Senate Bill No. 166
(By Senators Kessler (Mr. President), Unger, Stollings, Jenkins,
Miller and Laird)
[Introduced February 15, 2013; referred to the Committee on
Health and Human Resources; and then to the Committee on
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-13DD-1, §11-13DD-
2, §11-13DD-3, §11-13DD-4, §11-13DD-5, §11-13DD-6, §11-13DD-7,
§11-13DD-8 and §11-13DD-9, all relating to establishing a tax
credit for certain physicians who provide certain physician's
services at no charge to certain free health facilities in
West Virginia; setting forth findings; specifying definitions;
authorizing credit; specifying the amount of tax credit;
specifying how credit may be asserted; specifying no credit
carryovers; specifying forms and schedules to be established
by the Tax Commissioner; specifying $10,000 maximum credit per
taxpayer per tax year; disallowing application of tax credit if the credit allowed under article thirteen-j of said chapter
is allowed for the same credit base; providing for add back of
deductions, adjustments or modifications to taxable income if
based upon the same activity, in-kind service, donation or
contribution for which credit is taken; authorizing the Tax
Commissioner to promulgate rules; and specifying effective
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 article, designated §11-13DD-1, §11-13DD-2,
§11-13DD-3, §11-13DD-4, §11-13DD-5, §11-13DD-6, §11-13DD-7, §11-
13DD-8 and §11-13DD-9, all to read as follows:
ARTICLE 13DD. TAX CREDIT FOR FREE MEDICAL SERVICES.
§11-13DD-1. Legislative finding and purpose.
The Legislature finds that physicians practicing in this state
who provide their services at no charge in free health clinics are
providing services in the public interest and promote the general
welfare of the people of this state.
(a) General. -- When used in this article, or in the
administration of this article, terms defined in subsection (b) of
this section have the meanings ascribed to them by this section,
unless a different meaning is clearly required by the context in which the term is used.
(b) Terms defined. --
(1) "Eligible taxpayer" means any physician who provides not
less than three hundred hours per tax year of physician's services
at no charge in one or more free health care facilities in this
(2) "Free health care facility" means a nonprofit, charitable,
or eleemosynary health care facility qualified as exempt from
federal taxation under Section 501(c)(3) of the Internal Revenue
Code of 1987, as amended, which voluntarily and without expectation
or receipt of payment or other compensation or financial benefit,
provides health care services to persons who do not qualify for
Medicare or Medicaid, have no private health insurance, and cannot
afford to see a medical care professional.
(3) "Health care facility" means a facility defined as a
health care facility by section three, article thirty-c, chapter
sixteen of this Code.
(4)"Physician" means any allopathic or osteopathic doctor
licensed to practice medicine in this state.
(5) "Physicians' services" means and is limited to those
services furnished by a physician within the scope of the practice
of allopathic or osteopathic medicine, as defined by the laws of
§11-13DD-3. Eligibility for tax credits; creation of the credit.
Every eligible taxpayer is allowed a credit against the tax
payable under article twenty-one of this chapter. The amount of
this credit is determined and applied as provided in this article.
§11-13DD-4. Amount of credit allowed.
The amount of annual credit allowable under this article to an
eligible taxpayer is $10,000.
§11-13DD-5. Excess credit forfeited.
After application of the credit against tax under this article
for the tax year, the amount of tax credit remaining and not used,
if any, is forfeited. Unused credit may not be carried back to any
prior tax year and does not carry forward to any subsequent tax
§11-13DD-6. Application of credit; schedules; estimated taxes.
(a) The credit allowed under this article is applied against
the tax payable by the eligible taxpayer under article twenty-one
of this chapter.
(b) To assert this credit against tax, the eligible taxpayer
shall prepare and file with its annual tax return filed under
article twenty-one of this chapter, such forms and schedules as the
Tax Commissioner may require.
(c) An eligible taxpayer may consider the amount of credit
allowed under this article when determining the eligible taxpayer's liability under article twenty-one of this chapter for periodic
payments of estimated tax for the tax year, in accordance with the
procedures and requirements prescribed by the Tax Commissioner.
(d) Any charitable deduction, or other deduction, decreasing
adjustment or decreasing modification taken by any taxpayer in
determining federal taxable income which affects West Virginia
taxable income under article twenty-one of this chapter, or taken
by any taxpayer in determining West Virginia taxable income under
article twenty-one of this chapter for the taxable year, shall be
added to West Virginia taxable income in determining the tax
liability of the taxpayer under article twenty-one of this chapter,
before application of the credit allowed under this article for the
taxable year, if such deduction, adjustment of modification is the
result of, or is calculated or determined based on, physician's
services provided by the eligible taxpayer during the tax year at
no charge in one or more free health care facilities in this state,
for which credit is claimed under this article,.
(e) No credit is allowed under this article for any activity,
donation, contribution, or in-kind service, for which the tax
credit authorized under article thirteen-j of this chapter has been
authorized, taken or allowed.
§11-13DD-7. Legislative rules.
The Tax Commissioner may propose for legislative approval pursuant to the provisions of article three, chapter twenty-nine-a
of this code any rules that may be necessary to execute the
purposes of this article.
§11-13DD-8. Construction of article; burden of proof.
The provisions of this article shall be reasonably construed.
The burden of proof is on the person claiming the credit allowed by
this article to establish by clear and convincing evidence that the
person is entitled to the amount of credit asserted for the taxable
§11-13DD-9. Effective date.
This article is effective for taxable years beginning after
December 31, 2013.
NOTE: The purpose of this bill is to establish a tax credit
for physicians who provide physician's services at no charge to
free health facilities in West Virginia.
This article is new; therefore, strike-throughs and
underscoring have been omitted.