House File 218 - Introduced



                                       HOUSE FILE       
                                       BY  FREVERT, BUKTA, KRESSIG,
                                           BELL, SHOMSHOR, HEDDENS,
                                           DAVITT, and GAYMAN


    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 1994HH 82
  7 mg/es/88

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  50.  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, 2007, 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, 2007, for tax
  1 22 years beginning on or after that date.
  1 23 LSB 1994HH 82
  1 24 mg:rj/es/88