Rural Primary Care Incentives Act of 1989

Rural Primary Care Incentives Act of 1989 - Amends the Internal Revenue Code to allow a refundable income tax credit of up to $12,000 per year (lifetime total of $36,000) for any physician who provides primary health services to residents of a rural health manpower shortage area and who is not receiving assistance under specified national Health Service Corps programs. Permits advance credit payments through income tax withholding.

Directs the Secretary of Health and Human Services to study and report to the Congress concerning: (1) the need for non-physician primary care providers in targeted rural areas; (2) the effectiveness of the tax credit in increasing the supply of primary care physicians in the targeted areas; and (3) alternative methods of defining rural health manpower shortage areas.

Excludes from gross income any payments made on behalf of a taxpayer by the National Health Service Corps Loan Repayment program.