S.Amdt. 2880
What it does: Adds SEC. __. CREDIT FOR QUALIFIED EXPENDITURES FOR MEDICAL PROFESSIONAL MALPRACTICE INSURANCE on page 179, line 25
Sen. Richard J. Durbin (D-IL)What it changes
1 change to S. 1637
Adds SEC. __. CREDIT FOR QUALIFIED EXPENDITURES FOR MEDICAL PROFESSIONAL MALPRACTICE INSURANCE on page 179, line 25
Adds a sectionPrinted pageInserted: SEC. __. CREDIT FOR QUALIFIED EXPENDITURES FOR MEDICAL PROFESSIONAL MALPRACTICE INSURANCE.
Inserted: (a) In General.--Subpart D of part IV of subchapter A of chapter 1 (relating to business tax credits) is amended by adding at the end the following:
Inserted: "SEC. 45G. CREDIT FOR EXPENDITURES FOR MEDICAL PROFESSIONAL MALPRACTICE INSURANCE.
Inserted: "(a) General Rule.--For purposes of section 38, in the case of a taxpayer which is an eligible person, the medical malpractice insurance expenditure tax credit determined under this section for a covered year shall equal the applicable percentage of the qualified medical malpractice insurance expenditures incurred by an eligible person during the covered year.
Inserted: "(b) Applicable Percentage.--For purposes of subsection (a), the applicable percentage is--
Inserted: "(1) in the case of an eligible person described in subsection (c)(2)(A), 20 percent,
Inserted: "(2) in the case of an eligible person described in subsection (c)(2)(B), 10 percent, and
Inserted: "(3) in the case of an eligible person described in subsection (c)(2)(C), 15 percent.
Inserted: "(c) Definitions.--In this section:
Inserted: "(1) Covered year.--The term 'covered year' means taxable years beginning in 2004 and 2005.
Inserted: "(2) Eligible person.--The term 'eligible person' means--
Inserted: "(A) any physician (as defined in section 213(d)(4)) who practices in any surgical specialty or subspecialty, emergency medicine, obstetrics, anesthesiology or who does intervention work which is reflected in medical malpractice insurance expenditures,
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Inserted: "(B) any physician (as so defined) who practices in general medicine, allergy, dermatology, pathology, or any other specialty not otherwise described in this section, and
Inserted: "(C) any hospital, clinic, or long-term care provider, which meets applicable legal requirements to provide the health care services involved.
Inserted: "(3) Qualified medical malpractice insurance expenditure.--The term 'qualified medical malpractice insurance expenditure' means so much of any professional insurance premium, surcharge, payment or other cost or expense which is incurred by an eligible person in a covered year for the sole purpose of providing or furnishing general medical malpractice liability insurance for such eligible person as does not exceed twice the average of such costs for similarly situated eligible persons.
Inserted: "(d) Special Rules.--
Inserted: "(1) In general.--The credit determined under this section shall be claimed by the eligible person incurring the qualified medical malpractice insurance expenditure.
Inserted: "(2) Certification.--Each State, through its board of medical licensure and State board (or agency) regulating insurance, annually shall provide such information to the Secretary of Health and Human Services as is necessary to permit the Secretary to calculate average costs for purposes of subsection (c)(3) and to certify such average costs (rounded to the nearest whole dollar) to the Secretary of the Treasury on or before the 15th day of November of each year.
Inserted: "(e) Application of Section.--This section shall apply to qualified medical malpractice expenditures incurred after December 31, 2003.".
Inserted: (b) Credit Made Part of General Business Credit.--Section 38(b) (relating to current year business credit) is amended by striking "plus" at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ", plus", and by adding at the end the following new paragraph:
Inserted: "(16) the medical malpractice insurance expenditure tax credit determined under section 45G(a).".
Inserted: (c) Limitation on Carryback.--Section 39(d) (relating to transition rules) is amended by adding at the end the following new paragraph:
Inserted: "(11) No carryback of medical malpractice insurance expenditure tax credit before effective date.--No portion of the unused business credit for any taxable year which is attributable to the credit determined under section 45G may be carried back to any taxable year beginning before 2004.".
