TITLE: CONCERNING THE ESTABLISHMENT OF A CREDIT AGAINST THE COLORADO INCOME TAX FOR HEALTH CARE PROFESSIONALS PRACTICING IN HEALTH CARE PROFESSIONAL SHORTAGE AREAS.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund		General Fund Revenue Reduction
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: TABOR Impact
Effective Date: 90 days after adjournment
Appropriation Summary for FY 1999-2000: None required
Local Government Impact: None

This bill establishes an individual income tax credit for health care professionals practicing in health care professional shortage areas for income tax years commencing on or after January 1, 2001, but prior to January 1, 2006. The income tax credit would be available to any health care professional (a physician, physician assistant, or nurse who is licensed or certified) who has resided and practiced in a health care shortage area for a period of not less than 180 days of the income tax year and has committed to residing and practicing in the area for at least three years. A health care shortage area is a federally designated health professional shortage area, as defined in Section 254e of the Federal “Public Health Service Act”, 42 U.S.C. sec. 201 et seq. The income tax credit would equal the taxpayer’s actual income tax liability. The aggregate amount of the credit authorized to be claimed would be the amount of student loans made to finance higher education opportunities resulting in a medical, physician assistant, or nursing degree.

The taxpayer must obtain a certification form from the Department of Public Health and Environment that certifies that the taxpayers has satisfied the requirements for allowance of the credit. If the taxpayer moves out of a health care professional shortage area during the three-year period that the taxpayer was committed to reside and practice in the area, the taxpayer would be required to refund the entire amount of the total credit claimed.

The bill would reduce state General Fund revenues beginning in FY 2000-01. Therefore, the bill is assessed as having state fiscal impact.

The number of health care professionals that will be encouraged to practice in an area designated as a health care professional shortage area between 2001 and 2006, that will have qualified outstanding student loans, is not known. Therefore, the potential state General Fund revenue reduction that will occur as a result of this income tax credit has not been identified. It is, however, believed to be greater than $5,000 annually beginning in FY 2000-01.

The fiscal note implies that no new state appropriations or spending authority are required to implement the provisions of the bill in FY 1999-00.