17053.19.
(a) For each taxable year beginning on or after January 1, 2003, and before January 1, 2008, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to either the amount determined under paragraph (1) or the amount determined under paragraph (2), as elected under paragraph (3).(1) The amount of the credit under this paragraph is 20 percent of the amount received by a qualified medical care professional for treating Medi-Cal beneficiaries in a qualified county.
(2) The amount of the credit under this paragraph is 10 percent of the salary received by a qualified medical care professional as an employee in a either qualified health center or a clinic that is operated by a federally recognized Indian tribe or the Indian Health Service.
(3) Any taxpayer who is eligible for the credit under this section shall make an irrevocable election for each taxable year for which the credit is claimed with respect to the application of either paragraph (1) or paragraph (2) to determine the amount of the credit for that taxable year.
(b) For purposes of this section:
(1) “Medi-Cal” means the California Medical Assistance Program created under the Medi-Cal Act set forth in Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.
(2) “Qualified county” means a county, within California, that during the taxable year satisfies both of the following conditions:
(A) At least 25 percent of the population is Medi-Cal beneficiaries.
(B) The unemployment rate is at least 10 percent.
(3) “Qualified medical care professional” means a physician, surgeon, optometrist, or dentist who is licensed to practice medicine, surgery, optometry, or dentistry in the state and who either treats Medi-Cal beneficiaries on a fee-for-service basis or is a salaried employee at either a qualified health center or a clinic operated by a federally recognized Indian tribe or the Indian Health Service in the state.
For the purposes of this paragraph:
(A) “Physician or surgeon” means an individual who is authorized to practice medicine or surgery pursuant to the provisions of Chapter 5 (commencing with Section 2000) of Division 2 of the Business and Professions Code, and who is licensed by the Medical Board of California or the Osteopathic Medical Board.
(B) “Optometrist” means an individual who is licensed to practice optometry pursuant to the provisions of Chapter 7 (commencing with Section 3000) of Division 2 of the Business and Professions Code.
(C) “Dentist” means an individual who is authorized to practice dentistry pursuant to the provisions of Chapter 4 (commencing with Section 1600) of Division 2 of the Business and Professions Code.
(4) “Qualified health center” means a federally qualified health center or a rural health clinic, as defined in Section 1395x of Title 42 of the United States Code, that is operated in a qualified county.
(c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following seven years.
(d) This section shall remain in effect only until January 1, 2009, and as of that date is repealed.
(e) The Franchise Tax Board shall report annually to the Legislature on the use of the credit.