85R4587 GRM-D
By: Bohac H.B. No. 725
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion from total revenue of certain payments
received by health care providers for purposes of computing the
franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011(n), Tax Code, is amended to
read as follows:
(n) A [Except as provided by Subsection (o), a] taxable
entity that is a health care provider shall exclude from its total
revenue:
(1) to the extent included under Subsection (c)(1)(A),
(c)(2)(A), or (c)(3), the total amount of payments the health care
provider received:
(A) under the Medicaid program, Medicare
program, Indigent Health Care and Treatment Act (Chapter 61, Health
and Safety Code), and Children's Health Insurance Program (CHIP);
(B) for professional services provided in
relation to a workers' compensation claim under Title 5, Labor
Code; and
(C) for professional services provided to a
beneficiary rendered under the TRICARE military health system; and
(2) the actual cost to the health care provider for any
uncompensated care provided, but only if the provider maintains
records of the uncompensated care for auditing purposes and, if the
provider later receives payment for all or part of that care, the
provider adjusts the amount excluded for the tax year in which the
payment is received.
SECTION 2. Section 171.1011(o), Tax Code, is repealed.
SECTION 3. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 4. This Act takes effect January 1, 2018.