HB 1317 -- Income Tax:  Credit for Dentists for Medicaid
Assistance

Sponsor:  Backer

This bill authorizes an income tax credit for dentists who
provide qualified dental services for Medicaid recipients.

For each tax year a credit is claimed, the director of the
Department of Social Services is to enter into an agreement with
participating dentists specifying that at least $1,000 worth of
dental services will be provided to persons eligible for
Medicaid.  A participating dentist may claim a tax credit equal
to the lesser of 50% of the value of the Medicaid allowable
reimbursement or the difference between 80% of the usual and
customary reimbursement as determined by the most recent
American Dental Association fee survey of the west north central
states and the Medicaid allowable reimbursement for such
service.  The maximum tax credit for any one year cannot exceed
$50,000.  If the credit claimed exceeds the tax liability, the
difference is to be returned as a tax refund.

Persons falsely claiming a tax credit are guilty of a class A
misdemeanor.  The Department of Revenue is to administer and to
promulgate rules related to the tax credit provisions of this
bill.  Rules governing the dental services agreement are to be
promulgated by the Department of Social Services.

The bill will become effective January 1, 2001.