H.F. _____ Section 1. NEW SECTION . 422.11E Eligible psychiatrist tax 1 credit. 2 1. As used in this section, unless the context otherwise 3 requires: 4 a. “Educational loan” means the same as defined in section 5 261F.1. 6 b. “Eligible psychiatrist” means a taxpayer who meets all 7 the following criteria: 8 (1) The taxpayer is a psychiatrist primarily practicing 9 within a mental health professional shortage area. 10 (2) The taxpayer has an amount of educational loan debt that 11 was incurred in furtherance of the postsecondary education of 12 the taxpayer. 13 (3) The taxpayer is not delinquent or in arrears in the 14 repayment of the taxpayer’s educational loan debt. 15 c. “Mental health professional shortage area” means the same 16 as defined in section 135.180. 17 d. “Psychiatrist” means an individual who is licensed to 18 practice medicine and surgery or osteopathic medicine and 19 surgery under chapter 148 and who is engaged in the full-time 20 practice of medicine and surgery or osteopathic medicine and 21 surgery specializing in psychiatry. 22 e. “State income tax liability” means the taxes computed 23 under section 422.5, less the amounts of refundable and 24 nonrefundable credits allowed under this division except the 25 credits for withheld tax and estimated tax paid under section 26 422.16, and computed without regard to the credit in this 27 section. 28 2. The taxes imposed under this division, less the credits 29 allowed under this division except the credit in this section 30 and the credits for withheld tax and estimated tax paid under 31 section 422.16, shall be reduced by an eligible psychiatrist 32 tax credit to an eligible psychiatrist. To be allowed the 33 credit, an eligible psychiatrist must meet the following 34 requirements: 35 -1- LSB 1542YC (2) 85 mm/sc 1/ 4

H.F. _____ a. The eligible psychiatrist’s tax return on which the 1 credit is claimed is timely filed, including any extension of 2 time to file. 3 b. The eligible psychiatrist is not currently delinquent 4 in filing any tax return with this state nor does the eligible 5 psychiatrist have delinquent accounts, charges, fees, loans, 6 taxes, or other indebtedness owed to this state or a political 7 subdivision of this state, excluding educational loan 8 indebtedness. 9 3. a. The credit shall be an amount equal to the eligible 10 psychiatrist’s state income tax liability for the tax year. If 11 the taxpayer is not an eligible psychiatrist for the entire 12 tax year, the maximum amount of the credit for the taxpayer 13 shall equal the maximum amount of the credit for the tax year, 14 divided by twelve, multiplied by the number of months in the 15 tax year the taxpayer was an eligible psychiatrist. The credit 16 shall be rounded to the nearest dollar. If the taxpayer is an 17 eligible psychiatrist any part of the month, the taxpayer shall 18 be considered an eligible psychiatrist for the entire month. 19 b. The maximum amount that may be refunded to a taxpayer in 20 any tax year the credit allowed under this section is claimed 21 shall not exceed the sum of the amount withheld for the tax 22 year from the taxpayer’s wages or other income pursuant to 23 section 422.16, plus the amount paid as estimated tax by the 24 taxpayer for the tax year pursuant to section 422.16. 25 4. The taxpayer is required to provide all of the following 26 to the department: 27 a. A written statement from an appropriate supervisor, 28 or, if the taxpayer has no supervisor, from the taxpayer, 29 verifying that the taxpayer met the requirements of subsection 30 1, paragraph “b” , subparagraph (1), for the months for which the 31 credit under this section is claimed. 32 b. Information sufficient to verify that the taxpayer met 33 the requirements in subsection 1, paragraph “b” , subparagraphs 34 (2) and (3), for the months for which the credit under this 35 -2- LSB 1542YC (2) 85 mm/sc 2/ 4

H.F. _____ section is claimed. 1 c. Any other information the department deems relevant and 2 appropriate to verify a taxpayer’s eligibility for the credit 3 allowed under this section. 4 5. The director of revenue shall adopt rules to implement 5 and administer this section. 6 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 7 2014. 8 Sec. 3. APPLICABILITY. This Act applies to tax years 9 beginning on or after January 1, 2014. 10 EXPLANATION 11 This bill creates an individual income tax credit for an 12 individual who is an eligible psychiatrist for the entire tax 13 year. “Eligible psychiatrist” is defined as an individual 14 who is engaged in the full-time practice of psychiatry within 15 a mental health professional shortage area in this state, as 16 that term is defined in the bill, and who has educational 17 loan debt related to the individual’s postsecondary education 18 and is not delinquent or in arrears in the repayment of that 19 educational loan debt. In order to be allowed the credit, the 20 eligible psychiatrist’s income tax return must be timely filed 21 and the eligible psychiatrist must not be currently delinquent 22 in filing any other tax return with this state, or have any 23 delinquent accounts, charges, fees, loans, taxes, or other 24 indebtedness owed this state or its political subdivisions, 25 excluding educational loan indebtedness. 26 The tax credit is equal to the eligible psychiatrist’s state 27 income tax liability for the tax year. “State income tax 28 liability” is defined as the taxes computed under Code section 29 422.5, less the amounts of refundable and nonrefundable credits 30 allowed under Code chapter 422, division II, except the credits 31 for withheld tax and estimated tax paid under Code section 32 422.16, and computed without regard to the tax credit provided 33 in the bill. If the individual is not an eligible psychiatrist 34 for the entire tax year, the amount of the credit is prorated 35 -3- LSB 1542YC (2) 85 mm/sc 3/ 4

H.F. _____ based upon the months the individual qualifies as an eligible 1 psychiatrist. The maximum amount that may be refunded to a 2 taxpayer in any year the eligible psychiatrist tax credit is 3 claimed shall not exceed the sum of the taxpayer’s withholding 4 on wages or other income for that year, plus the estimated tax 5 payments made for that year. 6 To claim the eligible psychiatrist tax credit, a taxpayer is 7 required to provide the department of revenue with a written 8 statement from an appropriate supervisor verifying that the 9 taxpayer was an eligible taxpayer for the months for which the 10 tax credit is claimed. If the taxpayer has no supervisor, 11 the written statement shall be provided by the taxpayer. The 12 taxpayer is also required to provide the department information 13 relating to the educational loan debt of the taxpayer, and any 14 other information the department deems relevant and appropriate 15 to verify the taxpayer’s eligibility for the credit. 16 The bill takes effect January 1, 2014, and applies to tax 17 years beginning on or after that date. 18 -4- LSB 1542YC (2) 85 mm/sc 4/ 4