Medical Malpractice Relief Act of 2004 - Amends the Internal Revenue Code to allow a business tax credit for taxable years beginning in 2004 or 2005 for expenditures for medical professional malpractice insurance. Allows a credit for: (1) 20 percent of the malpractice insurance expenditures of a physician who practices in any surgical specialty or subspecialty, emergency medicine, obstetrics, or anesthesiology or who does intervention work which is reflected in medical malpractice insurance expenditures; (2) ten percent of such expenditures of a physician who practices in general medicine, allergy, dermatology, pathology, or other specialty; and (3) 15 percent of such expenditures of any hospital, clinic, or long-term care provider. Limits the amount of expenditures that may be taken into account to twice the average of costs of medical malpractice insurance for similarly situated health care providers, as determined by the Secretary of Health and Human Services.
Directs the Secretary, acting through the Administrator of the Health Resources and Services Administration, to make grants to certain non-profit hospitals, clinics, and long-term care providers to assist such entities in defraying their medical malpractice insurance expenditures. Limits the amount of such grants to 15 percent of the medical malpractice insurance expenditures incurred by such entities in any year.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4124 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4124
To amend the Internal Revenue Code of 1986 to allow a business credit
for qualified expenditures for medical professional malpractice
insurance.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2004
Mr. Sandlin (for himself, Ms. Kaptur, Mr. Frost, Mr. Bell, Mr. Crowley,
Ms. Eddie Bernice Johnson of Texas, Ms. Berkley, Mr. Ross, Mr. Larson
of Connecticut, Mr. Cardoza, Mr. Strickland, Mr. Gonzalez, Mr. Berry,
Mr. Clay, Mr. Israel, Mr. Ruppersberger, Mr. Moore, Mr. Reyes, Ms.
Solis, Mr. Honda, Mr. Lampson, Mr. Ford, Mr. Meeks of New York, Mr.
Edwards, Mr. Doggett, Mr. Turner of Texas, Mr. Green of Texas, Mr.
Baird, Mr. Lewis of Georgia, Mr. Boswell, and Mr. Thompson of
California) 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 business credit
for qualified expenditures for medical professional malpractice
insurance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Medical Malpractice Relief Act of
2004''.
SEC. 2. CREDIT FOR QUALIFIED EXPENDITURES FOR MEDICAL PROFESSIONAL
MALPRACTICE INSURANCE.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (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 an
eligible person, the medical malpractice insurance expenditure tax
credit determined under this section for a taxable year is the amount
equal to the applicable percentage of qualified medical malpractice
insurance expenditures.
``(b) Limitation.--
``(1) In general.--The amount of qualified medical
malpractice insurance expenditures taken into account under
subsection (a) for a taxable year with respect to an eligible
person shall not exceed the amount equal to twice the average
of costs of qualified medical malpractice insurance for
similarly situated eligible persons.
``(2) Average costs.--For purposes of paragraph (1), the
Secretary of Health and Human Services, after consultation with
State boards of medical licensure and State boards (or
agencies) regulating insurance, shall--
``(A) determine average costs (rounded to the
nearest whole dollar) of providing or furnishing
general medical malpractice liability insurance to
eligible persons, and
``(B) certify the amount of such costs to the
Secretary on or before the 15th day of November of each
year.
``(c) Definitions and Special Rule.--For purposes of this section--
``(1) Qualified medical malpractice insurance
expenditure.--
``(A) In general.--The term `qualified medical
malpractice insurance expenditure' means so much of any
professional insurance premium, surcharge, payment, or
other cost or expense which is paid or incurred in the
taxable year by an eligible person for the sole purpose
of providing or furnishing general medical malpractice
liability insurance for such eligible person.
``(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) Applicable percentage.--The applicable percentage
is--
``(A) 20 percent in the case of a person described
in paragraph (2)(A),
``(B) 10 percent in the case of a person described
in paragraph (2)(B), and
``(C) 15 percent in the case of a person described
in paragraph (2)(C).
``(4) Similarly situated.--The determination of whether
persons are similarly situated shall be made on the basis of
medical practices primarily located within a statistical area
(as defined in section 142(k)(2)) and shall differentiate
between specialty and subspecialty medical practices.
``(d) Election not to Claim Credit.--This section shall not apply
to a taxpayer for any taxable year if such taxpayer elects to have this
section not apply for such taxable year.
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2005.''.
(b) Credit Made Part of General Business Credit.--Section 38(b) of
such Code (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) of such Code (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 January 1,
2004.''.
(d) Denial of Double Benefit.--Section 280C of such Code (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 an organization described in section 501(c)
of the Internal Revenue Code of 1986 and exempt from
tax under section 501(a) of such Code 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 of such Code 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 taxable years beginning after December 31, 2003.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR E513)
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