Current through Register Vol. XLI, No. 38, September 20, 2024
There are two classifications of eligible taxpayers who may
use the Credit.
7.1. Eligible
taxpayers, other than payors described in subsection 7.2 of this section, who
directly pay medical malpractice insurance premiums and who also pay the Health
Care Provider Tax may apply the Credit against the eligible taxpayer's Health
Care Provider Tax liability determined under W. Va. Code §
11-27-16.
The Credit shall be determined after application of all other allowable credits
and exemptions.
7.2. Partners,
members or shareholders of partnerships, limited liability companies, or
corporations who directly pay medical malpractice insurance premiums for or on
behalf of those organizations may apply the Credit against the eligible
taxpayer's Health Care Provider Tax liability determined under W. Va. Code
§
11-27-16
if the following requirements are satisfied:
7.2.1. The medical liability insurance
premiums shall be paid by a payor, as defined in this section, and the payments
shall be made to insure against medical liabilities arising out of or resulting
from physicians' services provided by a physician while practicing in service
to or under the organizational identity of an eligible taxpayer organization or
as an employee of the eligible taxpayer organization. The insurance shall cover
the medical liability of:
7.2.1.a. the
eligible taxpayer organization;
7.2.1.b. one or more physicians practicing in
service to or under the organizational identity of the eligible taxpayer
organization or as an employee of the eligible taxpayer organization;
or
7.2.1.c. any combination
thereof.
7.2.2. For
purposes of this section:
7.2.2.a. The term
"payor" means a natural person who is a partner, member, shareholder or owner,
in whole or in part, of an eligible taxpayer organization and who pays medical
liability insurance premiums for or on behalf of the eligible taxpayer
organization.
7.2.3. The
annual Credit allowable shall be applied to reduce the tax liability directly
payable under W. Va. Code §
11-27-16
by the payor, as defined in this section, but determined after application of
all other allowable credits and exemptions.
7.2.4. After application of the Credit as
provided in subdivision 7.2.3 of this subsection, any remaining annual credit
shall then be applied to reduce the tax liability directly payable under W. Va.
Code §
11-27-16
by the eligible taxpayer organization but determined after application of all
other allowable credits and exemptions.
7.2.5. Where a payor pays medical liability
insurance premiums for and provides services to or under the organizational
identity of two or more eligible taxpayer organizations or as an employee of
two or more eligible taxpayer organizations, the tax credit shall be allocated
among the eligible taxpayer organizations in proportion to the medical
liability insurance premiums paid directly by the payor during the taxable year
to cover physicians' services during such year for, or on behalf of, each
eligible taxpayer organization.
7.2.5.a. In
no event may the total credit claimed by all eligible taxpayers and eligible
taxpayer organizations exceed the credit which would be allowable if the payor
had paid all the medical liability insurance premiums for or on behalf of one
eligible taxpayer organization, and if all physician's services had been
performed for, or under the organizational identity of, or by employees of, one
eligible taxpayer organization.
