BILL REQ. #:  S-2052.1 

READ FIRST TIME 02/21/07.   

     AN ACT Relating to improving the quality of health care through the use of health information technologies; adding a new section to chapter 82.04 RCW; providing an effective date; and providing an expiration date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.04 RCW to read as follows:
     (1) Subject to the limits in this section, an eligible person is authorized a credit against the tax due under this chapter for the acquisition of health information technologies certified as eligible for credit by the health care authority as provided in RCW 41.05.021.
     (2) The credit allowed under this section:
     (a) Is limited to fifty percent of the amount expended to acquire computer hardware, software, labor, or services necessary for the development, enhancement, or installation of certified health information technologies. Expenditures may include those amounts for leased equipment and software.
     (b) Is subject to a lifetime maximum of ten thousand dollars for each eligible person.
     (c) Must be claimed in the calendar year in which the expenditure occurs by the due date of the last tax return for the calendar year in which the expenditure occurs and may not exceed the amount of tax imposed under this chapter.
     (d) In no case may a credit earned during one calendar year be carried over to be credited against taxes incurred in a subsequent calendar year. No refunds may be granted for credits under this section.
     (3) The credit allowed under this section shall not be claimed for expenditures that occur before the effective date of this section.
     (4) No application is necessary for the tax credit. An eligible person claiming this credit must keep records necessary for the department to verify eligibility under this section. This includes, but is not limited to, a personal attestation or documentation substantiating that the health information technologies acquired by the person are certified by a state, regional, or national commission for health information technology, the American health information committee, the United States department of health and human services, related to: (a) Interoperability; (b) security; and (c) the protection of confidentiality.
     (5) If at any time the department finds that a person is not eligible for tax credit under this section, the amount of taxes for which a credit has been used shall be immediately due. The department shall assess interest, but not penalties, on the credited taxes for which the person is not eligible. The interest shall be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, shall be assessed retroactively to the date the tax credit was taken, and shall accrue until the taxes for which a credit has been used are repaid.
     (6) For the purposes of this section:
     (a) "Eligible person" means:
     (i) A physician licensed under chapter 18.22, 18.36A, 18.57, or 18.71 RCW, who is registered as a sole proprietor;
     (ii) Any entity consisting of at least one but not more than five physicians licensed under chapter 18.22, 18.36A, 18.57, or 18.71 RCW, including physicians who are employees, officers, or owners of such entity;
     (iii) An advanced registered nurse practitioner licensed under chapter 18.79 RCW who is a sole proprietor;
     (iv) Any entity consisting of at least two but not more than five advanced registered nurse practitioners licensed under chapter 18.79 RCW, including advanced registered nurse practitioners who are employees, officers, or owners of such entity; or
     (v) Any entity consisting of a combination of physicians licensed under chapter 18.22, 18.57, or 18.71 RCW and advanced registered nurse practitioners licensed under chapter 18.79 RCW not to exceed five, including physicians and advanced registered nurse practitioners who are employees, officers, or owners of such entity.
     (b) "Health information technologies" has the meaning provided in RCW 41.05.021.
     (7) This section expires December 31, 2013.

NEW SECTION.  Sec. 2   This act takes effect January 1, 2008.