayer approved for the rural health care professional credit and used by such taxpayer to claim the credit on the income tax return.

(c) "Final year" means the taxable year during which the dentist or physician no longer qualifies as a rural health care professional or the fifth taxable year that the dentist or physician is allowed the credit under O.C.G.A. § 48-7-29.26.

(d) "Rural physician credit" means the credit provided under O.C.G.A. § 48-7-29.

(3) Credit Amount.

(a) A dentist or physician qualifying as a rural health care professional after May 15, 2024, shall be allowed a credit against the tax imposed by O.C.G.A. § 48-7-20 in the amount of $5,000 for each 12-month period of employment as a rural health care professional. The credit may be claimed each year for up to five taxable years as long as the dentist or physician continues to qualify as a rural health care professional.

1. The credit amount as provided in subparagraph (3)(a) shall be prorated on a monthly basis using 30-day periods for the first year of qualification as a rural health care professional.

(i) Example. A dentist first qualifies as a rural health care professional on June 13, 2024, and continues to work as a rural health care professional through December 31, 2024. The dentist worked as a rural health care professional for 202 days for the first year of qualification as a rural health care professional. The dentist is eligible for a prorated credit amount of $2,500 based on six (6) months of employment as a rural health care professional.

2. The credit amount as provided in subparagraph (3)(a) shall be prorated on a monthly basis using 30-day periods for the final year of qualification as a rural health care professional.

(i) Example. A dentist first qualifies as a rural health care professional on June 13, 2024, and continues to work as a rural health care professional until the dentist stops working as a rural health care professional on August 10, 2028. The dentist worked as a rural health care professional for 222 days for the final year of qualification as a rural health care professional. The dentist is eligible for the credit amounts for each year as follows:

2024 = $2,500

2025 = $5,000

2026 = $5,000

2027 = $5,000

2028 = $2,917

(4) Credit Limitations.

(a) A dentist or physician who qualifies as a rural health care professional on or before May 15, 2024, shall not be eligible for the rural health care professional credit unless after May 15, 2024, the dentist or physician returns to practice in a rural county after having practiced in a county other than a rural county for at least three years.

1. A physician practices and resides in a rural county on February 1, 2024. The physician then starts practicing in a county other than a rural county on April 1, 2024. On April 2, 2027, the physician returns to practice in a rural county again. The physician is eligible for the rural health care professional credit in 2027.

(b) No individual taxpayer shall be allowed both the rural health care professional credit and the rural physician credit in the same taxable year.

(c) Each individual taxpayer shall be limited to a total of five taxable years of the rural health care professional credit and the rural physician credit combined.

(d) In no event shall the amount of the tax credit exceed the taxpayer's income tax liability, and any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.

(5) Credit Cap. In no event shall the aggregate amount of tax credits allowed for rural health care professionals exceed $2 million per taxable year.

(6) Preapproval for the Credit. All taxpayers must be preapproved to claim the rural health care professional credit and must submit the appropriate forms to the Department through the Georgia Tax Center as provided in this paragraph.

(a) For each taxable year for which a taxpayer seeks to claim the rural health care professional credit, the taxpayer must electronically submit the preapproval application through the Georgia Tax Center to request preapproval from the Department. The Department will not preapprove any rural health care professional credit where the preapproval application is submitted or filed in any other manner.

(b) The preapproval application shall be submitted in the year following the taxable year for which the rural health care professional credit is sought.

1. Example. A taxpayer worked as a rural health care professional in 2024. The taxpayer will submit a preapproval application in 2025 to be preapproved for the 2024 rural health care professional credit.

(c) Each individual taxpayer must submit a preapproval application for his or her employment as a rural health care professional regardless of whether he or she files separately or jointly with another taxpayer.

(d) The preapproval application shall include the following information:

1. The name, address and taxpayer identification number of the taxpayer;

2. The county where the taxpayer worked as a rural health care professional;

3. The first day of employment as a rural health care professional;

4. The months of employment as a rural health care professional in the taxable year;

5. Whether the taxpayer worked as a rural physician or claimed the rural physician credit before May 15, 2024;

6. If applicable, the number of years the rural physician credit was claimed;

7. Whether the taxpayer worked in a non-rural county on or after May 15, 2024;

8. If applicable, the non-rural county where the taxpayer worked and the first and last day that the taxpayer worked in that non-rural county

9. Any other information the Commissioner of the Department of Revenue may require; and

10. Certification that all information contained on the preapproval application is true to his or her best knowledge and belief and is submitted for the purpose of obtaining preapproval from the Commissioner.

(e) The rural health care professional credit shall be allowed on a first-come, first-served basis. The date the preapproval application is electronically submitted shall be used to determine such first-come, first-served basis.

(f) The Department will notify each individual taxpayer of the tax credits preapproved and allocated to such taxpayer, along with the credit certificate number, within thirty (30) days from the date the preapproval application was received.

(g) On the day any preapproval application is received for a taxable year that causes the aggregate credit cap in paragraph (5) of this regulation to be reached, the remaining tax credits shall be allocated among the applicants who submitted the preapproval application on the day the aggregate credit cap was exceeded on a pro rata basis based upon the amounts otherwise allowed by O.C.G.A. § 48-7-29.26 and this regulation. Only credit amounts on the preapproval application(s) received on the day the aggregate credit cap was exceeded shall be allocated on a pro rata basis.

(h) In the event it is determined that the individual taxpayer has not met all the requirements of O.C.G.A. § 48-7-29.26, then the amount of the rural health care professional credit shall not be preapproved or the preapproved rural health care professional credit shall be retroactively denied. With respect to such denied credit, tax, interest, and penalties shall be due if the rural health care professional credit has already been claimed.

(i) Once the aggregate credit cap is reached for a taxable year, taxpayers shall no longer be eligible for a credit pursuant to O.C.G.A. § 48-7-29.26 for such taxable year. If any preapproval application is received after the aggregate credit cap has been reached, then it shall be denied and not be reconsidered for preapproval at any later date.

(7) Claiming the Credit. A taxpayer claiming the rural health care professional credit, unless indicated otherwise by the Commissioner, must claim the credit on Schedule 2 of the Georgia Form 500, Individual Income Tax Return. Each individual taxpayer must use the credit code 154 and include the credit certificate number for the credit. If both taxpayers are claiming the credit on a married filing joint return, then both credit certificate numbers must be included on the return.

(8) List of Rural Counties. The list of rural counties for purposes of the rural health care professional credit is provided on the following webpage: https://dor.georgia.gov/listing-rural-counties-purposes-rural-physician-credit.

(9) Sunset Date. O.C.G.A. § 48-7-29.26, the rural health care professional credit, shall be repealed on December 31, 2029.

(10) Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2024.

Notes

Ga. Comp. R. & Regs. R. 560-7-8-.70

O.C.G.A. §§ 48-2-12, 48-7-29.26.

Original Rule entitled "Rural Health Care Professional Credit" adopted. F. June 4, 2025; eff. June 24, 2025.