Date Requested:February 25, 2011
Time Requested:11:23 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2146 Comm. Sub. SB319
CBD Subject: TAX CREDIT FOR CERTAIN MEDICAL PROVIDERS
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to establish a tax credit for medical providers who provide services at no charge to free health clinics in the state. The bill sets the amount of tax credit and authorizes the Tax Commissioner to promulgate rules.
    
    As written, this bill would provide a tax credit, effective got taxable years beginning after December 31, 2011, of $10,000 to physicians who provide at least 300 hours per tax year of physician’s services at no charge in one or more free health care facilities in this State. The credit would be applied against the physician’s Personal Income Tax liability with any available credit in excess of tax liability forfeited. The bill would require the 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. Also, the bill provides that the tax credit would be disallowed if a Neighborhood Investment Program Act Tax Credit (WV Code §11-13J et seq.) is allowed for the same credit base.
    
    According to our interpretation and based upon available data, passage of this bill would result in an annual reduction in the General Revenue Fund of roughly $23 million to $29 million beginning in FY2013. Since the bill would allow potential credit claimants to adjust their estimated payments for the credit, there may be a reduction in the General Revenue Fund of roughly $6 million to $7 million in FY2012.
    
    There would be no additional administrative costs to the State Tax Department associated with this bill.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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
3. Explanation of above estimates (including long-range effect):
    As written, this bill would provide a tax credit, effective got taxable years beginning after December 31, 2011, of $10,000 to physicians who provide at least 300 hours per tax year of physician’s services at no charge in one or more free health care facilities in this State. The credit would be applied against the physician’s Personal Income Tax liability with any available credit in excess of tax liability forfeited. The bill would require the 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. Also, the bill provides that the tax credit would be disallowed if a Neighborhood Investment Program Act Tax Credit (WV Code §11-13J et seq.) is allowed for the same credit base.
    
    According to our interpretation and based upon available data, passage of this bill would result in an annual reduction in the General Revenue Fund of roughly $23 million to $29 million beginning in FY2013. Since the bill would allow potential credit claimants to adjust their estimated payments for the credit, there may be a reduction in the General Revenue Fund of roughly $6 million to $7 million in FY2012.
    
    There would be no additional administrative costs to the State Tax Department associated with this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov