2023 -- H 5629

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LC000907

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

     

     Introduced By: Representatives Sanchez, Morales, Ajello, Knight, Newberry, Potter,
Nardone, Costantino, and Messier

     Date Introduced: February 15, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 44-30 of the General Laws entitled "Personal Income Tax" is hereby

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amended by adding thereto the following section:

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     44-30-8. Credit for medical services to Medicaid patients.

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     (a) A taxpayer shall be allowed a credit against the tax imposed by chapters 11, 17 or 30

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of this title, if the taxpayer is a licensed medical professional or medical facility and has directly

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provided health care services in exchange for payment by the Rhode Island Medicaid program.

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     (b) The amount of the credit provided by subsection (a) of this section shall be the lesser

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of forty percent (40%) of the Medicaid payment earnings or thirty thousand dollars ($30,000).

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     (c) If the allowable amount of the credit exceeds the taxes due, the amount of the credit not

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used shall be treated as overpayment of taxes and refunded to the claimant from balances retained

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by the general treasurer for general purposes. No interest is allowed on any payment made pursuant

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to this section.

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     (d) In the event the taxpayer is a partnership, joint venture or business entity, the credit is

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divided in the same manner as income.

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     SECTION 2. This act shall take effect upon passage.

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LC000907

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- PERSONAL INCOME TAX

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     This act would allow a state income tax credit of the lesser of thirty thousand dollars

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($30,000) or forty percent (40%) of Medicaid earnings where a medical provider accepts Medicaid

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payments.

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     This act would take effect upon passage.

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LC000907

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