HF 1078

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2013 01:44pm

A bill for an act
relating to taxation; individual income; allowing a credit for uncompensated
medical care provided by physicians; amending Minnesota Statutes 2012, section
290.06, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 290.06, is amended by adding a
subdivision to read:

new text begin Subd. 36. new text end

new text begin Charity care credit. new text end

new text begin (a) A credit is allowed against the tax imposed
under this chapter for uncompensated medical care provided by a physician to an eligible
individual. The credit equals 50 percent of the fair market value of uncompensated
medical care provided during the taxable year. The maximum credit allowed is $....... To
qualify for the credit, the medical care must be a medical procedure covered by Medicare.
new text end

new text begin (b) For purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "eligible individual" means a resident of this state who is not covered by health
insurance and is a member of a household whose combined household income for the
taxable year is less than the federal poverty level for that household for the applicable
taxable year;
new text end

new text begin (2) "fair market value of uncompensated medical care" means an amount not to
exceed the reimbursement rate authorized under Medicare for the medical procedure
for which a credit is allowed by this subdivision. Fair market value of uncompensated
medical care excludes any medical procedure for which the physician has received or
sought a payment from a health plan, government program, or patient;
new text end

new text begin (3) "household income" has the meaning given in section 290.067, subdivision 2a; and
new text end

new text begin (4) "physician" means a person licensed to practice medicine under chapter 147.
new text end

new text begin (c) If the credit allowed under this subdivision exceeds the taxpayer's liability for the
taxable year, the excess is a credit carryover to each of the ... succeeding taxable years.
The entire amount of the excess unused credit must be carried first to the earliest taxable
year to which the amount may be carried. The unused portion of the credit must be carried
to the following taxable year. No credit may be carried to a taxable year more than ...
years after the taxable year in which the credit was earned.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2012.
new text end