Introduced Version Senate Bill 489 History

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Key: Green = existing Code. Red = new code to be enacted

FISCAL NOTEWEST virginia Legislature

2016 regular session


Senate Bill 489

By Senators Takubo, Stollings, Plymale and Ferns

[Introduced February 3, 2016;
Referred to the Committee on Finance.

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §11-13DD-1, §11-13DD-2, §11-13DD-3, §11-13DD-4, §11-13DD-5, §11-13DD-6, §11-13DD-7, §11-13DD-8 and §11-13DD-9, all relating to establishing tax credit for certain physicians who relocate to this state to practice; providing for criteria for the tax credit; establishing education requirements; setting forth time limit to claim tax credit; setting forth length or residency requirements; setting forth finding; defining terms; authorizing the credit; specifying amount of tax credit; providing how credit may be asserted; specifying no tax credit carryover; allowing forms and schedules to be established by Tax Commissioner in rule; setting maximum amount per taxpayer per year; authorizing Tax Commissioner to promulgate rules; and setting effective date.

Be it enacted by the Legislature of West Virginia:

That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §11-13DD-1, §11-13DD-2, §11-13DD-3, §11-13DD-4, §11-13DD-5, §11-13DD-6, §11-13DD-7, §11-13DD-8 and §11-13DD-9, all to read as follows:


§11-13DD-1. Legislative findings.

The Legislature finds that West Virginia suffers from a tremendous lack of physicians practicing within our state.  This creates a crisis in the delivery of health care services to one of the unhealthiest populations in the nation.  As a state we need to seek ways to attract qualified physicians to locate here to provide our citizens necessary health care services and to promote the general good health of this state.

§11-13DD-2.  Definitions.

(a) General. -- When used in this article, or in the administration of this article, terms defined in this section have the meanings ascribed to them by this section, unless a different meaning is clearly required by the context in which the term is used.

(b) Terms defined.

(1) “Eligible taxpayer” means any physician as that term is defined in this article who locates to practice medicine in West Virginia.

(2) “Accredited medical school” means a medical school accredited by either the Liaison Committee on Medical Education or the American Osteopathic Association Commission on Osteopathic College Accreditation.

(3) “Physician” means any allopathic or osteopathic doctor licensed to practice medicine in this state pursuant to the provisions of either article three or article fourteen of chapter thirty of this code and who graduated from an accredited medical school in the United States and completed an approved residency or fellowship program within the preceding twelve months from the time they claim the tax credit.

(4) “Physician practice” or “practice” means the delivery of health care services by a licensed physician pursuant to the scope of practice and licensing requirements of chapter thirty and other applicable laws of this state.

§11-13DD-3.  Eligibility for tax credits; creation of the credit.

Every eligible taxpayer is allowed a credit against the tax payable under article twenty-one of this chapter.  To be eligible, the taxpayer must be an eligible physician as defined in this article and licensed in West Virginia pursuant to the provisions of article three or article fourteen of chapter thirty of this code.  The eligible physician must be a graduate of an accredited allopathic or osteopathic medical school located in the United States.  The amount of this credit is determined and applied as provided in this article. 

§11-13DD-4.  Amount of credit allowed.

The maximum allowable amount of annual credit allowable under this article to an eligible taxpayer is $10,000.  This amount may be claimed for three consecutive years for a total not to exceed $30,000.

§11-13DD-5.  Excess credit forfeited.

After application of the credit against tax under this article for the tax year, the amount of tax credit remaining and not used, if any, is forfeited.  Unused credit may not be carried back to any prior tax year and does not carry forward to any subsequent tax year.

§11-13DD-6.  Application of credit; schedules; estimated taxes.

(a) The credit allowed under this article is applied against the tax payable by the eligible taxpayer under article twenty-one of this chapter.

(b) To assert this credit against tax, the eligible taxpayer shall prepare and file with its annual tax return filed under article twenty-one of this chapter, such forms and schedules as the Tax Commissioner may require.

(c) An eligible taxpayer may consider the amount of credit allowed under this article when determining the eligible taxpayer’s liability under article twenty-one of this chapter for periodic payments of estimated tax for the tax year, in accordance with the procedures and requirements prescribed by the Tax Commissioner.

(d) Any charitable deduction, or other deduction, decreasing adjustment or decreasing modification taken by any taxpayer in determining federal taxable income which affects West Virginia taxable income under article twenty-one of this chapter, or taken by any taxpayer in determining West Virginia taxable income under article twenty-one of this chapter for the taxable year, shall be added to West Virginia taxable income in determining the tax liability of the taxpayer under article twenty-one of this chapter, before application of the credit allowed under this article for the taxable year, if the deduction, adjustment of modification is the result of, or is calculated or determined based on, physician meeting all of the requirements of this article and any applicable rules promulgated by the Tax Commissioner.

§11-13DD-7.  Legislative rules.

The Tax Commissioner may propose for legislative approval pursuant to the provisions of article three, chapter twenty-nine-a of this code any rules that may be necessary to execute the purposes of this article.  These rules shall include:

(1) Residency requirements;

(2) A time limit on claiming the tax credit which may not exceed three years;

(3) A means to repay the tax credit should the physician not remain and practice medicine in West Virginia for a six year period;

(4) Forms and timeframes; and

(5) Anything else necessary to accomplish the requirements of this article.

§11-13DD-8.  Construction of article; burden of proof.

The provisions of this article shall be reasonably construed.  The burden of proof is on the person claiming the credit allowed by this article to establish by clear and convincing evidence that the person is entitled to the amount of credit asserted for the taxable year.

§11-13DD-9.  Effective date.

The credit provided under this article is available for tax years beginning after December 31, 2016.


NOTE: The purpose of this bill is to establish a tax credit for physicians who are new graduates and locate in West Virginia to practice medicine for at least six years.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.

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