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Rural Practitioner Tax Credit Criteria for MDs, DOs, DPMs, NPs, PAs, and CRNAs Beginning 2014 Share This OHSU Content

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Oregon’s rural practitioner state income tax credit is authorized by Oregon Revised Statutes 315.613, 315.616, & 315.619 and implemented through Oregon Administrative rules 572-090-030. The Oregon Office of Rural Health is charged with administering this program, which grants up to $5,000 in personal income tax credits to eligible MDs, DOs, DPMs, NPs, PAs and CRNAs Following is a brief guide relating to the application process and eligibility.

Although each application is reviewed on an individual basis and determinations cannot be made over the telephone, the following practitioners may be considered eligible.

Base Criteria Beginning January 1, 2014

Bolded items below are new rules as of January 1, 2014.

  • MDs, DOs and DPMs who are on the medical staff of a Type A or Type B rural hospital so long as the Type B hospital is not located in a Metropolitan Statistical Area (MSA). Oregon’s MSAs include Multnomah, Clackamas, Washington, Polk, Yamhill, Marion, Lane, Deschutes and Jackson counties. (See: Oregon’s Rural Hospitals)
  • MDs, DOs and DPMs who are on the medical staff of a Type B rural hospital that is located in an MSA so long as the hospital is 30 or more highway miles from the major population center in the MSA. (Peace Harbor Hospital in Florence is the only Oregon hospital in this category). (See: Oregon’s Rural Hospitals)
  • MDs, DOs and DPMs who are on the medical staff of an “exceptional” Type C hospital or a Critical Access Hospital. (See: Oregon’s Rural Hospitals)
  • MDs and DOs who are not on the medical staff of any Oregon hospital, but whose practice is 60% or more “rural.”
  • MDs and DOs on the staff of an ineligible hospital, but whose practices are located outside the immediate service area of the community where the hospital is situated, whose practices are deemed “eligible” by the Office of Rural Health, and whose options for medical staff membership are limited by geographic or other circumstances to an otherwise ineligible hospital.
  • NPs and PAs whose practices are “rural.”
  • CRNAs who are employed by, or have a contractual relationship with a qualifying Critical Access, Type A, B, or exceptional C rural hospital. (See: Oregon’s Rural Hospitals)
  • Once a practitioner is certified, the eligibility may be renewed each year if the practice site remains in an eligible area.
  • Requires participation in Medicare and Medicaid Programs. Eligible practitioners must be willing throughout the tax year to serve patients with Medicare or Medicaid coverage in at least the same proportion to their total number of people in the eligible areas of their county, not to exceed 20 percent Medicare patients or 15 percent Medicaid patients. (Percentage List | Map)
  • Must provide a minimum of 20 hours per week of patient care, averaged over the month in an eligible rural area.
  • The program's current sunset date is December 31, 2015. A taxpayer who meets the eligibility requirements in ORS 315.613 for the tax year beginning on or after January 1, 2013, and before January 1, 2014, shall be allowed the credit under ORS 315.613 for any tax year:*
    • That begins on or before January 1, 2023; and
    • for which the taxpayer meets the eligibility requirements of ORS 315.613.
    *This refers to a “grandfather clause”. Those who receive the credit for Tax Year 2013 would qualify for the next 10 years, but only if they meet the new requirements that take effect on January 1, 2014.

Additional Information

Practitioners who have spent a partial year practicing in a qualifying area may be eligible for a pro-rated tax credit.

Once a practitioner is certified, the eligibility may be renewed by application each year if the practice site remains in a qualifying area.

Each application must be accompanied by a $45.00 processing fee per year, which is refunded if the application cannot be approved.

Questions? Contact , toll-free at (866) 674-4376, but remember that we cannot make a determination on your application until we receive and review it.

How soon after I submit my application or renewal can I expect a response?

You can expect to receive confirmation of your eligibility within four weeks during the months of January, February, and March and within two weeks the rest of the year.