Tennessee Senate Bill SB1904

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, relative to tax relief.

Impact

One of the primary impacts of SB1904 is the introduction of a credit against business, excise, and franchise taxes, which is limited to fifty percent of the total tax liability of the provider. Furthermore, any unused tax credits can be carried forward for up to five years. This provision allows healthcare providers to manage their financial liabilities more effectively over time, providing them with crucial financial support. By enabling providers to claim tax credits or refunds for unreimbursed TennCare costs, the bill aims to bolster the financial viability of these providers, which could ultimately enhance the healthcare services available to low-income populations.

Summary

Senate Bill 1904 aims to amend Tennessee Code Annotated, specifically Title 67, Chapter 4, in regards to tax relief for eligible healthcare providers. This bill introduces a new part that outlines tax credits for unreimbursed costs incurred by healthcare providers who participate in the TennCare program. This program serves as the state's Medicaid program and the bill is designed to provide certain tax incentives to healthcare providers who may experience financial challenges due to unreimbursed costs when treating TennCare recipients. The legislation emphasizes the importance of maintaining the accessibility of healthcare services for these individuals.

Contention

There are potential points of contention regarding SB1904, particularly focused on the limits and conditions placed upon the tax credits. Concerns may be raised by legislators regarding the sustainability of such tax expenditures and their long-term implications on state revenue. Additionally, the requirement that proceeds from any elected refund be used solely for charitable contributions may also generate debate about the appropriateness and effectiveness of such a condition. Stakeholders are likely to debate whether this aligns with the overall goal of improving healthcare access or if it causes unintended consequences for healthcare providers who may prefer retaining funds for direct operational costs.