Small Town Health Professional Tax Credit Program

Rewarding Rural

Tax Incentives for Healthcare Professionals in Rural Louisiana

The Small Town Health Professional Tax Credit Program provides a nonrefundable, individual income tax credit for certified healthcare professionals practicing in rural areas throughout Louisiana equivalent to the tax due, or $3,600.00 in total for the tax period deemed eligible.

Applications for the Small Town Health Professional Tax Credit Program are now open!

Eligibility Requirements

The program accepts eligible applicants who serve in designated Health Professional Shortage Areas (HPSAs) and meet the facility/provider requirements outlined in the guidance.

To determine if you are in a designated HPSA are, use the RHIhub’s Am I Rural? tool.

  1. Enter practice site address and click “Locate.”
  2. Once your location appears on the map, click “Run Report.”
  3. Look in the “Program Eligibility” section CMS for a YES in the “Rural” column.
  4. Look in the “Shortage Designation” section to make sure your practice site does have a HPSA designation for your provider type.

 

Note: If your practice site meets both of these criteria, click “Save as PDF.” You will need to attach this report to your application.

Applications are open to certified medical primary healthcare professionals including:

  • Physicians possessing an unrestricted license by the State of Louisiana to practice medicine
  • Dentists licensed by the State of Louisiana to practice dentistry
  • Primary care nurse practitioners licensed by the State of Louisiana
  • Primary care physician assistants
  • Optometrist

The healthcare professional must adhere to the following:

  • Establish and maintain the primary office of their practice which is, as determined by Well-Ahead Louisiana through annual application:
    • For medical physicians, nurse practitioners, physician assistants, and optometrist an area that is a primary care high needs geographic HPSA, or for dentists, a Dental Health Professional Shortage Area (DHPSA), as designated by the U.S. Department of Health and Human Services’ Health Resources and Services Administration’s Bureau of Health Workforce, Division of Policy and Shortage Designation (DPSD)
    • Eligible healthcare professionals, excluding dentists and optometrists, must accept both Medicaid and Medicare payments for services rendered. For clarification, eligible dentists and optometrists must contact Well-Ahead in the form located at the bottom of the page.
  • The certified medical healthcare professional must practice under the conditions set forth above for a period of not less than three tax years. In addition, the health professional must submit an annual application and receive certification from Well-Ahead for each calendar year in order to claim the credit for the corresponding tax year. Under no circumstances shall a taxpayer receive the credit for more than one relocation or more than five tax years.

Applications will be considered for the credit on a first-come, first-served basis as determined by the postmarked or received date of a completed application. An application shall not be considered received until all information requested by Well-Ahead has been submitted.

Application Information

The application period is September 1, 2021 through October 31, 2021. All applications received during this timeframe will be considered for eligibility. Applications will not be accepted prior or subsequent to the application period.

Before beginning the online application, have available: 

  • The last four digits of your Social Security number
  • Scanned copy of your current medical license 
  • Medical License number 
  • NPI number 
  • Medicaid/Medicare numbers 
  • Saved “Am I Rural” report (For details, refer to the application qualifications section) 
  • Patient information including:
    • The number of patients you examine daily/annually
    • Total number of Medicaid patients
    • Total number of Medicare patients
    • Total number of uninsured patients
    • Total number of sliding fee scale/indigent patients

The eligible health professional must the following criteria in order to be eligible. Note: Additional information may be asked from the applicant after submission.

  1. Possess a current license in Louisiana for the tax year applying for as a:
    1. Primary Care Physician (Establish and maintain, after July 1, 1991) Includes:
      1. Family Practice (FP)
      2. General Practice
      3. Internal Medicine (IM)
      4. Pediatrics (PD)
      5. Obstetrics/Gynecology (OB/GYN)
    2. Primary Care Nurse Practitioner (Establish and maintain, after July 1, 1991) Includes:
      1. Family Practice (FP)
      2. General Practice
      3. Internal Medicine (IM)
      4. Pediatrics (PD)
      5. Obstetrics/Gynecology (OB/GYN)
    3. Primary Care Physician Assistant (Establish and maintain, after July 1, 2019) Includes:
      1. Family Practice (FP)
      2. General Practice
      3. Internal Medicine (IM)
      4. Pediatrics (PD)
      5. Obstetrics/Gynecology (OB/GYN)
    4. Dentist (Establish and maintain, after July 1, 2002)
    5. Optometrist (Establish and maintain, after July 1, 2019)
  2. The practice site must be located in a rural area referred to as a Health Professional Shortage Area (HPSA). Please refer to the “Am I Rural?” section to determine if you are in a rural area.
  3. Eligible healthcare professionals, excluding dentists and optometrists, must accept both Medicaid and Medicare. Dentists and optometrists must accept Medicaid. For clarification, please contact Well-Ahead in the form located at the bottom of the page.

Program Terms

Revised Statute 47:297(H) authorizes a credit for a certified medical primary care health professional who is practicing as a physician, dentist or primary care nurse practitioner and who meets certain requirements. The secretary is authorized by R.S. 47:297(H)(5) to establish the method of allocating and reserving available tax credits to primary health care professionals for a specific time period. The purpose of this regulation is to provide the requirements and procedures for applying for and reserving tax credits as well as the time periods applicable for claiming any tax credits so authorized. 

The program allows for approved applications to receive a nonrefundable tax credit with no carryforward equal to the lesser of the tax due or thirty-six hundred dollars ($3,600), unless subject to proration, for the tax period deemed eligible. In the event the taxpayer is subject to proration due to the credit cap provisions, the taxpayer shall only be eligible for a credit equal to the pro rata amount for the tax period deemed eligible.

Frequently Asked Questions

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Yes, applicants must submit an annual application and receive certification from Well-Ahead for each calendar year in order to claim the credit for the corresponding tax year.

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There is a limited amount of allowable tax credit. For each calendar year, the Department of Revenue shall not grant total credits in excess of one million five hundred thousand dollars. Completed applications will be reviewed by the date/time they were received.

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No later than December 31 of each calendar year, the Well-Ahead shall issue a tax certificate letter to the taxpayer notifying the taxpayer as to whether the application has been approved or denied. If approved, the tax certificate letter shall notify the taxpayer of the maximum amount eligible, the taxable period against which the nonrefundable credit may be used, and the time period during which the credit must be claimed. If denied, the letter shall so provide the reasons for denial.

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Yes, your application is not considered complete and will not be date/time stamped if any information is missing.

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Yes, this is the only application that you need to fill out, but make sure to fill out application Applications submitted that are not complete, will not be reviewed/considered for the tax credit.

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No taxpayer shall receive the credit for more than five tax years.

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