NY State Senate Bill 2011-S581

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to investigations and government operations
Jan 05, 2011	referred to investigations and government operations

co-Sponsors

2011-S581 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in 2009-2010 Legislative Session:: S1894

2011-S581 (ACTIVE) - Summary

Enacts the medical malpractice insurance premium credit act; provides a tax credit for a percentage of medical malpractice premiums paid by such taxpayer; defines relevant terms.

2011-S581 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S581

TITLE OF BILL:
An act
to amend the tax law, in relation to enacting the medical malpractice
insurance premiums credit act

PURPOSE OR GENERAL IDEA OF BILL:
Enacts the medical malpractice insurance premium credit act.

SUMMARY OF SPECIFIC PROVISIONS:
Amends section 210 of the tax law to add a new subdivision 25-b and
section 606 of the tax law to add a new subsection (qq) providing a
tax credit for medical malpractice insurance premiums equal to
twenty-five percent of the amount by which annual qualified premiums
exceed ten percent of the taxpayer's qualified income, up to
twenty-five thousand dollars. Qualified premiums are defined to
include all premiums regulated by the New York state department of
insurance with the exception of premiums paid to the New York medical
malpractice insurance plan.
Qualified income is defined to include all net receipts the taxpayer
derives from activities covered by the malpractice policy for which
the qualified premiums are paid.

JUSTIFICATION:
Rising malpractice insurance premiums remain a source of deep concern

for physicians across the country, with doctors in high-risk
specialties, such as neurosurgery and obstetrics paying the highest
premiums.
Medical malpractice insurance premiums also vary widely from one part
of the state to another with doctors practicing on Long Island and in
the outer boroughs of New York City paying the highest insurance
rates, regardless of their field of specialty. A recent examination
of median physician income data and average malpractice insurance
premiums for locations and specialties around the state found that
doctors in low risk specialties paying less than a percent of their
income for the insurance coverage in the least expensive upstate
cities and doctors in high-risk specialties paying more than half of
their median income on Long Island.

Rising medical malpractice rates have driven some doctors to early
retirement, while others have chosen to reduce costs by relocating to
less expensive insurance markets or curtailing the riskiest elements
of their practice, such as delivering babies.

The Malpractice Insurance Premium Credit is targeted specifically to
those physicians who pay the highest malpractice insurance rates
relative to their annual income. The credit would be available to New
York physicians in any region or specialty whose qualified medical
malpractice premiums exceed ten percent of their annual income. For
physicians who cross that threshold, the credit would be worth
twenty-five percent of the amount by which their annual premium
exceeds ten percent of income, up to a maximum of $25,000. The
measure would take effect in
time for the 2004 tax year and sunset in 2014. The tax credit will be
available to almost any New York physician who pays his or her own


medical malpractice insurance premium. The credit will not apply to
those physicians who are insured by their employers.

The tax credit will also not be available to physicians who pay higher
medical malpractice insurance premiums due to their own negligence or
prior history. For this reason, qualified premiums under Klein's plan
will not include premiums paid to the New York Medical Malpractice
Insurance Plan, considered the insurer of last resort for New York's
most at-risk doctors.

LEGISLATIVE HISTORY:
A.11754 of 2004 - Referred to Ways & Means
S.2757 of 2006 - Referred to Investigations & Government Operations
S.2217 of 2008 - Referred to Investigations & Government Operations
S.1894 of 2009 - Referred to Investigations & Government Operations

FISCAL IMPLICATIONS:
A small percentage of physicians statewide would quality for this tax
credit.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2011 through December 31, 2020.

