H. B. 4160
(By Delegates Fleischauer, Perdue, Hatfield, Craig,
Guthrie, Marshall, Beach, Shook, White, Kominar and Poore)
[Introduced January 22, 2010; referred to the
Committee on Health and Human Resources then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-21-12j; and to
amend said code by adding thereto a new section, designated
§11-24-25, all relating to the creation of a tax incentive to
dental practitioners to perform dental services at no cost to
indigent patients; providing a decreasing modification
reducing federal gross income; providing a decreasing
modification reducing federal taxable income; defining terms;
providing amount of decreasing modifications; and requiring a
schedule to be filed with a tax return to receive the
decreasing modifications.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-21-12j; and that
said code be amended by adding thereto a new section, designated
§11-24-25, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12j. Decreasing modification reducing federal adjusted
gross income.
(a) Legislative findings. -- The Legislature finds that there
is a need for the provision of dental services for the adult
indigent. Poor dental health decreases overall health and well-
being, and in some cases may prevent a patient from receiving other
necessary medical care, such as heart surgery. The adult indigent
population has access to medical care through various public
programs, but access to dental care is extremely limited. The
Legislature recognizes that many dentists provide dental services
to adult indigent patients at no cost. Desiring to encourage more
charity dental care, there is created a tax incentive to reduce the
taxable income of dentists providing services to adult indigent
patients.
(b) General. -- For tax years, beginning after January 1,
2010, in addition to amounts authorized to be subtracted from
federal adjusted gross income pursuant to subsection (c), section
twelve of this article, the value of services rendered to indigent
dental patients at no cost by eligible taxpayers, is also an
authorized modification reducing federal adjusted gross income, but
only to the extent the amount is not allowable as a deduction when
arriving at the taxpayer's federal adjusted gross income for the
taxable year in which the payment is made. This modification is available regardless of the type of return form filed. The
taxpayer may also elect to carry forward the modification over a
period not to exceed five taxable years, beginning in the taxable
year in which the payment was made.
(c) Definitions. -- When used in this section, or in the
administration of this section, terms defined in this subsection
have the meanings ascribed to them by this subsection, unless a
different meaning is clearly required by the context in which the
term is used, or by specific definition, in this article.
(1) "Eligible taxpayer" is defined as a taxpayer who is
licensed pursuant to article four, chapter thirty of this code.
(2) "Indigent patient" is defined as a West Virginia resident
whose income is one hundred fifty percent or more below the federal
poverty level, and who has no insurance coverage for dental care.
(d) Amount of decreasing modification. -- The amount of
decreasing modification allowable under this section to an eligible
tax payer may not exceed $15,000: Provided, That the amount of the
decreasing modification will be the dollar value of any dental
services provided to indigent patients at no cost, based upon the
number of hours worked times the rates specified by Medicaid for the
reimbursement for dental services.
(e) Screening and referral of adult indigent patients to
eligible taxpayers for dental services for which the decreasing
modification may be taken shall be done by the free clinics recognized by the State of West Virginia or by the Donated Dental
Program.
(f) Schedule. -- To assert this decreasing modification,
eligible taxpayers shall prepare and file with the annual tax return
filed pursuant to this article, a schedule showing the amount of
dental services provided at no cost to indigent patients during the
taxable year, the amount of decreasing modification allowed under
this section, the taxes against which the decreasing modification
is being applied and other information that the Tax Commissioner may
require. This annual schedule shall set forth the information and
be in the form prescribed by the Tax Commissioner.
(g) An eligible taxpayer may consider the amount of decreasing
modification allowed under this section when determining the
eligible taxpayer's liability under this article for periodic
payments of estimated tax for the taxable year, in accordance with
the procedures and requirements prescribed by the Tax Commissioner.
The annual total tax liability and total decreasing modification
allowed under this section are subject to adjustment and
reconciliation pursuant to the filing of the annual schedule
required by subsection (e) of this section.
(f) The Tax Commissioner may propose rules necessary to carry
out the provisions of this section and to provide guidelines and
requirements necessary to ensure uniform administrative practices
statewide to effect the intent of this section, all in accordance with the provisions of article three, chapter twenty-nine-a of this
code.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-25. Decreasing modification reducing federal taxable income.
(a) Legislative findings. -- The Legislature finds that there
is a need for the provision of dental services for the adult
indigent. Poor dental health decreases overall health and well-
being, and in some cases may prevent a patient from receiving other
necessary medical care, such as heart surgery. The adult indigent
population has access to medical care through various public
programs, but access to dental care is extremely limited. The
Legislature recognizes that many dentists provide dental services
to adult indigent patients at no cost. Desiring to encourage more
charity dental care, there is created a tax incentive to reduce the
taxable income of dentists providing services to adult indigent
patients.
(b) For tax years, beginning after January 1, 2010, in addition
to amounts authorized to be subtracted from federal taxable income
pursuant subsection (c), section six this article, the value of
services rendered to indigent dental patients at no cost by eligible
taxpayers, is also an authorized modification reducing federal
taxable income, but only to the extent the amount is not allowable
as a deduction when arriving at the taxpayer's federal taxable
income for the taxable year in which the payment is made. This modification is available regardless of the type of return form
filed. The taxpayer may also elect to carry forward the
modification over a period not to exceed five taxable years,
beginning in the taxable year in which the payment was made.
(c) Definitions. -- When used in this section, or in the
administration of this section, terms defined in this subsection
have the meanings ascribed to them by this subsection, unless a
different meaning is clearly required by the context in which the
term is used, or by specific definition, in this article.
(1) "Eligible taxpayer" is defined as a taxpayer who is
licensed pursuant to article four, chapter thirty of this code.
(2) "Indigent patient" is defined as a West Virginia resident
whose income is two hundred percent or more below the federal
poverty level, and who has no insurance coverage for dental care.
(d) Amount of decreasing modification. -- The amount of
decreasing modification allowable under this section to an eligible
tax payer may not exceed $15,000: Provided, That the amount of the
decreasing modification will be the dollar value of any dental
services provided to indigent patients at no cost, based upon the
number of hours worked times the rates specified by Medicaid for the
reimbursement for dental services.
(e) Screening and referral of indigent patients to eligible
taxpayers for dental services for which the decreasing modification
may be taken shall be done by the free clinics licensed by the State of West Virginia or by the Donated Dental Program.
(f) Schedule. -- To assert this decreasing modification,
eligible taxpayers shall prepare and file with the annual tax return
filed pursuant to this article, a schedule showing the amount of
dental services provided at no cost to indigent patients during the
taxable year, the amount of decreasing modification allowed under
this section, the taxes against which the decreasing modification
is being applied and other information that the Tax Commissioner may
require. This annual schedule shall set forth the information and
be in the form prescribed by the Tax Commissioner.
(g) An eligible taxpayer may consider the amount of decreasing
modification allowed under this section when determining the
eligible taxpayer's liability under this article for periodic
payments of estimated tax for the taxable year, in accordance with
the procedures and requirements prescribed by the Tax Commissioner.
The annual total tax liability and total decreasing modification
allowed under this section are subject to adjustment and
reconciliation pursuant to the filing of the annual schedule
required by subsection (e) of this section.
(h) The Tax Commissioner may propose rules necessary to carry
out the provisions of this section and to provide guidelines and
requirements necessary to ensure uniform administrative practices
statewide to effect the intent of this section, all in accordance
with the provisions of article three, chapter twenty-nine-a of this code.
NOTE: The purpose of the bill is to provide a tax incentive to
dental practitioners to perform dental services at no cost to
indigent patients as defined.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.