H-4407.3          _______________________________________________

                                  HOUSE BILL 2895

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Hymes, Quall, L. Thomas, Sheldon, Dyer, Basich, Campbell and Smith

Read first time 01/24/96.  Referred to Committee on Finance.

Allowing tax credits for losses incurred by providing individual health care insurance policies, individual health care service contracts, or health maintenance agreements.

     AN ACT Relating to tax credits for health care insurance; and adding a new section to chapter 48.14 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 48.14 RCW to read as follows:

     (1) In computing the taxes imposed under RCW 48.14.020 and 48.14.0201, a taxpayer may obtain a credit for losses incurred by the taxpayer in the provision of individual health care insurance policies, individual health care service contracts, or individual health maintenance agreements against the company's total premium tax obligation.

     (2) The maximum credit that a taxpayer may claim under this section is an amount equal to the total of claim amounts for individual health care insurance policies, individual health care service contracts, or individual health maintenance agreements that are greater than ninety-five percent of premiums collected from the individual health care insurance policies, individual health care service contracts, or individual health maintenance agreements.

     (3) Credit under this section is available only to taxpayers with at least five percent of its gross proceeds coming from individual health care insurance policies, individual health care service contracts, or individual health maintenance agreements.

     (4) For the purposes of this section, "taxpayer" means a disability insurer, health care service contractor, or health maintenance organization.

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