FISCAL NOTE
FUND(S):
Medicaid State Share Fund
Sources of Revenue:
Other Fund Medicaid State Share Fund
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to provide a tax credit to medical providers in an amount equal to their investment in electronic medical record technology.
As written, this bill would provide a Health Care Provider Tax credit to medical providers for their investment in electronic medical record technology without consideration of their Health Care Provider Tax liability. The State Tax Department does not have access to the data necessary to calculate the revenue impact of this proposal. However, the reduction in the Medicaid State Share Fund as a result of passage of this bill could be significant.
Unless alternative matching funds are secured, the reduction in the Medicaid State Share Fund will result in a reduction in Federal Funds of roughly three times the tax reduction.
Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2009 Increase/Decrease (use"-") |
2010 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Passage of this bill would provide a Health Care Provider Tax credit to medical providers for their investment in electronic medical record technology without consideration of their Health Care Provider Tax liability. The State Tax Department does not have access to the data necessary to calculate the revenue impact of this proposal. However, the reduction in the Medicaid State Share Fund as a result of passage of this bill could be significant.
Unless alternative matching funds are secured, the reduction in the Medicaid State Share Fund will result in a reduction in Federal Funds of roughly three times the tax reduction.
Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us