House File 638 - Introduced



                                       HOUSE FILE       
                                       BY  WESSEL=KROESCHELL


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

                                      A BILL FOR

  1 An Act providing an income tax deduction for an individual whose
  2    rate of reimbursement under the medical assistance program is
  3    less than the individual normally charges and including a
  4    retroactive applicability date provision.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2505HH 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 licensed
  1  4 physician, dentist, or optometrist who provides dental or eye
  1  5 services under the medical assistance program and the rate of
  1  6 reimbursement for such dental or eye services is less than the
  1  7 taxpayer normally charges for such services, subtract fifty
  1  8 percent of the difference between the amount normally charged
  1  9 and the reimbursement rate for each dental service or eye
  1 10 service provided which is reimbursed under the medical
  1 11 assistance program.
  1 12    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 13 retroactively to January 1, 2007, for tax years beginning on
  1 14 or after that date.
  1 15                           EXPLANATION
  1 16    This bill provides a deduction in computing individual
  1 17 income tax to a taxpayer that provides dental or eye services
  1 18 reimbursed under the state medical assistance (Medicaid)
  1 19 program.  The amount of the deduction equals 50 percent of the
  1 20 difference between the reimbursement rate and the normal fee
  1 21 charged by the taxpayer for the dental service or eye service.
  1 22    The bill applies retroactively to January 1, 2007, for tax
  1 23 years beginning on or after that date.
  1 24 LSB 2505HH 82
  1 25 mg:rj/es/88