Inserted: (d) Denial of Double Benefit.--Section 280C (relating to certain expenses for which credits are allowable) is amended by adding at the end the following new subsection:
Inserted: "(d) Credit for Medical Malpractice Liability Insurance Premiums.--
Inserted: "(1) In general.--No deduction shall be allowed for that portion of the qualified medical malpractice insurance expenditures otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 45G (determined without regard to section 38(c)).
Inserted: "(2) Controlled groups.--In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 41(f)(5)) or a trade or business which is treated as being under common control with other trades or business (within the meaning of section 41(f)(1)(B)), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subparagraphs (A) and (B) of section 41(f)(1).".
Inserted: (e) Grants to Non-Profit Hospitals, Clinics, and Long-Term Care Providers.--
Inserted: (1) In general.--The Secretary of Health and Human Services, acting through the Administrator of the Health Resources and Services Administration, shall award grants to eligible non-profit hospitals, clinics, and long-term care providers to assist such hospitals, clinics, and long-term care providers in defraying qualified medical malpractice insurance expenditures.
Inserted: (2) Eligible non-profit hospital, clinic, or long-term care provider.--To be eligible to receive a grant under paragraph (1) an entity shall--
Inserted: (A) be a non-profit hospital, clinic, or long-term care provider;
Inserted: (B) be unable to claim the tax credit described in section 45G for the year for which an application is submitted under subparagraph (C); and
Inserted: (C) prepare and submit to the Secretary of Health and Human Services an application at such time, in such manner, and containing such information as the Secretary may require.
Inserted: (3) Amount of grant.--The amount of a grant to a non-profit hospital, clinic, or long-term care provider under paragraph (1) shall equal 15 percent of the amount of the qualified medical malpractice insurance expenditures of the hospital, clinic, or long-term care provider for the year involved.
Inserted: (4) Qualified medical malpractice insurance expenditure.--In this subsection, the term "qualified medical malpractice insurance expenditure" means so much of any professional insurance premium, surcharge, payment or other cost or expense which is incurred by a non-profit hospital, clinic, or long-term care provider in a year for the sole purpose of providing or furnishing general medical malpractice liability insurance for such hospital, clinic, or long-term care provider as does not exceed twice the average of such costs for similarly situated hospitals, clinics, or long-term care provider homes.
Inserted: (5) Authorization of appropriations.--There are authorized to be appropriated to carry out this subsection, such sums as may be necessary for each of fiscal years 2005 and 2006.
Inserted: (f) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
Inserted: "Sec. 45G. Credit for expenditures for medical professional malpractice insurance.".
Inserted: (g) Effective Date.--The amendments made by this section shall apply to expenditures incurred after December 31, 2003.
Original wording
On page 179, after line 25, insert the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
SA 2880. Mr. DURBIN submitted an amendment intended to be proposed by him to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows:
On page 179, after line 25, insert the following:
SEC. __. CREDIT FOR QUALIFIED EXPENDITURES FOR MEDICAL PROFESSIONAL MALPRACTICE INSURANCE.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1 (relating to business tax credits) is amended by adding at the end the following:
“SEC. 45G. CREDIT FOR EXPENDITURES FOR MEDICAL PROFESSIONAL MALPRACTICE INSURANCE.
“(a) General Rule.--For purposes of section 38, in the case of a taxpayer which is an eligible person, the medical malpractice insurance expenditure tax credit determined under this section for a covered year shall equal the applicable percentage of the qualified medical malpractice insurance expenditures incurred by an eligible person during the covered year.
“(b) Applicable Percentage.--For purposes of subsection (a), the applicable percentage is--
“(1) in the case of an eligible person described in subsection (c)(2)(A), 20 percent,
“(2) in the case of an eligible person described in subsection (c)(2)(B), 10 percent, and
“(3) in the case of an eligible person described in subsection (c)(2)(C), 15 percent.
“(c) Definitions.--In this section:
“(1) Covered year.--The term ‘covered year' means taxable years beginning in 2004 and 2005.
“(2) Eligible person.--The term ‘eligible person' means--
“(A) any physician (as defined in section 213(d)(4)) who practices in any surgical specialty or subspecialty, emergency medicine, obstetrics, anesthesiology or who does intervention work which is reflected in medical malpractice insurance expenditures,
“(B) any physician (as so defined) who practices in general medicine, allergy, dermatology, pathology, or any other specialty not otherwise described in this section, and
“(C) any hospital, clinic, or long-term care provider, which meets applicable legal requirements to provide the health care services involved.
