97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1423

 

Introduced , by Rep. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/221 new

    Amends the Illinois Income Tax Act. Creates a credit for licensed hospitals in an amount equal to the lesser of the cost of charity care provided by the hospital during the tax year or the amount of real property taxes paid during the tax year on hospital property. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1423LRB097 09266 HLH 49401 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 221 as follows:
 
6    (35 ILCS 5/221 new)
7    Sec. 221. Hospital charity care credit. For tax years
8beginning on or after January 1, 2011 and ending on or before
9December 31, 2015, a taxpayer that is a hospital licensed under
10the Hospital Licensing Act is entitled to a credit against the
11taxes imposed under subsections (a) and (b) of Section 201 of
12this Act in an amount equal to the lesser of the cost of
13charity care provided by the hospital during the tax year or
14the amount of real property taxes paid during the tax year on
15real property used for hospital purposes during the prior tax
16year. If the taxpayer is a partnership or Subchapter S
17corporation, the credit is allowed to the partners or
18shareholders in accordance with the determination of income and
19distributive share of income under Sections 702 and 704 and
20Subchapter S of the Internal Revenue Code. A transfer of this
21credit may be made by the taxpayer earning the credit to
22another taxpayer within one year after the credit is earned in
23accordance with rules adopted by the Department. The Department

 

 

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1must prescribe rules to enforce and administer provisions of
2this Section. If the amount of the credit exceeds the tax
3liability for the year, at the election of the taxpayer, the
4excess credit may be refunded or the excess may be carried
5forward and applied to the tax liability of the 5 taxable years
6following the excess credit year. The credit shall be applied
7to the earliest year for which there is a tax liability. If
8there are credits from more than one tax year that are
9available to offset a liability, the earlier credit shall be
10applied first.
11    When used in this Section, where not otherwise distinctly
12expressed or manifestly incompatible with the intent thereof:
13    "Charity care" means care provided by a health care
14facility for which the provider does not receive and does not
15expect to receive payment from the patient or a third-party
16payer (as defined in Section 10 of the Community Benefits Act).
17In documenting the costs incurred in providing charity care, a
18health care facility must document the cost of charity care
19services provided. A hospital shall document the cost of
20providing charity care services by multiplying the cost to
21charge ratio derived from the facility's Medicare cost report
22(CMS 2552-96 Worksheet C, Part 1,) by the amount of foregone
23revenue attributable to charity care services provided
24consistent with Section 20(a)(3) of the Community Benefits Act.
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.