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 six weeks (but probably sooner) during the months of January, February, and March and within two weeks the rest of the year.
How soon after I receive confirmation of my credit may I file my state return?
NOTE: The earliest date the Oregon Department of Revenue will begin processing tax year 2016 returns is January 19, 2017. Follow the instructions on the confirmation you receive from the Office of Rural Health (ORH) very carefully. That confirmation will include specific instructions of when it’s OK to submit your return. If you submit your return too early, it could result in a denial of your tax credit.
Due to software used by the Oregon Department of Revenue (DOR), there must be a lag in time from the date ORH processes & submits your credit information to DOR to when it is okay for you to file your return. If you file prior to the date specified on your ORH confirmation, you could run the risk of the DOR software automatically denying your claim for the credit because the DOR system might not yet have recorded the ORH submission.
For ORH processing lead times, please see the question above this one.
How much is this credit worth?
For tax years through 2015, up to $5,000.
For tax years beginning with 2016:
- 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.
How do I apply?
Request an application from Eric Jordan: email@example.com. 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
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, every January 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's sunset date is December 31, 2017. Should the program be discontinued at that time, a taxpayer who meets the eligibility requirements for tax year 2017, shall be allowed the credit until 2027, as long as they maintain all eligibility requirements.
Is there a deadline for submitting an application?
Not specifically. Although new applications and renewals are mailed to practitioners in January 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 spent 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.
What is not allowed is administrative time spent not on direct patient care, such as review board, educational, or other oversight work. Travel time is also not allowable.
What is the electronic filing code for this credit?
The electronic filing code for all years leading up to and including 2014 is 731. Beginning with 2015, the code is 813.
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.