“(3) Qualified medical malpractice insurance expenditure.--The term ‘qualified medical malpractice insurance expenditure' means so much of any professional insurance premium, surcharge, payment or other cost or expense which is incurred by an eligible person in a covered year for the sole purpose of providing or furnishing general medical malpractice liability insurance for such eligible person as does not exceed twice the average of such costs for similarly situated eligible persons.
“(d) Special Rules.--
“(1) In general.--The credit determined under this section shall be claimed by the eligible person incurring the qualified medical malpractice insurance expenditure.
“(2) Certification.--Each State, through its board of medical licensure and State board (or agency) regulating insurance, annually shall provide such information to the Secretary of Health and Human Services as is necessary to permit the Secretary to calculate average costs for purposes of subsection (c)(3) and to certify such average costs (rounded to the nearest whole dollar) to the Secretary of the Treasury on or before the 15th day of November of each year.
“(e) Application of Section.--This section shall apply to qualified medical malpractice expenditures incurred after December 31, 2003.”.
(b) Credit Made Part of General Business Credit.--Section 38(b) (relating to current year business credit) is amended by striking “plus” at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting “, plus”, and by adding at the end the following new paragraph:
“(16) the medical malpractice insurance expenditure tax credit determined under section 45G(a).”.
(c) Limitation on Carryback.--Section 39(d) (relating to transition rules) is amended by adding at the end the following new paragraph:
“(11) No carryback of medical malpractice insurance expenditure tax credit before effective date.--No portion of the unused business credit for any taxable year which is attributable to the credit determined under section 45G may be carried back to any taxable year beginning before 2004.”.
(d) Denial of Double Benefit.--Section 280C (relating to certain expenses for which credits are allowable) is amended by adding at the end the following new subsection:
“(d) Credit for Medical Malpractice Liability Insurance Premiums.--
“(1) In general.--No deduction shall be allowed for that portion of the qualified medical malpractice insurance expenditures otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 45G (determined without regard to section 38(c)).
“(2) Controlled groups.--In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 41(f)(5)) or a trade or business which is treated as being under common control with other trades or business (within the meaning of section 41(f)(1)(B)), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subparagraphs (A) and (B) of section 41(f)(1).”.
(e) Grants to Non-Profit Hospitals, Clinics, and Long-Term Care Providers.--
(1) In general.--The Secretary of Health and Human Services, acting through the Administrator of the Health Resources and Services Administration, shall award grants to eligible non-profit hospitals, clinics, and long-term care providers to assist such hospitals, clinics, and long-term care providers in defraying qualified medical malpractice insurance expenditures.
(2) Eligible non-profit hospital, clinic, or long-term care provider.--To be eligible to receive a grant under paragraph (1) an entity shall--
(A) be a non-profit hospital, clinic, or long-term care provider;
(B) be unable to claim the tax credit described in section 45G for the year for which an application is submitted under subparagraph (C); and
(C) prepare and submit to the Secretary of Health and Human Services an application at such time, in such manner, and containing such information as the Secretary may require.
(3) Amount of grant.--The amount of a grant to a non-profit hospital, clinic, or long-term care provider under paragraph (1) shall equal 15 percent of the amount of the qualified medical malpractice insurance expenditures of the hospital, clinic, or long-term care provider for the year involved.
(4) Qualified medical malpractice insurance expenditure.--In this subsection, the term “qualified medical malpractice insurance expenditure” means so much of any professional insurance premium, surcharge, payment or other cost or expense which is incurred by a non-profit hospital, clinic, or long-term care provider in a year for the sole purpose of providing or furnishing general medical malpractice liability insurance for such hospital, clinic, or long-term care provider as does not exceed twice the average of such costs for similarly situated hospitals, clinics, or long-term care provider homes.
(5) Authorization of appropriations.--There are authorized to be appropriated to carry out this subsection, such sums as may be necessary for each of fiscal years 2005 and 2006.
(f) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
“Sec. 45G. Credit for expenditures for medical professional malpractice insurance.”.
(g) Effective Date.--The amendments made by this section shall apply to expenditures incurred after December 31, 2003.
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Senate amendment submitted
March 22, 2004