PRINTER'S NO. 454
No. 433 Session of 2003
INTRODUCED BY CONTI, COSTA, ERICKSON, GREENLEAF, LOGAN, MOWERY,
ROBBINS AND TOMLINSON, MARCH 10, 2003
REFERRED TO FINANCE, MARCH 10, 2003
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for a medical care availability and
11 reduction of error tax credit.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding an article to
16 read:
17 ARTICLE XVIII-C
18 MEDICAL CARE AVAILABILITY AND REDUCTION
19 OF ERROR TAX CREDIT
20 Section 1801-C. Scope.
21 This article establishes a certain credit against State tax
22 liability for assessments imposed under section 701(e)(1) of the
1 act of October 15, 1975 (P.L.390, No.111), known as the Health
2 Care Services Malpractice Act, by the Insurance Department on
3 hospitals and physicians.
4 Section 1802-C. Definitions.
5 The following words and phrases when used in this article
6 shall have the meanings given to them in this section unless the
7 context clearly indicates otherwise:
8 "Department." The Department of Revenue of the Commonwealth.
9 "Hospital." An entity licensed as a hospital under the act
10 of June 13, 1967 (P.L.31, No.21), known as the Public Welfare
11 Code, or the act of July 19, 1979 (P.L.130, No.48), known as the
12 Health Care Facilities Act.
13 "Mcare Act." The act of March 20, 2002 (P.L.154, No.13),
14 known as the Medical Care Availability and Reduction of Error
15 (Mcare) Act.
16 "Physician." An individual licensed under the laws of this
17 Commonwealth to engage in the practice of:
18 (1) medicine and surgery in all its branches, within the
19 scope of the act of December 20, 1985 (P.L.457, No.112),
20 known as the Medical Practice Act of 1985; or
21 (2) osteopathic medicine and surgery, within the scope
22 of the act of October 5, 1978 (P.L.1109, No.261), known as
23 the Osteopathic Medical Practice Act.
24 Section 1803-C. Tax credit.
25 The department shall provide a credit for any tax liability
26 imposed pursuant to Article III or IV in an amount equal to 25%
27 of the assessments imposed under section 701(e)(1) of the act of
28 October 15, 1975 (P.L.390, No.111), known as the Health Care
29 Services Malpractice Act, by the Insurance Department on
30 physicians required as a condition of licensure under Chapter 7
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1 of the Mcare Act for each physician not exempt under section
2 711(j) of the Mcare Act. If a hospital provides to a physician
3 the assessments imposed under section 701(e)(1) of the Health
4 Care Services Malpractice Act by the Insurance Department and
5 required as a condition of licensure, a credit of 10% shall be
6 claimed by the hospital.
7 Section 1804-C. Sunset.
8 The provisions of this article shall expire on June 30, 2005.
9 Section 2. This act shall apply to taxable years beginning
10 after December 31, 2002.
11 Section 3. This act shall take effect immediately.
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