H.R. 5849 – Charity Care Tax Deduction for Physicians Act of 2012

112th CONGRESS

2d Session

H. R. 5849

IN THE HOUSE OF REPRESENTATIVES

May 18, 2012

Mr. Schilling introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a deduction for charity care provided by physicians.

Short title

This Act may be cited as the Charity Care Tax Deduction for Physicians Act of 2012.

Physician charity care deduction

(a)

In general

Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

199A.

Physician charity care

(a)

In general

In the case of a physician, there shall be allowed as a deduction an amount equal to the amount such physician would have otherwise charged for qualified charity care provided by such physician during the taxable year.

(b)

Qualified charity care

For purposes of this section—

(1)

Qualified charity care

The term qualified charity care means physicians’ services (as defined in section 1861(q) of the Social Security Act) provided on a volunteer or pro bono basis.

(2)

Physician

The term physician has the meaning given to such term in section 1861 of the Social Security Act (42 U.S.C. 1395x(r)).

(c)

Limitations

(1)

Service charge limitation

The amount determined under subsection (a) with respect to any services—

(A)

shall be reduced by any reimbursement for such services, and

(B)

shall not exceed the medicare economic index (referred to in the fourth sentence of section 1842(b)(3) of the Social Security Act (42 U.S.C. 1395u(b)(3)) applicable to the services provided.

In the case of physicians’ services to which the medicare economic index is not applicable, the Secretary, in consultation with the Secretary of Health and Human Services, shall use data on uncompensated care for purposes of the limitation under subparagraph (B), and may adjust such data so as to be an appropriate proxy, including a downward adjustment to eliminate bad debt data from uncompensated care data.

(2)

Overall limitation

The amount allowed as a deduction under subsection (a) for any taxable year shall not exceed an amount equal to 10 percent of the gross income of the taxpayer for the taxable year derived from the taxpayer’s provision of physicians’ services (as defined in section 1861(q) of the Social Security Act).

(b)

Clerical amendment

The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item:

Sec. 199A. Physician charity care.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Charity Care Tax Deduction for Physicians Act of 2012

Legislative Activity

Bill Text