House File 2430 - Introduced HOUSE FILE 2430 BY FREVERT A BILL FOR An Act allowing an individual income tax deduction for 1 certain dentists who receive medical assistance program 2 reimbursement that is less than their normal fee and 3 including retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5772HH (5) 83 tw/sc
H.F. 2430 Section 1. Section 422.7, Code Supplement 2009, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 54. a. Subject to the requirement 3 of paragraph “b” , if the taxpayer is a provider of dental 4 services under the medical assistance program and the rate 5 of reimbursement for such dental services is less than the 6 taxpayer normally charges for such dental services, subtract 7 the difference between the amount normally charged and the 8 reimbursement rate for each dental service provided that is 9 reimbursed under the medical assistance program. 10 b. To be eligible for the deduction in paragraph “a” , the 11 taxpayer must provide at least fifty thousand dollars worth of 12 dental services at a reduced rate of reimbursement under the 13 medical assistance program during the tax year. 14 Sec. 2. RETROACTIVE APPLICABILITY DATE. This Act applies 15 retroactively to January 1, 2010, for tax years beginning on 16 or after that date. 17 EXPLANATION 18 This bill provides a deduction in computing individual 19 income tax to a taxpayer that provides dental services 20 reimbursed under the medical assistance program (Medicaid). 21 The amount of the deduction equals the difference between the 22 reimbursement rate and the normal fee charged by the taxpayer 23 for the dental service. However, to be eligible, the taxpayer 24 must provide at least $50,000 of dental services at reduced 25 rates under the medical assistance program. 26 The bill applies retroactively to January 1, 2010, for tax 27 years beginning on or after that date. 28 -1- LSB 5772HH (5) 83 tw/sc 1/ 1