2011-S581 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   581

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  KLEIN, STEWART-COUSINS, VALESKY -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Investigations and Government Operations

AN  ACT  to amend the tax law, in relation to enacting the medical malp-
  ractice insurance premiums credit act

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short  title. This act shall be known and may be cited as
the "medical malpractice insurance premiums credit act".
  S 2. Section 210 of the tax law is amended by adding a new subdivision
25-b to read as follows:
  25-B. CREDIT FOR MEDICAL MALPRACTICE INSURANCE PREMIUMS. (A)  AS  USED
IN  THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEAN-
INGS:
  (1) "MEDICAL MALPRACTICE  INSURANCE"  MEANS  INSURANCE  AGAINST  LEGAL
LIABILITY  OF  THE INSURED, AND AGAINST LOSS, DAMAGE OR EXPENSE INCIDENT
TO A CLAIM OF SUCH LIABILITY ARISING OUT OF THE DEATH OR INJURY  OF  ANY
PERSON  DUE  TO MEDICAL, DENTAL, PODIATRIC, CERTIFIED NURSE-MIDWIFERY OR
HOSPITAL MALPRACTICE BY ANY  LICENSED  PHYSICIAN,  DENTIST,  PODIATRIST,
CERTIFIED  NURSE-MIDWIFE,  CERTIFIED  REGISTERED  NURSE  ANESTHETIST  OR
HOSPITAL.
  (2) "QUALIFIED PREMIUMS"  SHALL  INCLUDE  ALL  PREMIUMS  PAID  BY  THE
TAXPAYER  DURING  THE CURRENT TAX YEAR ON ALL MEDICAL MALPRACTICE INSUR-
ANCE POLICIES WHOSE PREMIUMS ARE REGULATED AND ESTABLISHED BY THE INSUR-
ANCE DEPARTMENT WITH THE EXCEPTION OF PREMIUMS PAID FOR  EXCESS  MEDICAL
MALPRACTICE  INSURANCE COVERAGE PROVIDED PURSUANT TO CHAPTER TWO HUNDRED
SIXTY-SIX OF THE LAWS OF NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED.
  (3) "QUALIFIED INCOME" SHALL INCLUDE ALL  NET  RECEIPTS  THE  TAXPAYER
DERIVES  FROM ACTIVITIES COVERED BY THE MALPRACTICE POLICY FOR WHICH THE
QUALIFIED PREMIUMS ARE PAID.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD04441-01-1

S. 581                              2

  (B) A TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE  TAX  IMPOSED  BY
THIS  ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF THE AMOUNT BY WHICH ANNUAL
QUALIFIED PREMIUMS EXCEED TEN PERCENT OF THE TAXPAYER'S QUALIFIED INCOME
FOR THE CURRENT YEAR, NOT TO EXCEED THE LESSER OF THE TAXPAYER'S CURRENT
YEAR  TAX LIABILITY OR TWENTY-FIVE THOUSAND DOLLARS. THE CREDIT SHALL BE
CLAIMED AFTER THE ALLOWANCE OF ALL OTHER CREDITS PROVIDED BY THIS  CHAP-
TER.
  (C)  THE  CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY YEAR SHALL NOT
REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE  AMOUNTS
PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION.
IF,  HOWEVER,  THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY  AMOUNT  OF  CREDIT
NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
YEAR  OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
OR YEARS.
  (D) FOR THE PURPOSES OF THIS SUBDIVISION  A  TAXPAYER  MAY  INCLUDE  A
PARTNERSHIP,  A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER S
OF CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY  OTHER
BUSINESS  ENTITY  THROUGH  WHICH INCOME FLOWS AS A DISTRIBUTIVE SHARE TO
ITS OWNERS. A CREDIT RECEIVED UNDER THIS SUBDIVISION BY  A  PARTNERSHIP,
S-CORPORATION,  OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED AMONG
THE PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP,  S-CORPORA-
TION,  OR  OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS AS THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxii) to read as
follows:

