Second Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 16-0419.01 Esther van Mourik x4215HOUSE BILL 16-1065 HOUSE SPONSORSHIP Conti, SENATE SPONSORSHIP (None), House Committees Senate Committees Health, Insurance, & Environment Finance A BILL FOR AN ACT Concerning the creation of an income tax credit 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.) The bill creates an income tax credit to assist a qualifying senior with seeking health care in his or her home. In the first 2-years, the tax credit is for a percentage of the costs incurred by the qualifying senior for home modifications in each income tax year. In the next 2-years, the tax credit is for a percentage of the costs incurred by the qualifying senior for home modifications or home health care services in each income tax year. In the following 2-years, the tax credit is for a percentage of the costs incurred by the qualifying senior for home modifications, home health care services, durable medical equipment, or telehealth equipment in each income tax year. In each year the income tax credit is subject to a maximum amount. The bill also specifies that if the revenue estimate prepared by the staff of the legislative council in December 2015 and each December thereafter indicates that the amount of the total general fund revenues, including the impact of the tax credit allowed in this bill and including the impact of any other tax expenditures that have the same trigger, for that particular fiscal year will not be sufficient to grow the total state general fund appropriations by 6% over such appropriations for the previous fiscal year, then the credit is not allowed for any income tax year commencing during the calendar year following the year in which the estimate is prepared; except that any taxpayer who would have been eligible to claim a credit in the income tax year in which the credit is not allowed is allowed to claim the credit earned in such income tax year in the next income tax year in which the estimate indicates that the amount of the total general fund revenues will be sufficient to grow the total state general fund appropriations by 6% over such appropriations for the previous fiscal year. 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) "ADA standards for accessible design" means the standards set forth in 28 CFR 36 and promulgated in accordance with the federal "Americans with Disabilities Act of 1990", as amended, 42 U.S.C. sec. 12101 et seq. (b) "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. (c) "Credit certificate" means a certificate signed by a licensed physician, doctor of medicine, doctor of osteopathic medicine, physician's assistant, nurse practitioner, or a home care agency's coordinator of care 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. (d) (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 hospital beds, intravenous poles and pumps, trapeze bars, toileting aids, bath and shower aids, standing aids, personal emergency medical alert devices, and adaptive car seats. (e) "Home health care services" means the medical or nonmedical services provided under a plan of care developed by a licensed home care agency at a private residence and approved in a credit certificate. (f) "Home modification" means the costs of materials and labor as approved in a credit certificate for installing a stair lift, wheelchair lift, ceiling or patient lift, an entrance ramp, a walk-in or roll-in shower, a walk-in tub, a toilet or toilet accessory, or for widening entrance doors or making sinks accessible, so that the private residence meets ADA standards for accessible design. (g) "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. (h) "Qualifying senior" means a Colorado resident who is seventy-five years or older. (i) "Telehealth equipment" means a home glucose monitoring device, a home blood pressure monitoring device, a home electrocardiogram device, a chronic obstructive pulmonary disorder monitor, a weight scale, a body fat monitor, or home monitors for rescue inhaler use, inner ear infection detection, or oxygen saturation. (3) (a) (I) Except as provided in subsection (4) of this section, for any income tax year commencing on or after January 1, 2016, but prior to January 1, 2018, 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 three thousand dollars per income tax year, of the costs incurred by the qualifying senior for home modifications in each income tax year. (II) Except as provided in subsection (4) of this section, for any income tax year commencing on or after January 1, 2018, 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 three thousand dollars per income tax year, of the costs incurred by the qualifying senior for home modifications or home health care services in each income tax year. (III) Except as provided in subsection (4) of this section, for any income tax year commencing on or after January 1, 2020, but prior to January 1, 2022, 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 three thousand dollars per income tax year, of the costs incurred by the qualifying senior for home modifications, home health care services, durable medical equipment, or telehealth equipment 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 - $25,000 70% $25,001 - $45,000 35% More than $45,000 0% (II) For a joint return: Federal taxable income: Percentage of the costs incurred: $0 - $50,000 70% $50,001 - $90,000 35% More than $90,000 0% (c) To claim the tax credit allowed in this section, the qualifying senior shall attach a copy of the credit certificate to his or her tax return. No tax credit is allowed under this section unless the qualifying senior provides the copy of the credit certificate. Notwithstanding any other provision of law, the department of revenue has the authority to review all necessary records related to the claiming of the tax credit allowed in this section. Should the qualified senior refuse to allow the department of revenue to review any necessary records, the department of revenue shall deny the tax credit. (4) (a) If the revenue estimate prepared by the staff of the legislative council in December 2015 and each December thereafter indicates that the amount of the total general fund revenues, including the impact of the tax credit allowed in this section and including the impact of any other tax expenditure that have the same trigger, for that particular fiscal year will not be sufficient to grow the total state general fund appropriations by six percent over such appropriations for the previous fiscal year, then the credit authorized in this section shall not be allowed for any income tax year commencing during the calendar year following the year in which the estimate is prepared; except that any taxpayer who would have been eligible to claim a credit pursuant to this section in the income tax year in which the credit is not allowed shall be allowed to claim the credit earned in such income tax year in the next income tax year in which the estimate indicates that the amount of the total general fund revenues, including the impact of the tax credit allowed in this section and including the impact of any other tax expenditure that have the same trigger, will be sufficient to grow the total state general fund appropriations by six percent over such appropriations for the previous fiscal year. (b) The department of revenue shall, through its website, specify on or before July 1, 2016, and January 1, 2017, and on or before each January 1 thereafter, whether the credit authorized in this section shall be allowed for a given income tax year pursuant to paragraph (a) of this subsection (4). (5) 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 and may not be carried forward. (6) The department of public health and environment shall, in a sufficiently timely manner to allow the department of revenue to process returns claiming the credit allowed by this section, provide the department of revenue with a list of all home care agencies licensed in the previous calendar year. (7) This section is repealed, effective December 31, 2026. 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.