H.F. 2230 Section 1. Section 422.7, Code 2020, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 59. a. A medical care provider may 3 subtract the value of medical care donated to a patient in this 4 state. 5 b. As used in this subsection: 6 (1) “Medical care” means the care necessary for the purpose 7 of preventing, alleviating, curing, or healing human physical 8 or mental illness, injury, or disability. 9 (2) “Medical care provider” means the same as “health care 10 provider” as defined in section 135.24. 11 (3) “Value of medical care” shall be the product of the 12 average hourly wage of a medical care provider based upon a 13 compensation survey by the American medical association or 14 an equivalent organization for the geographic area where the 15 medical care occurred, multiplied by the number of hours of 16 medical care donated in a year. 17 Sec. 2. APPLICABILITY. This Act applies to tax years 18 beginning on or after January 1, 2021. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill permits a medical care provider to exempt from the 23 individual income tax the value of medical care donated to a 24 patient in this state. 25 The bill defines “medical care” and “medical care provider”. 26 The bill defines “value of medical care” to mean the product 27 of the average hourly wage of a medical care provider based 28 upon a compensation survey by the American medical association 29 or an equivalent organization for the geographic area where the 30 medical care occurred, multiplied by the number of hours of 31 medical care donated in a year. 32 The bill applies to tax years beginning on or after January 33 1, 2021. 34 -1- LSB 5807YH (4) 88 jm/jh 1/ 1