In order to qualify for the entire $20,000 credit, you are required to locate or relocate your principal practice to a rural area and provide medical services to the general public for a period of eight years. The rural area that you service cannot be within a 30 mile radius of a hospital that has at least 60 beds.

You are required to begin your practice at least 9 months before the end of your tax year to be eligible for the credit your first year and you cannot claim the credit in the year that you cease your practice. If you close your practice in the rural area within four years of claiming this credit, you will be required to repay to the state the amount of the credit that you claimed in the prior year(s) (see instructions for Form 2, line 54 for the repayment of the rural physician's credit).

When taking this credit, attach to your Montana income tax return a statement providing the following information:

• The date your practice began.
• The street address and city of the location where you began your practice.
• The professional area of your medical practice, for example "family practice." The location of the nearest hospital.

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