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2017 Regular Session
SENATE BILL NO. 171
BY SENATOR BARROW
TAX/INCOME/PERSONAL. Provides for an income tax credit for physicians who provide
uncompensated care to indigent patients. (gov sig)
1 AN ACT
2 To enact R.S. 47:297.14 relative to tax credits; to provide for an individual income tax credit
3 for physicians who provide medical care to indigent patients; to provide for the rate
4 of the credit; to provide for an effective date; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:297.14 is hereby enacted to read as follows:
7 ยง297.14. Indigent medical care provider tax credit
8 A. For taxable periods beginning January 1, 2019, there shall be a
9 nonrefundable tax credit for physicians for a percentage of the cost of providing
10 unreimbursed medical care to an indigent patient.
11 B. Definitions.
12 (1) "Indigent patient" means a patient who receives medical care whose
13 care is not paid for by a health insurance provider, Medicaid, Medicare, private
14 funds, or any other funding source.
15 (2) "Cost" means the compensation for the service provided to the
16 indigent patient determined at lowest rate accepted by the physician from any
17 insurance provider, including Medicare and Medicaid.
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words in boldface type and underscored are additions. SB NO. 171
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1 (3) "Unreimbursed" means that the physician received no payment from
2 any source for providing the patient care and is not eligible to claim any other
3 state or federal income tax deduction related for the unpaid care.
4 C. Applicable credit percentage.
5 (1) For taxable years beginning on or after January 1, 2019, and ending
6 before January 1, 2021, the credit shall be fifteen percent of the cost of
7 providing unreimbursed medical care to an indigent patient.
8 (2) For taxable years beginning on or after January 1, 2021, and ending
9 before January 1, 2023, the credit shall be twenty percent of the cost of
10 providing unreimbursed medical care to an indigent patient.
11 (3) For taxable years beginning on or after January 1, 2023, and ending
12 before January 1, 2025, the credit shall be twenty-five percent of the cost.
13 (4) For taxable years beginning on or after January 1, 2025, and ending
14 before January 1, 2027, the credit shall be thirty percent of the cost of providing
15 unreimbursed medical care to an indigent patient.
16 (5) For taxable years beginning on or after January 1, 2027, and ending
17 before January 1, 2029, the credit shall be thirty-five percent of the cost of
18 providing unreimbursed medical care to an indigent patient.
19 (6) For taxable years beginning on or after January 1, 2029, and ending
20 before January 1, 2031, the credit shall be forty percent of the cost of providing
21 unreimbursed medical care to an indigent patient.
22 (7) For taxable years beginning on or after January 1, 2031, and ending
23 before January 1, 2033, the credit shall be forty-five percent of the cost of
24 providing unreimbursed medical care to an indigent patient.
25 (8) For taxable years beginning on or after January 1, 2033, the credit
26 shall be fifty percent of the cost of providing unreimbursed medical care to an
27 indigent patient.
28 D. Credit recapture. In the event that the physician later receives
29 compensation for the medical care for which this credit was claimed, the
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 171
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1 physician shall file an amended individual income tax return reducing the credit
2 claim as necessary.
3 Section 2. This Act shall become effective upon signature by the governor or, if not
4 signed by the governor, upon expiration of the time for bills to become law without signature
5 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
6 vetoed by the governor and subsequently approved by the legislature, this Act shall become
7 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 171 Original 2017 Regular Session Barrow
Present law provides for an individual income tax that is based on the individual's federal
adjusted gross income.
Proposed law provides for an individual income tax credit to physicians for a percentage of
the cost of providing unreimbursed medical care to indigent patients.
Proposed law provides that the credit shall be available beginning in the 2019 tax year and
will increase from 15% by five percent every two years until it reaches its maximum rate of
50% in 2033.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:297.14)
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.