Rural Practitioner Tax Credit Criteria for MDs & DOs for Tax Years 2014 & 2015
The following program rules expired December 31, 2015. Subsequent program rules begin January 1, 2016, and January 1, 2018. If you are amending for a specific tax year, you must meet the rules as they were for that tax year.
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 practitioners.
As this is an individual State of Oregon tax credit, for example, tax year 2014 is amendable until April or October 2018 (depending on when one filed one's taxes in 2014). 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 without a completed application.
Eligibility Criteria for Tax Years 2014 & 2015
- If a physician is on active staff with a hospital, it must be one of the eligible hospitals for this program. Those eligible hospitals are either state Type A, B, exceptional C, or federal Critical Access Hospital (CAH).
If a hospital is a Type B, it cannot be located in a Metropolitan Statistical Area (MSA). Oregon’s MSAs include Multnomah, Clackamas, Washington, Polk, Yamhill, Marion, Lane, Deschutes, Columbia, Benton, Linn, Josephine, and Jackson counties. There is an inclusion allowance for Type B hospitals in an MSA, which are also 30 or more miles from the major population center in the MSA, or if a Type B is in a county of fewer than 75,000 population. Currently PeaceHealth Peace Harbor in Florence is the only Type B that meets this criteria.
- Physicians who are not on the medical staff of any Oregon hospital, but whose practice is rural.
- Physicians 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 practice locations are deemed rural by the Oregon ORH.
- Physicians on staff at a rural hospital that was designated a rural referral center by the federal government before January 1, 1989, and that serves a community with a population of at least 14,000 but not more than 19,000. This applies only to Bay Area Hospital in Coos Bay and became effective on January 1, 2014. It does not apply to previous amendable tax years.
- Must provide a minimum of 20 hours per week of patient care, averaged over the month in a eligible rural area.
- Eligible physicians must attest to being willing throughout the tax year to serve patients with Medicare and Medicaid coverage. The practitioner must accept patients insured by Medicare and Medicaid until his/her patient panel reaches a threshold of 20 percent Medicare and 15 percent Medicaid, or the same percentage as in the county population if that percentage is less.
- The program's sunset date is December 31, 2015 (updated to December 31, 2017 in the 2015 Legislative Session). Should the program be discontinued at that time, a taxpayer who meets the eligibility requirements for tax year 2013, shall be allowed the credit until 2023, as long as they maintain all eligibility requirements.
- Practitioners who have spent a partial year practicing in a rural area may be eligible for a pro-rated tax credit.
- Once a practitioner is certified, the eligibility may be renewed each year if the practice site remains in an eligible area. Renewal forms are mailed automatically every January to the recipient's home address.
- Each application must be accompanied by a $45.00 processing fee.
Questions?Contact Eric Jordan: email@example.com | 503-494-4451 | 866-674-4376, but remember that we cannot make a determination on your application until we receive and review it.
How do I apply?
Request an application from Eric Jordan: firstname.lastname@example.org. Please specify in your request:
- Your licensure type: MD, DO, NP, PA, CRNA, DPM, DMD, DDS, or OD
- Where it is that you practice in Oregon (example: Columbia Memorial Hospital, Astoria)
- When it was that you began practicing at the above site/s