Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 27, 2024

 

H. 5225

 

Introduced by Rep. Cobb-Hunter

 

S. Printed 03/27/24--H.

Read the first time March 06, 2024

 

________

 

The committee on House Ways and Means

To whom was referred a Bill (H. 5225) to amend the South Carolina Code of Laws by adding Section 12-6-1180 so as to allow an income tax deduction for each clinical rotation served by a physician, advanced, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

    Amend the bill, as and if amended, by striking all after the enacting words and inserting:

SECTION 1.  Section 12-6-3800(A), (B), and (C) of the S.C. Code is amended to read:

 

    (A) For the purposes of this section:

       (1) "Independent institution of higher learning" has the same meaning as provided in Section 59-113-50.

       (2) "Medical school-required clinical rotation", "physician assistant program-required clinical rotation", or "advanced practice nursing program-required clinical rotation" means a clinical rotation for a public teaching institution or independent institution of higher learning that:

           (a) is established for a student who is enrolled in a South Carolina public teaching institution or an independent institution of higher learning, including:

               (i) medical school;

               (ii) a physician assistant program;  and

               (iii) an advanced practice nursing program;  and

           (b) includes a minimum of one hundred sixty hours of instruction in one of the following clinical settings:

               (i) family medicine;

               (ii) internal medicine;

               (iii) pediatrics;

               (iv) obstetrics and gynecology;

               (v) emergency medicine;

               (vi) psychiatry;  or

               (vii) general surgery under the guidance of a physician, advanced practice registered nurse, or physician assistant; or

               (viii) specialty care including, but not limited to, dermatology, hematology, neurology, and oncology.

       (3) "Preceptor" means a physician, advanced practice nurse practitioner, or physician assistant who provides supervision and instruction during student clinical training experiences, is otherwise not compensated for doing so, and provides a minimum of two required clinical rotations within a calendar year.

    (B)(1) There is allowed an income tax credit for each clinical rotation a physician serves as the preceptor for a medical school-required clinical rotation, advanced practice nursing program-required clinical rotation, and physician assistant program-required clinical rotation.      (2) If at least fifty percent of If the physician's practice consists of a combined total ofincludes Medicaid insured ,or Medicare insured, and self-pay patients, then the credit is equal to one thousand dollars for each rotation served, not to exceed four thousand dollars a year.  The provider must be a Medicaid participating provider and have a minimum of at least one hundred Medicaid and Medicare patients combined or be a free clinic.

       (3) If at least thirty percent of the physician's practice consists of a combined total of Medicaid insured, Medicare insured, and self-pay patients, then the credit is equal to seven hundred fifty dollars for each rotation served, not to exceed three thousand dollars a year.

       (4) If less than thirty percent of the physician's practice consists of a combined total of Medicaid insured, Medicare insured, and self-pay patients, then the credit is disallowed.

       (5) The credits allowed by this subsection are not cumulative and may not be combined.

    (C)(1) There is allowed an income tax credit for each clinical rotation an advanced practice registered nurse or physician assistant serves as the preceptor for an advanced practice nursing or physician assistant-required clinical rotation.  The credit is equal to one thousand dollars for each rotation served, not to exceed four thousand dollars a year. The provider must be a Medicaid participating provider and have a minimum of at least one hundred Medicaid and Medicare patients combined or be a free clinic.

       (2) If at least fifty percent of the advanced practice registered nurse's or physician assistant's practice consists of a combined total of Medicaid insured, Medicare insured, and self-pay patients, then the credit is equal to seven hundred fifty dollars for each rotation served, not to exceed three thousand dollars a year.

       (3) If at least thirty percent of the advanced practice registered nurse's or physician assistant's practice consists of a combined total of Medicaid insured, Medicare insured, and self-pay patients, then the credit is equal to five hundred dollars for each rotation served, not to exceed two thousand dollars a year.

       (4) If less than thirty percent of the advance practice registered nurse's or physician assistant's practice consists of a combined total of Medicaid insured, Medicare insured, and self-pay patients, then the credit is disallowed.

       (5) The credits allowed by this subsection are not cumulative and may not be combined.

