House File 2261 - Introduced



                                       HOUSE FILE       
                                       BY  FREVERT


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act allowing an individual income tax deduction for dentists
  2    who receive state medical assistance reimbursement which is
  3    less than their normal fee and including a retroactive
  4    applicability date provision.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5583YH 81
  7 mg/sh/8

PAG LIN



  1  1    Section 1.  Section 422.7, Code Supplement 2005, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  45.  If the taxpayer is a provider of
  1  4 dental services under the medical assistance program and the
  1  5 rate of reimbursement for such dental services is less than
  1  6 the taxpayer normally charges for such dental services,
  1  7 subtract fifty percent of the difference between the amount
  1  8 normally charged and the reimbursement rate for each dental
  1  9 service provided which is reimbursed under the medical
  1 10 assistance program.
  1 11    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 12 retroactively to January 1, 2006, for tax years beginning on
  1 13 or after that date.
  1 14                           EXPLANATION
  1 15    This bill provides a deduction in computing individual
  1 16 income tax to a taxpayer that provides dental services
  1 17 reimbursed under the state medical assistance (Medicaid)
  1 18 program.  The amount of the deduction equals 50 percent of the
  1 19 difference between the reimbursement rate and the normal fee
  1 20 charged by the taxpayer for the dental service.
  1 21    The bill applies retroactively to January 1, 2006, for tax
  1 22 years beginning on or after that date.
  1 23 LSB 5583YH 81
  1 24 mg:rj/sh/8