First Regular Session
Sixty-second General Assembly
LLS NO. 99-0687.01 Bob Lackner HOUSE BILL 99-1291
STATE OF COLORADO
BY REPRESENTATIVE Young
FINANCE
A BILL FOR AN ACT
101 CONCERNING THE ESTABLISHMENT OF A CREDIT AGAINST THE COLORADO
102 INCOME TAX FOR HEALTH CARE PROFESSIONALS PRACTICING IN
103 HEALTH CARE PROFESSIONAL SHORTAGE AREAS.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Defines "health care professional shortage area" as an area
designated under federal law by the secretary of the federal department
of health and human services.
Provides that, subject to certain limitations, for income tax years
commencing on or after January 1, 2001, but prior to January 1, 2006, an
amount equal to a set percentage of the state income tax liability of
physicians, physician assistants, and nurses who reside and practice in
health care professional shortage areas may be credited against their state
income tax obligations. Specifies the eligibility requirements for the
credit.
Requires the department of public health and environment to
certify that the health care professional qualifies for the credit.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 1 of article 22 of title 39, Colorado Revised
3 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
4 read:
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
1 39-22-122. Credit for health care professionals practicing in
2 health care professional shortage areas - legislative declaration -
3 definitions. (1) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES
4 THAT ALL PERSONS IN THIS STATE SHOULD HAVE ACCESS TO ADEQUATE
5 HEALTH CARE WITHOUT REGARD TO GEOGRAPHIC LOCATION. THE
6 GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT CERTAIN AREAS
7 OF COLORADO SUFFER FROM A LACK OF PHYSICIANS AND OTHER HEALTH
8 CARE PROFESSIONALS TO SERVE THE MEDICAL NEEDS OF LOCAL RESIDENTS
9 AND THAT INCENTIVES ARE NEEDED TO ENCOURAGE PHYSICIANS AND
10 OTHER HEALTH CARE PROFESSIONALS TO PRACTICE IN SUCH AREAS. THE
11 GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT LIMITING THESE
12 INCENTIVES TO HEALTH CARE PROFESSIONALS WHO HAVE FINANCED THEIR
13 MEDICAL EDUCATION THROUGH STUDENT LOANS OFFERS A UNIQUE
14 INCENTIVE TO ENCOURAGE SUCH PROFESSIONALS TO PRACTICE IN HEALTH
15 CARE PROFESSIONAL SHORTAGE AREAS. IT IS THEREFORE THE INTENT OF
16 THE GENERAL ASSEMBLY TO PROVIDE THESE INCENTIVES THROUGH THE
17 ENACTMENT OF AN INCOME TAX CREDIT FOR PHYSICIANS AND OTHER
18 HEALTH CARE PROFESSIONALS WHO HAVE FINANCED THEIR MEDICAL
19 EDUCATION THROUGH STUDENT LOANS AND CHOOSE TO RESIDE AND
20 PRACTICE IN THESE AREAS.
21 (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
22 REQUIRES:
23 (a) "HEALTH CARE PROFESSIONAL" MEANS A PHYSICIAN, PHYSICIAN
24 ASSISTANT, OR NURSE WHO IS LICENSED OR CERTIFIED AS SUCH UNDER THE
25 LAWS OF THIS STATE.
26 (b) "HEALTH CARE PROFESSIONAL SHORTAGE AREA" MEANS A
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1 FEDERALLY DESIGNATED HEALTH PROFESSIONAL SHORTAGE AREA AS
2 DEFINED IN SECTION 254e OF THE FEDERAL "PUBLIC HEALTH SERVICE
3 ACT", 42 U.S.C. SEC. 201 ET SEQ., AS DESIGNATED BY THE SECRETARY OF
4 THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES.
5 (c) "STUDENT LOAN" MEANS A STUDENT OBLIGATION NOTE OR
6 OTHER DEBT OBLIGATION EVIDENCING A LOAN TO ANY PERSON FOR HIGHER
7 EDUCATION PURPOSES OR FOR THE PURPOSE OF CONSOLIDATING OR
8 REFINANCING A LOAN FOR HIGHER EDUCATION PURPOSES, WHICH IS EITHER
9 A GUARANTEED STUDENT LOAN, AN EDUCATIONAL LOAN, OR A LOAN
10 ELIGIBLE FOR CONSOLIDATION OR REFINANCING UNDER PART B OF TITLE
11 IV OF THE FEDERAL "HIGHER EDUCATION ACT OF 1965", 20 U.S.C. SEC.
12 1001 ET SEQ., AS AMENDED.
13 (3) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
14 1, 2001, BUT PRIOR TO JANUARY 1, 2006, THERE SHALL BE ALLOWED TO
15 EACH TAXPAYER AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
16 AN AMOUNT EQUAL TO THE TOTAL AMOUNT OF THE TAXPAYER'S ACTUAL
17 INCOME TAX LIABILITY FOR THE TAXABLE YEAR FOR WHICH THE CREDIT IS
18 CLAIMED; EXCEPT THAT IN NO EVENT SHALL THE AGGREGATE AMOUNT OF
19 THE CREDIT CLAIMED BY THE TAXPAYER PURSUANT TO THIS SECTION
20 EXCEED THE AMOUNT OF THE STUDENT LOAN REFERENCED IN PARAGRAPH
21 (d) OF SUBSECTION (4) OF THIS SECTION.