(XXXII) MEDICAL MALPRACTICE          QUALIFIED PREMIUMS UNDER
INSURANCE PREMIUMS CREDIT            SUBDIVISION TWENTY-FIVE-B
UNDER SUBSECTION (SS)                OF SECTION TWO HUNDRED TEN
  S 4. Section 606 of the tax law is amended by adding a new  subsection
(ss) to read as follows:
  (SS) MEDICAL MALPRACTICE INSURANCE PREMIUMS TAX CREDIT. (1) AS USED IN
THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "MEDICAL  MALPRACTICE  INSURANCE"  MEANS  INSURANCE AGAINST LEGAL
LIABILITY OF THE INSURED, AND AGAINST LOSS, DAMAGE OR  EXPENSE  INCIDENT
TO  A  CLAIM OF SUCH LIABILITY ARISING OUT OF THE DEATH OR INJURY OF ANY
PERSON DUE TO MEDICAL, DENTAL, PODIATRIC, CERTIFIED  NURSE-MIDWIFERY  OR
HOSPITAL  MALPRACTICE  BY  ANY  LICENSED PHYSICIAN, DENTIST, PODIATRIST,
CERTIFIED  NURSE-MIDWIFE,  CERTIFIED  REGISTERED  NURSE  ANESTHETIST  OR
HOSPITAL.
  (B)  "QUALIFIED  PREMIUMS"  SHALL  INCLUDE  ALL  PREMIUMS  PAID BY THE
TAXPAYER DURING THE CURRENT TAX YEAR ON ALL MEDICAL  MALPRACTICE  INSUR-
ANCE POLICIES WHOSE PREMIUMS ARE REGULATED AND ESTABLISHED BY THE INSUR-
ANCE  DEPARTMENT  WITH THE EXCEPTION OF PREMIUMS PAID FOR EXCESS MEDICAL
MALPRACTICE INSURANCE COVERAGE PROVIDED PURSUANT TO CHAPTER TWO  HUNDRED
SIXTY-SIX OF THE LAWS OF NINETEEN HUNDRED EIGHTY-SIX, AS AMENDED.
  (C)  "QUALIFIED  INCOME"  SHALL  INCLUDE ALL NET RECEIPTS THE TAXPAYER
DERIVES FROM ACTIVITIES COVERED BY THE MALPRACTICE POLICY FOR WHICH  THE
QUALIFIED PREMIUMS ARE PAID.
  (2)  A  TAXPAYER  SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE EQUAL TO TWENTY-FIVE PERCENT OF THE AMOUNT BY WHICH  ANNUAL
QUALIFIED PREMIUMS EXCEED TEN PERCENT OF THE TAXPAYER'S QUALIFIED INCOME
FOR THE CURRENT YEAR, NOT TO EXCEED THE LESSER OF THE TAXPAYER'S CURRENT
YEAR  TAX LIABILITY OR TWENTY-FIVE THOUSAND DOLLARS. THE CREDIT SHALL BE

S. 581                              3

CLAIMED AFTER THE ALLOWANCE OF ALL OTHER CREDITS PROVIDED BY THIS  CHAP-
TER.
  (3)  ANY  AMOUNT  OF  CREDIT  NOT  DEDUCTIBLE IN A TAXABLE YEAR MAY BE
CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  (4) FOR THE PURPOSES OF THIS SUBSECTION A TAXPAYER MAY INCLUDE A PART-
NERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER  S  OF
CHAPTER  ONE  OF  SUBTITLE  A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A  DISTRIBUTIVE  SHARE  TO
ITS  OWNERS.  A  CREDIT RECEIVED UNDER THIS SUBSECTION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED  AMONG
THE  PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS  AS  THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  S 5. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2011 through December 31, 2020.

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Senate Bill S581

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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co-Sponsors

2011-S581 (ACTIVE) - Details

2011-S581 (ACTIVE) - Summary

2011-S581 (ACTIVE) - Sponsor Memo

2011-S581 (ACTIVE) - Bill Text download pdf

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Sponsored By

Jeffrey D. Klein

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Actions

co-Sponsors

Andrea Stewart-Cousins

David J. Valesky

2011-S581 (ACTIVE) - Details

2011-S581 (ACTIVE) - Summary

2011-S581 (ACTIVE) - Sponsor Memo

2011-S581 (ACTIVE) - Bill Text download pdf

Comments