104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3216
 
Introduced 2/18/2025, by Rep. Wayne A Rosenthal
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/246 new
    Amends the Illinois Income Tax Act. Creates an income tax credit for qualified physicians who work in hospitals, health clinics, or independently and who work in underserved areas or in rural counties or rural municipalities. Provides that the credit shall be in the amount of $5,000. Effective immediately.


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A BILL FOR
 
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1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by 
5adding Section 246 as follows:
 
6    (35 ILCS 5/246 new)
7    Sec. 246. Physicians in underserved and rural areas 
8credit.
9    (a) For taxable years beginning on or after January 1, 
102026, an individual taxpayer who is a qualified physician 
11shall be allowed a credit against the tax imposed by 
12subsections (a) and (b) of Section 201 in the amount of $5,000.
13    (b) The credit or credits may not reduce the taxpayer's 
14liability to less than zero. If the amount of the tax credit 
15exceeds the taxpayer's liability for the year, the excess may 
16not be carried forward or carried back.
17    (c) As used in this Section:
18    "Good standing" means that the Illinois State Medical 
19Board has not taken any adverse disciplinary action against 
20the person at any time and that the person has had no more than 
213 medical malpractice judgments or settlements in the 4 years 
22immediately preceding the taxable year in which the person is 
23seeking the credit.
 
 
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1    "Independent physician" means an independent physician, as 
2defined in the Hospital Licensing Act.
3    "Qualified physician" means a person who is licensed to 
4practice medicine in all of its branches under the Medical 
5Practice Act of 1987 and who, during the taxable year:
6        (1) is in good standing;
7        (2) works as a physician at a hospital, health clinic, 
8    or as an independent physician and works:
9            (A) in an area classified as an underserved area, 
10        as defined in Section 5-5 of the Economic Development 
11        for a Growing Economy Tax Credit Act; or
12            (B) in a rural county or a rural municipality; and
13        (3) provides health care services during the taxable 
14    year to at least 10 patients.
15    "Rural county" means a county that is defined by the 
16Department of Public Health's Center for Rural Health as a 
17rural county and that is either outside of a metropolitan area 
18or part of a metropolitan area with a population of fewer than 
1960,000 persons.
20    "Rural municipality" means a municipality with a 
21population of 5,000 or less.
22    (d) This Section is exempt from the provisions of Section 
23250.
 
24    Section 99. Effective date. This Act takes effect upon 
25becoming law.