Rural Physicians Relief Act of 2006

Rural Physicians Relief Act of 2006 - Amends the Internal Revenue Code to allow certain primary health services providers (i.e., physicians and licensed mental health care practitioners) a tax credit of $1,000 for each month such providers provide medical care to rural patients in certain sparsely populated areas of the United States.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2789 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2789

 To amend the Internal Revenue Code of 1986 to provide a tax credit to 
                    rural primary health providers.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 11, 2006

  Mr. Burns (for himself and Ms. Murkowski) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide a tax credit to 
                    rural primary health providers.

    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 ``Rural Physicians Relief Act of 
2006''.

SEC. 2. NONREFUNDABLE CREDIT FOR RURAL PRIMARY HEALTH SERVICES 
              PROVIDERS .

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. RURAL PRIMARY HEALTH SERVICES PROVIDERS.

    ``(a) Allowance of Credit.--In the case of an individual who is a 
qualified primary health services provider for any month during the 
taxable year, there shall be allowed as a credit against the tax 
imposed by this chapter for such taxable year an amount equal to $1,000 
for each month during such taxable year--
            ``(1) which is part of the eligible service period of such 
        individual, and
            ``(2) for which such individual is a qualified primary 
        health services provider.
    ``(b) Qualified Primary Health Services Provider.--For purposes of 
this section, the term `qualified primary health services provider' 
means, with respect to any month, any physician who is certified for 
such month by the Bureau to be a primary health services provider or a 
licensed mental health provider who--
            ``(1) is primarily providing primary health services, and 
        either--
                    ``(A) substantially all of such primary health 
                services are provided in frontier areas (within the 
                meaning of section 330I(r) of the Public Health Service 
                Act), or
                    ``(B) such primary health services are provided in 
                a practice which includes rural patients from frontier 
                areas (as so defined) in a percentage of the total 
                practice which is at least equal to the percentage of 
                total residents in the State in which such practice is 
                located who reside in frontier areas (as so defined),
            ``(2) is not receiving during the calendar year which 
        includes such month a scholarship under the National Health 
        Service Corps Scholarship Program or the Indian health 
        professions scholarship program or a loan repayment under the 
        National Health Service Corps Loan Repayment Program or the 
        Indian Health Service Loan Repayment Program,
            ``(3) is not fulfilling service obligations under such 
        Programs, and
            ``(4) has not defaulted on such obligations.
Such term shall not include any individual who is described in 
paragraph (1) with respect to any of the 3 most recent months ending 
before the date of the enactment of this section.
    ``(c) Eligible Service Period.--For purposes of this section, the 
term `eligible service period' means the period of 60 consecutive 
calendar months beginning with the first month the taxpayer is a 
qualified primary health services provider.
    ``(d) Other Definitions and Special Rule.--For purposes of this 
section--
            ``(1) Bureau.--The term `Bureau' means the Bureau of Health 
        Care Delivery and Assistance, Health Resources and Services 
        Administration of the United States Public Health Service.
            ``(2) Physician.--The term `physician' has the meaning 
        given to such term by section 1861(r) of the Social Security 
        Act.
            ``(3) Primary health services provider.--The term `primary 
        health services provider' means a provider of basic health 
        services (as described in section 330(b)(1)(A)(i) of the Public 
        Health Service Act).
            ``(4) Only 60 months taken into account.--In no event shall 
        more than 60 months be taken into account under subsection (a) 
        by any individual for all taxable years.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Rural primary health services providers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.
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