Rural Practitioner Tax Credit Criteria for PAs Beginning Tax Year 2018

MDs-landing
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 personal income tax credits to eligible MDs & DOs. 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.

Eligibility Criteria Beginning January 1, 2016

The definitions below reference maximum credit tiers (as a spreadsheet — Excel | PDF — and a map). Bolded lines are new rules beginning tax year 2018.

  • PAs whose practice is rural.
  • Must provide a minimum of 20 hours per week of patient care, averaged over the month in a eligible rural area.
  • Has adjusted gross income (filing individually or jointly) not in excess of $300,000 for the tax year.
  • Eligible PAs 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.
  • There are now tiers that dictate the maximum possible tax credit amount. Those tiers are as follows based upon the location of your practice site (measured in a straight line, not road miles):
    • 10-20 miles from the centroid of a community with a population of 40,000 or more = $3,000
    • 20-50 miles from the centroid of a community with a population of 40,000 or more = $4,000
    • 50+ miles from the centroid of a community with a population of 40,000 or more = $5,000

    If an eligible practitioner meets the criteria of more than one tier, the maximum possible credit would be that of the higher tier.

  • The program's sunset date is December 31, 2021. Should the program be discontinued at that time, a taxpayer who meets the eligibility requirements for tax year 2021, could be allowed the credit through tax year 2030, as long as they maintain all eligibility requirements.
  • An eligible taxpayer may not claim the credit for more than a total of 10 tax years beginning on or after January 1, 2018.
  • 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 or renewal form must be accompanied by an annual $45.00 processing fee.

Questions?

Contact Eric Jordan | | (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: . 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

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

You can expect to receive confirmation of your eligibility within six weeks (but probably sooner) during the months of January, February, and March and within two weeks the rest of the year.