House File 2270 - Introduced HOUSE FILE 2270 BY R. TAYLOR A BILL FOR An Act creating a physician donated services tax credit 1 available against the individual income tax, and including 2 effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5670YH (2) 85 mm/sc

H.F. 2270 Section 1. NEW SECTION . 422.11C Physician donated services 1 tax credit. 2 1. As used in this section: 3 a. “Average hourly rate” means, with regard to a tax 4 year, the average hourly rate charged by the physician in the 5 immediately preceding tax year for the provision of health care 6 services. 7 b. “Health care services” means services included 8 in the furnishing to any individual of medical care, or 9 hospitalization, or incident to the furnishing of such care or 10 hospitalization, as well as the furnishing to any person of all 11 other services for the purposes of preventing, alleviating, 12 curing, or healing human physical or mental illness, injury, 13 or disability. 14 c. “Physician” means an individual who meets all of the 15 following requirements: 16 (1) The individual holds an unrestricted license under 17 chapter 148. 18 (2) The individual, either through the individual’s 19 own practice or through the office or group with which the 20 physician practices, offers a charity care or hardship program 21 that offers free health care services to patients. 22 (3) The individual, either through the individual’s 23 own practice or through the office or group with which the 24 physician practices, participates in the Medicaid program or 25 federal Medicare program. 26 2. The taxes imposed under this division, less the 27 credits allowed under section 422.12, shall be reduced by a 28 physician donated services tax credit equal to the product of 29 a physician’s average hourly rate multiplied by the number of 30 hours of free health care services furnished on a voluntary 31 basis in this state by a physician during the tax year but 32 before July 1, 2019, rounded down to the nearest whole dollar, 33 not to exceed ten thousand dollars per physician per tax year. 34 3. Any credit in excess of the taxpayer’s tax liability is 35 -1- LSB 5670YH (2) 85 mm/sc 1/ 2

H.F. 2270 not refundable and shall not be credited to the tax liability 1 for any following year. 2 4. This section is repealed January 1, 2020. 3 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 4 2015. 5 Sec. 3. APPLICABILITY. This Act applies to tax years 6 beginning on or after January 1, 2015, but before January 1, 7 2020. 8 Sec. 4. APPLICABILITY. This Act applies to free health 9 care services furnished on a voluntary basis in this state by a 10 physician on or after January 1, 2015, but before July 1, 2019. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill creates a physician donated services tax credit 15 available against the individual income tax. 16 The credit will be equal to the product of a physician’s 17 average hourly rate multiplied by the number of hours of free 18 health care services furnished on a voluntary basis in this 19 state by a physician during the tax year. The credit shall not 20 exceed $10,000 per physician per tax year. The credit applies 21 to services furnished by a physician on or after January 1, 22 2015, but before July 1, 2019. “Average hourly rate”, “health 23 care services”, and “physician” are all defined in the bill. 24 Any credit in excess of the taxpayer’s tax liability is 25 nonrefundable and shall not be credited to the tax liability 26 for any following year. 27 The credit takes effect January 1, 2015, and applies to 28 tax years beginning on or after that date but before January 29 1, 2020. The credit applies to free health care services 30 furnished on a voluntary basis in this state by a physician on 31 or after January 1, 2015, but before July 1, 2019. 32 The credit is repealed January 1, 2020. 33 -2- LSB 5670YH (2) 85 mm/sc 2/ 2