GREEN SHEET REDIGEST
HB 427 2017 Regular Session Dustin Miller
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX CREDITS. Provides relative to the tax credit for certain medical providers.
DIGEST
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 that tax credit be earned
when the taxpayer's eligibility is certified by the Louisiana Department of Health. Provides
that if the taxpayer does not maintain the requirements of this proposed law amounts
certified be subject to disallowance or recapture. Prohibits taxpayer from receiving the credit
for more than five years. 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 provides that no tax credits be certified for applications received on or after
January 1, 2021.
Effective January 1, 2018.
(Amends R.S. 47:297(H)(2)(a), (b), and (c) and (3); Adds R.S. 47:297(H)(4)-(7))
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Prepared by James Benton. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Provides for certification of the taxpayer's eligibility by the Louisiana
Department of Health.
2. Prohibits certification of tax credits on applications received on or after January
1, 2021.
3. Provides January 1, 2018 effective date.
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Prepared by James Benton.