Sec. 232. Physician charity and uncompensated care deduction
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Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: In the case of a physician, there shall be allowed as a deduction for the taxable year an amount equal to the sum of— the amount such physician would have otherwise charged for qualified charity care provided by such physician during such taxable year, and the amount of any debt owed to such physician for physicians' services which becomes worthless during such taxable year.
For purposes of this section— The term physician has the meaning given to such term in section 1861(r) of the Social Security Act ( 42 U.S.C. 1395x(r) ). The term qualified charity care means physicians’ services provided on a volunteer or pro bono basis (not including any services for which an amount was charged but not paid). The term physicians' services has the meaning given such term in section 1861(q) of the Social Security Act ( 42 U.S.C. 1395x(q) ). The amount determined under subsection
(a)with respect to any services or debt— shall be reduced by any reimbursement received by the physician for such services or debt, and shall not exceed the economic index referred to in the fourth sentence of section 1842(b)(3) of the Social Security Act ( 42 U.S.C. 1395u(b)(3) ) applicable to the qualified charity care provided or the services provided with respect to which the debt relates. In the case of physicians’ services to which such economic index is not applicable, the Secretary, in consultation with the Secretary of Health and Human Services, shall use data on uncompensated care for purposes of the limitation under subparagraph (B), and may adjust such data so as to be an appropriate proxy, including (in the case of qualified charity care) a downward adjustment to eliminate bad debt data from uncompensated care data. The amount allowed as a deduction under subsection
(a)for any taxable year shall not exceed an amount equal to 10 percent of the gross income of the taxpayer for the taxable year derived from the taxpayer’s provision of physicians’ services. No deduction shall be allowed under section 166 or any other provision of this title for the amount of any bad debt taken into account under subsection (a)(2) (as reduced, if applicable, under subsection (c)). . The table of sections for part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 199A. Physician charity and uncompensated care. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
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