22 (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,
23 THE CREDIT CREATED BY THIS SECTION SHALL ONLY BE ALLOWED WHERE
24 THE TAXPAYER:
25 (a) IS A HEALTH CARE PROFESSIONAL;
26 (b) HAS RESIDED AND PRACTICED IN A HEALTH CARE
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1 PROFESSIONAL SHORTAGE AREA FOR A PERIOD OF NOT LESS THAN ONE
2 HUNDRED EIGHTY DAYS OF THE INCOME TAX YEAR;
3 (c) THE TAXPAYER HAS COMMITTED TO RESIDING AND PRACTICING
4 IN A HEALTH CARE PROFESSIONAL SHORTAGE AREA FOR AT LEAST THREE
5 YEARS PURSUANT TO CRITERIA ESTABLISHED BY THE DEPARTMENT OF
6 PUBLIC HEALTH AND ENVIRONMENT; AND
7 (d) THE TAXPAYER IS A BORROWER ON A STUDENT LOAN MADE TO
8 HIM OR HER TO FINANCE HIGHER EDUCATION OPPORTUNITIES RESULTING
9 IN A MEDICAL, PHYSICIAN ASSISTANT, OR NURSING DEGREE.
10 (5) THE CREDIT ALLOWED BY SUBSECTION (3) OF THIS SECTION
11 MAY BE CLAIMED BY A TAXPAYER FOR EACH INCOME TAX YEAR AT THE
12 END OF WHICH THE TAXPAYER IS, IN ADDITION TO SATISFYING THE OTHER
13 REQUIREMENTS OF THIS SECTION, ALSO CURRENT IN HIS OR HER PAYMENTS
14 ON THE STUDENT LOAN REFERENCED IN PARAGRAPH (d) OF SUBSECTION (4)
15 OF THIS SECTION; EXCEPT THAT IN NO EVENT SHALL A TAXPAYER BE
16 ALLOWED A CREDIT UNDER THIS SECTION FOR A PERIOD IN EXCESS OF FIVE
17 INCOME TAX YEARS. WHERE THE TAXPAYER MAKES PAYMENT IN FULL
18 UPON SAID LOAN EARLIER THAN SUCH FIVE YEARS, THE CREDIT SHALL NOT
19 BE ALLOWED FOR ANY INCOME TAX YEAR AFTER THE TAX YEAR IN WHICH
20 SAID LOAN HAS BEEN MARKED "PAID IN FULL" OR WORDS TO SIMILAR
21 EFFECT.
22 (6) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,
23 A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THE CREDIT CREATED BY
24 THIS SECTION WHERE THE TAXPAYER HAS PAID OFF IN FULL THE STUDENT
25 LOAN REFERENCED IN PARAGRAPH (d) OF SUBSECTION (4) OF THIS SECTION
26 BY MEANS OF ANY LOAN REPAYMENT PROGRAM.
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1 (7) TO QUALIFY FOR THE CREDIT PROVIDED BY THIS SECTION THE
2 TAXPAYER SHALL SUBMIT A CERTIFICATION FORM WITH EACH INCOME TAX
3 RETURN. SUCH FORM SHALL BE OBTAINED FROM THE DEPARTMENT OF
4 PUBLIC HEALTH AND ENVIRONMENT. THE DEPARTMENT OF PUBLIC HEALTH
5 AND ENVIRONMENT SHALL CERTIFY THAT THE TAXPAYER HAS SATISFIED
6 THE REQUIREMENTS FOR ALLOWANCE OF THE CREDIT AS SPECIFIED IN
7 SUBSECTION (3) OF THIS SECTION.
8 (8) ANY TAXPAYER WHO HAS CLAIMED THE CREDIT PROVIDED BY
9 THIS SECTION AND WHO MOVES OUT OF A HEALTH CARE PROFESSIONAL
10 SHORTAGE AREA DURING THE THREE-YEAR PERIOD THAT SUCH TAXPAYER
11 WAS COMMITTED TO RESIDE AND PRACTICE IN SUCH AREA SHALL REFUND
12 THE ENTIRE AMOUNT OF THE TOTAL CREDIT CLAIMED PURSUANT TO THIS
13 SECTION.
14 SECTION 2. Effective date. This act shall take effect at 12:01
15 a.m. on the day following the expiration of the ninety-day period after
16 final adjournment of the general assembly that is allowed for submitting
17 a referendum petition pursuant to article V, section 1 (3) of the state
18 constitution; except that, if a referendum petition is filed against this act
19 or an item, section, or part of this act within such period, then the act,
20 item, section, or part, if approved by the people, shall take effect on the
21 date of the official declaration of the vote thereon by proclamation of the
22 governor.