 

SECTION 2.  Section 4 of Act 45 of 2019 is amended to read:

 

Section 4.   This act takes effect upon approval by the Governor and shall apply to tax years 2020 through 20252029. Section 12-6-3800 and Section 12-6-1140( )12-6-1140(14) are repealed January 1, 20262030.

 

SECTION 3.  This act takes effect upon approval by the Governor and applies to tax years beginning after 2024.

 

Renumber sections to conform.

Amend title to conform.

 

GILDA COBB-HUNTER for Committee.

 

________

 

 

 

 

 

 

 

 

 

A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 12-6-1180 SO AS TO ALLOW AN INCOME TAX DEDUCTION FOR EACH CLINICAL ROTATION SERVED BY A PHYSICIAN, ADVANCED PRACTICE NURSE, OR PHYSICIAN ASSISTANT AS A PRECEPTOR FOR CERTAIN PROGRAMS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.A.  Article 9, Chapter 6, Title 12 of the S.C. Code is amended by adding:

 

    Section 12-6-1180. (A) For the purposes of this section:

       (1) "Independent institution of higher learning" has the same meaning as provided in Section 59-113-50.

       (2) "Medical school-required clinical rotation", "physician assistant program-required clinical rotation", or "advanced practice nursing program-required clinical rotation" means a clinical rotation for a public teaching institution or independent institution of higher learning that:

           (a) is established for a student who is enrolled in a South Carolina public teaching institution or an independent institution of higher learning, including:

               (i) medical school;

               (ii) a physician assistant program; and

               (iii) an advanced practice nursing program; and

           (b) includes a minimum of one hundred sixty hours of instruction in one of the following clinical settings:

               (i) family medicine;

               (ii) internal medicine;

               (iii) pediatrics;

               (iv) obstetrics and gynecology;

               (v) emergency medicine;

               (vi) psychiatry;

               (vii) general surgery under the guidance of a physician, advanced practice registered nurse, or physician assistant; or

               (viii) specialty care including, but not limited to, dermatology, hematology, neurology, and oncology.

       (3) "Preceptor" means a physician, advanced practice nurse practitioner, or physician assistant who provides supervision and instruction during student clinical training experiences, is otherwise not compensated for doing so, and provides a minimum of two required clinical rotations within a calendar year.

    (B)(1) There is allowed an income tax deduction for each clinical rotation a physician serves as the preceptor for a medical school-required clinical rotation, advanced practice nursing program-required clinical rotation, and physician assistant program-required clinical rotation.

       (2)   If the physician's or nurse practitioner's practice includes Medicaid-insured or Medicare-insured, then the deduction is equal to one thousand dollars for each rotation served, not to exceed four thousand dollars a year.  The provider must be a Medicaid participating provider and have a minimum of at least one hundred Medicaid and Medicare patients combined or be a free clinic.

    (C) There is allowed the same income tax deduction for each clinical rotation an advanced practice registered nurse or physician assistant serves as the preceptor for an advanced practice nursing or physician assistant-required clinical rotation.

    (D)  A deduction earned pursuant to this section is considered earned in the tax year in which the rotation is served. Fifty percent of the funds earned may be claimed in the tax year in which it is earned, and the remaining fifty percent may be claimed in the next year.  However, the funds claimed in a tax year may not exceed fifty percent of the taxpayer's remaining tax liability after all other deductions have been applied.

    (E) By March thirty first of each year that the tax deduction is allowed, the department shall report the number of taxpayers claiming the deduction allowed by this section, the total amount of deductions allowed, and the number of hours that the recipient taxpayers served as preceptors to the Senate Finance Committee, the House of Representatives Ways and Means Committee, and the Governor. The department must disaggregate taxpayers between physicians, advanced practice registered nurses, and physician assistants.

    (F)   The department may consult with a designated administrative entity to determine eligibility and may require any proof that it determines necessary to efficiently administer the deduction allowed by this section. The department may promulgate regulations necessary to implement the provisions of this section.

 

B. A taxpayer may not claim the deduction allowed by Section 12-6-1180 and claim the credit and deduction allowed by Section 12-6-3800 in the same tax year.

 

SECTION 2.  This act takes effect upon approval by the Governor and applies to tax years beginning after 2024 and ending before 2030, at which time, Section 12-6-1180 is repealed.

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