First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0360.01 Esther van Mourik x4215HOUSE BILL 15-1143 HOUSE SPONSORSHIP Conti, Primavera, Roupe, Tate SENATE SPONSORSHIP Crowder, House Committees Senate Committees Health, Insurance, & Environment Finance Appropriations A BILL FOR AN ACT Concerning a tax incentive for home health care. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) This bill creates a five-year income tax credit for a percentage of the costs incurred by a qualifying senior for durable medical equipment, telehealth equipment, home modifications, or home health care services in each income tax year, subject to a maximum amount, in order to assist the qualifying senior with seeking health care in his or her home. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 39-22-538 as follows: 39-22-538. Credit for home health care equipment and services - legislative declaration - definitions - repeal. (1) The general assembly declares that the purpose of the tax expenditure in this section is to make it more affordable for qualifying seniors with an illness, injury, or other condition to be able to seek health care in their homes. (2) As used in this section, unless the context otherwise requires: (a) "Costs" means any out-of-pocket costs incurred by the qualifying senior as documented by receipt, including the cost of any labor necessary to make home modifications. (b) "Credit certificate" means a certificate signed by a regulated health care professional or an authorized representative of a licensed home care agency or a regulated home care placement agency that lists in detail the durable medical equipment, home health care services, telehealth equipment, or household modifications necessary for a qualifying senior's home health care. (c) (I) "Durable medical equipment" means equipment, including repair and replacement parts for such equipment, approved in a credit certificate that: (A) Can withstand repeated use; (B) Is primarily and customarily used to serve a medical purpose; (C) Is generally not useful to a person in the absence of illness or injury; and (D) Is not worn in or on the body. (II) "Durable medical equipment" includes, but is not limited to, hospital beds, intravenous poles and pumps, trapeze bars, toileting aids, bath and shower aids, standing aids, adaptive car seats, communication devices, and any related accessories for such items. (d) "Home health care services" means the medical or nonmedical services provided under a plan of care developed by a regulated health care professional, a licensed home care agency, or a regulated home care placement agency at a private residence and approved in a credit certificate. (e) "Home modification" means the costs of making modifications to a private residence that are deductible as medical expenses on a qualifying senior's federal tax return and approved in a credit certificate. (f) "Private residence" means a qualifying senior's home, either in a single-family residence or a multi-family residence, that is located in Colorado. Private residence does not include a skilled nursing facility, assisted living facility, hospital, or other licensed health facility. (g) "Qualifying senior" means a Colorado resident at such age where he or she would meet medicare's age requirement in the income tax year for which the credit is claimed. (h) "Telehealth equipment" means equipment necessary due to a person's diminishing ability and approved in a credit certificate for telemedicine as defined in section 12-36-102.5 (8), C.R.S., or for the remote monitoring of clinical data through electronic information processing technologies. (3) (a) For any income tax year commencing on or after January 1, 2015, but prior to January 1, 2020, there is allowed to any qualifying senior as a credit against the tax imposed by this article a percentage, as set forth in paragraph (b) of this subsection (3), not to exceed five thousand dollars per income tax year, of the costs incurred by the qualifying senior for durable medical equipment, telehealth equipment, home modifications, or home health care services in each income tax year. (b) The percentage of the costs incurred shall be as follows: (I) For a single return: Federal taxable income: Percentage of the costs incurred: $0 - $45,000 70% $45,001 - $90,000 35% More than $90,000 0% (II) For a joint return: Federal taxable income: Percentage of the costs incurred: $0 - $90,000 70% $90,001 - $180,000 35% More than $180,000 0% (4) If the credit allowed in subsection (3) of this section exceeds the amount of income tax due on the income of the qualifying senior for the tax year during which the costs were incurred, the amount of the tax credit not used as an offset against income taxes in such income tax year may not be allowed as a refund, but may be carried forward and applied against the income tax due in each of the three succeeding income tax years, and must first be applied against the income tax due for the earliest of the income tax years possible. (5) No later than January 31, 2016, and each January 31 through January 31, 2020, the department of regulatory agencies or the department of public health and environment shall provide the department of revenue with a list of all health care professionals regulated in the previous calendar year, all home care agencies licensed in the previous calendar year, and all home care placement agencies regulated in the previous calendar year. (6) This section is repealed, effective December 31, 2024. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.