Current through Register Vol. 50, No. 9, September 20, 2024
A. General Description
1. The small town health professionals credit
provides an individual income tax credit for certified medical primary care
health professionals including:
a. physicians
possessing an unrestricted license by the state of Louisiana to practice
medicine;
b. dentists licensed by
the state of Louisiana to practice dentistry;
c. primary care nurse practitioners licensed
by the state of Louisiana;
d.
primary care physician assistants licensed by the state of Louisiana;
or
e. optometrists licensed by the
state of Louisiana.
2.
To be eligible for the credit, a certified medical primary care health
professional must:
a. establish and maintain
the primary office of their practice which is, as determined by the Department
of Health through annual application:
i. for
medical physicians, nurse practitioners, physician assistants, and
optometrists, an area that is a primary care high needs geographic Health
Professional Shortage Area (HPSA), or for dentists, a Dental Health
Professional Shortage Area (DHPSA), as designated by the U.S. Department of
Health and Human Services Health Resources and Services Administrations Bureau
of Health Workforce, Division of Policy and Shortage Designation (DPSD);
and
ii. a rural area as defined in
rules promulgated by the Department of Health (See LAC 48:I.10307 for parishes
that meet the definition of rural.);
iii. accept Medicaid and Medicare payments
for services rendered;
b. to be eligible for the credit, the
certified medical primary care health professional must practice under the
conditions set forth above for a period of not less than three tax years. In
addition, the health professional must submit an annual application and receive
certification from the Department of Health for each calendar year in order to
claim the credit for the corresponding tax year. Under no circumstances shall a
taxpayer receive the credit for more than one relocation or more than five tax
years.
B.
Definitions.
Certified Medical Primary Care Health
Professional-a physician possessing an unrestricted license by the
State of Louisiana to practice medicine, a dentist licensed by the State of
Louisiana to practice dentistry, a primary care nurse practitioner licensed by
the State of Louisiana, a primary care physician assistant licensed by the
state of Louisiana, or an optometrist licensed by the state of
Louisiana.
Department of Health-the Louisiana
Department of Health
Department of Revenue-the Louisiana
Department of Revenue
Health Professional Shortage Area/Dental Health
Professional Shortage Area-an area so designated by the U.S.
Department of Health and Human Services Health Resources and Services
Administrations Bureau of Health Workforce, Division of Policy and Shortage
Designation (DPSD) as of December 31 of the year preceding the applicable
application period.
C.
Application. Beginning January 1, 2018, taxpayers seeking to utilize the small
town health professionals tax credit for taxable periods beginning on or after
January 1, 2018 must annually apply for and be deemed eligible for the credit
by the Department of Health. This annual application requirement applies to all
taxpayers, including those who have previously claimed the credit within the
last four years. The application period for calendar year 2018 shall begin on
October 1, 2018 and conclude on November 30, 2018. For all application periods
thereafter, the application period shall begin on September 1 of each calendar
year and conclude on October 31 of the same calendar year. Only applications
concerning eligibility for the calendar year during which the applications are
received may be submitted and considered for purposes of the credit.
Applications may not be submitted and will not be accepted prior or subsequent
to the application period. Taxpayers must submit a Louisiana small town health
professional credit application to the Department of Health for review. Each
application must contain an applicants home mailing address, date of qualifying
relocation and the last four digits of the applicants Social Security number,
as well as all other required information. A taxpayer is deemed eligible upon
satisfactorily demonstrating that it has met the requirements of Subsection A
of this Section for the calendar year.
D. Certification
1. No later than December 31 of each calendar
year, the Department of Health shall issue a tax certificate letter to the
taxpayer notifying the taxpayer as to whether the application has been approved
or denied. If approved, the tax certificate letter shall notify the taxpayer of
the maximum amount eligible, the taxable period against which the nonrefundable
credit may be used, and the time period during which the credit must be
claimed. If denied, the letter shall so provide the reasons for denial. No
later than January 31 of the succeeding calendar year, the Department of Health
shall provide to the Department of Revenue a list of all approved applicants in
a machine-sensible format, including but not limited to an Excel
spreadsheet.
2. Pursuant to
R.S.
47:297(H), an approved
application shall authorize a taxpayer for eligibility for a nonrefundable
credit with no carryforward equal to the lesser of the tax due or $3,600,
unless subject to proration, for the tax period deemed eligible. In the event
the taxpayer is subject to proration due to the credit cap provisions, the
taxpayer shall only be eligible for a credit equal to the pro rata amount for
the tax period deemed eligible.
3.
For each calendar year, beginning with calendar year 2018, the Department of
Health shall not certify credits in excess of $1,500,000. For purposes of
administering the credit cap, the Department of Health shall count each
approved application at a value of $3,600 or, if subject to proration, the pro
rata value. Applications shall be approved as eligible for the credit by the
Department of Health on a first-come, first-served basis as determined by the
postmarked or received date of a completed Louisiana small town health
professional credit application. An application shall not be considered
received until all information requested by the Department of Health has been
submitted.
4. All applications
received on the same business day shall be treated as received at the same
time, and if the aggregate amount of requests received on the same business day
exceeds the total amount of available tax credits, tax credits shall be
approved on a pro rata basis. In such instance, applicants limited by the
credit cap provisions shall be eligible for only the pro rata share of their
credit.
5. The tax credit shall be
earned upon approval from the Department of Health. However, in the event it is
determined by the Department of Health that the taxpayer has not maintained the
requirements of Subsection A of this Section, any amounts certified by the
Department of Health are subject to disallowance by the Department of Revenue
and any amounts allowed to offset tax, penalties or interest are subject to
recapture by the Department of Revenue.
E. Credits
1. Credits certified by the Department of
Health may only be used to offset tax for the taxable period deemed eligible.
Any amount certified must be claimed on a return filed within the calendar year
subsequent to the calendar year of application. Any credits claimed against a
taxable period other than the period authorized or filed on a return before or
after the calendar year which is subsequent to the calendar year of application
will be disallowed.
a. Example. Application
submitted and approved by the Department of Health in calendar year 2018 for
credit eligibility for tax period 2018. The approved tax year 2018 credit must
be claimed on a 2018 return filed during calendar year
2019.
2. For each
calendar year, beginning with calendar year 2018, the Department of Revenue
shall not grant credits in excess of $1,500,000. For purposes of administering
the credit cap, the Department of Revenue shall count each approved credit at
the lesser of the tax due or other amount deemed eligible according to the
certification issued by the Department of Health. Credits shall be granted by
the Department of Revenue on a first-come, first-served basis as determined by
the received date of a completed individual income tax return. A return shall
not be considered received until all information requested by the Department of
Revenue has been submitted.
3. All
returns received on the same business day shall be treated as received at the
same time, and if the aggregate amount of claims received on the same business
day exceeds the total amount of available tax credits, tax credits shall be
approved on a pro rata basis. In such instance, taxpayers limited by the credit
cap provisions shall be eligible for only the pro rata share of their
credit.
4. The provisions of this
Subsection are in addition to and shall not limit the authority of the
Secretary of the Department of Revenue to assess or to collect under any other
provision of law.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
47:297(H) and
R.S.
47:1511.
