Relating to a system for submitting certified statements required for reporting compliance with the prevailing wage laws; declaring an emergency.

2025 Regular Session

Offers a $5,000 nonrefundable Illinois income tax credit per qualifying physician in underserved or rural areas to attract/retain doctors and improve access to care.

In committee upon adjournment.

Summary of HB3216 (Illinois)

Purpose and overall intent

HB3216 would create a targeted income tax credit aimed at attracting and retaining qualified physicians to underserved areas and rural parts of Illinois. By offering a $5,000 credit against individual income tax for each qualified physician, the bill seeks to bolster healthcare access in areas with limited medical resources.

Key provisions

Credit amount and timing

A $5,000 income tax credit for taxable years beginning on or after January 1, 2026.
The credit amounts are against the individual taxpayer’s liability under the Illinois Income Tax Act.

Credit limitations

The credit may not reduce the taxpayer’s liability below zero.
If the credit exceeds the taxpayer’s liability for the year, the excess may not be carried forward or carried back (no carryover/retroactive application).

Eligibility and definitions

Qualified physician: A physician licensed to practice medicine in all its branches, in good standing, who:
Works as a physician at a hospital, health clinic, or as an independent physician; and
Works in an underserved area (as defined in the Economic Development for a Growing Economy Tax Credit Act) or in a rural county or rural municipality; and
Provides health care services to at least 10 patients in the taxable year.
Good standing: No adverse disciplinary action by the Illinois State Medical Board at any time and no more than 3 medical malpractice judgments or settlements in the 4 years preceding the year in which the credit is sought.
Independent physician: As defined in the Hospital Licensing Act.
Underserved area: Defined by the relevant section of the Economic Development for a Growing Economy Tax Credit Act.
Rural county: A county designated rural by the Illinois Department of Public Health’s Center for Rural Health, outside a metropolitan area or with population under 60,000 if part of a metro area.
Rural municipality: Population of 5,000 or fewer.

Exemption: The credit is exempt from the provisions of Section 250 of the Illinois Income Tax Act.

Effective date

The act takes effect upon becoming law.

Affected entities and individuals

Primary beneficiaries: Individual physicians who meet the eligibility criteria and work in underserved or rural Illinois.

Hospitals, clinics, and independent practices in designated areas may benefit indirectly through improved physician staffing and service provision.

Legislative and procedural timeline

Introduced: February 18, 2025 by Rep. Wayne A. Rosenthal.

Secondary actions: Read first time (March 20, 2025); referred to Appropriations, then to Income Tax Subcommittee and Rules Committee in the ensuing weeks.

Co-sponsorship: Added Rep. Tony M. McCombie as a co-sponsor (September 30, 2025).

Initial status: Classified as a revenue-related bill; ongoing committee considerations.

Potential impact

Adds a targeted, nonrefundable $5,000 credit per qualifying physician to Illinois personal income tax.

Aims to improve physician presence in underserved and rural communities; supports access to care in areas historically with physician shortages.

Fiscal impact would depend on the number of qualifying physicians and the interaction with other credits, given the nonrefundable and non-carryover nature of the credit.