Rural Practitioner Tax Credit Program FAQ'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 four weeks during the months of January, February, and March and within two weeks the rest of the year.
How much is this credit worth?
Up to $5,000.
How do I apply?
Request an application from Eric Jordan: email@example.com, or (503) 494-4451. Please specify in your request whether you are a physician (MD or DO), nurse practitioner (NP), physician assistant (PA), certified registered nurse anesthetist (CRNA), podiatrist (DPM), dentist (DMD or DDS), or optometrist (OD).
Do I need to re-apply for the credit every year?
Yes. Once your initial application has been received and your practice is determined eligible, at the end of every December you will automatically be sent a renewal by postal mail to your home address. Please inform our office if you change your home address. If you claim the credit on your tax return without submitting an application or renewal, the Department of Revenue will deny the credit.
Is there an application fee?
Yes. The fee is $45.00 per year.
When is this tax credit due to sunset?
- The program is scheduled to sunset on December 31, 2015. However, it is equally likely that the Legislature will decide to continue the program at that time.
- Even if the program sunsets in 2015, practitioners who are eligible to claim the credit for tax year 2013 will to be allowed to renew the credit through tax year 2023 as long as they continue to meet the existing eligibility criteria.
Is there a deadline for submitting an application?
Not specifically. Although new applications and renewals are mailed to practitioners in late December of each year, they can be returned at anytime throughout the year without penalty. However, remember to allow at least four weeks for a confirmation of eligibility. If your application or renewal is not received in a timely manner, you may not receive confirmation before the filing deadline in time to claim the credit on your tax return.
I just heard about the credit, but have been practicing in an eligible area for years. May I apply for prior years?
Yes. You may apply for the credit retroactively and, if determined eligible, can file amended Oregon tax returns for up to three years.
Do I have to live in Oregon to qualify for the credit?
No, but you do need to maintain a rural Oregon practice.
Do I have to practice full-time to qualify for the credit?
No, but you must work a minimum of 20 hours per week, averaged over a month's time for a month to be eligible. The credit is proratable for the months where one meets program criteria, deniable for the months where one does not.
I practice in another state as well as in rural Oregon. Could I still be eligible for the credit?
Yes. An out of state practice has no bearing on eligibility for the Oregon tax credit.
I only practiced in rural Oregon for part of the year. Will my credit be pro-rated?
For tax years up to 2013
If your only Oregon practice during the year was in a qualifying area, the confirmation letter you receive from this office will state that you are eligible for 100% of the credit. However, if you were a partial-year resident of Oregon, the Oregon Department of Revenue will pro-rate the credit, so you must multiply your credit by the Oregon percentage on Form 40N or 40P.
If you practiced part of the year in a qualifying rural area and part of the year in a non-qualifying urban area in Oregon, your credit will be pro-rated by this office and the confirmation letter you receive will reflect that.
You practiced January through June in an ineligible area and July through December in an eligible area. The confirmation letter you receive will state that you are eligible for 50% of the credit, up to $2,500
For tax years 2014 and on
One must work a minimum of 20 hours per week, averaged over a month's time for a month to be eligible. The credit is proratable for the months where one meets program criteria, deniable for the months where one does not.
Is On-call Time Allowed for this Credit?
No. The only time allowed for this credit is time spent providing direct medical care to patients. On-call time spent not practicing medicine should not be included in the reported hours. If your shift included on-call time, you will need to be able to report just the hours practicing.
Is Locum Tenens or Telemedicine Allowed for this Credit?
Yes. Locum Tenens has been allowed going back to the earliest amendable tax year, and Telemedicine is allowed beginning with tax year 2014.
For both practices, one must report each site remoted into for telemedicine or visited for Locums Tenens. If it is a patient's home address, PHI applies, so note the street address as "Patient Address" and provide the City, and Zipcode.
Averaged hours per week in each month are required for this type of work.
Is Administrative Time Eligible for this Credit?
Administrative time spent working on active patient care is allowed, say working on patients charts or the like.
What is not allowed is administrative time spent not on direct patient care, such as review board, educational, or other oversight work.
What is the electronic filing code for this credit?
The electronic filing code is 731.
May I pay the fee by credit card?
No. The fee must be paid by check or money order.
Once I receive confirmation of eligibility, how do I claim the credit on my tax return?
Contact the Oregon Department of Revenue at (800) 356-4222 from January through April or at (503) 378-4988 the rest of the year for instructions on how to claim the credit or visit their website.