DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 427 Reengrossed 2017 Regular Session Dustin Miller
Abstract: Changes the qualifications for the tax credit for health care providers who relocate to
certain underserved areas of the state, sets a $1.5 million annual cap on the amount of the
credits, requires the La. Dept. of Health administer the program, and limits the credit to
taxable periods ending prior to Jan. 1, 2021.
Present law authorizes tax credits of up to five years for medical doctors who establish and maintain
their primary office within 20 miles of a community hospital not owned predominately by other
physicians, provided both the office and hospital are located more than 20 miles from the nearest city
of 30,000 or more, and the physician relocates the office from outside the hospital's service area.
Proposed law deletes the criteria in present law and provides the tax credit to licensed physicians and
primary care nurse practitioners whose primary offices are within a federally designated primary care
needs geographic health professional shortage area and within a rural area as defined by the La. Dept.
of Health (LDH).
Present law provides a tax credit for up to five years to dentists who establish and maintain a primary
office within a federally designated Dental Health Professional Shortage Area.
Proposed law retains present law and additionally requires that the dentist office be located in a rural
area as defined by LDH.
Proposed law requires that LDH be responsible for receiving applications for the tax credit and
certifying the eligibility of taxpayers for the credit. Requires the Dept. of Revenue, in consultation
with LDH, to promulgate rules in accordance with the APA for the performance of LDH's
responsibilities, including an application process for certifying the eligibility of primary care health
providers to receive the credit and to claim the credit.
Proposed law limits the total amount of tax credits given to $1.5 million per year. Requires the rules
and regulations promulgated pursuant to proposed law to establish a method of allocating available
tax credits, such as first-come, first-served, reservations of tax credits, or another method the Dept.
of Revenue and LDH finds beneficial.
Proposed law is subject to a review by the House Committee on Ways and Means and the Senate
Committee on Revenue and Fiscal Affairs. Such review may include an evaluation of the increase
or decrease in the number of qualifying professionals. Proposed law limits the effectiveness of the tax credit under present and proposed law to taxable
periods ending prior to January 1, 2021.
(Amends R.S. 47:297(H)(2)(a), (b), and (c) and (3); Adds R.S. 47:297(H)(4)-(7)) Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the rule promulgation authority from LDH to the Dept. of Revenue in
consultation with LDH.
2. Clarify that LDH certifies the total amount of the tax credits and the Dept. of Revenue
grants the tax credits.
3. Make technical changes.