[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4641 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4641

 To amend the Internal Revenue Code of 1986 to increase the deduction 
under section 179 for the purchase of qualified health care information 
technology by medical care providers and to allow a credit against tax 
  for applicable telecommunications charges paid or incurred by such 
                               providers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 18, 2005

Mr. Gingrey (for himself, Mr. Norwood, Mr. Garrett of New Jersey, Mrs. 
  Capito, and Miss McMorris) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the deduction 
under section 179 for the purchase of qualified health care information 
technology by medical care providers and to allow a credit against tax 
  for applicable telecommunications charges paid or incurred by such 
                               providers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Assisting Doctors to Obtain 
Proficient and Transmissible Health Information Technology (ADOPT HIT) 
Act of 2005''.

SEC. 2. PURCHASE OF QUALIFIED HEALTH CARE INFORMATION TECHNOLOGY.

    (a) In General.--Section 179 of the Internal Revenue Code of 1986 
(relating to election to expense certain depreciable assets) is amended 
by adding at the end the following new subsection:
    ``(e) Health Care Information Technology.--
            ``(1) In general.--In the case of qualified health care 
        information technology purchased by a medical care provider and 
        placed in service during a taxable year--
                    ``(A) subsection (b)(1) shall be applied by 
                substituting `$250,000' for `$100,000',
                    ``(B) subsection (b)(2) shall be applied by 
                substituting `$600,000' for `$400,000', and
                    ``(C) subsection (b)(5)(A) shall be applied by 
                substituting `$250,000 and $600,000' for `$100,000 and 
                $400,000'.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Qualified health care information 
                technology.--The term `qualified health care 
                information technology' means section 179 property 
                which is used primarily for the electronic creation, 
                maintenance, and exchange of medical care information 
                to improve the quality or efficiency of medical care.
                    ``(B) Medical care provider.--The term `medical 
                care provider' means any person engaged in the trade or 
                business of providing medical care.
                    ``(C) Medical care.--The term `medical care' has 
                the meaning given such term by section 213(d).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2004.

SEC. 3. TELECOMMUNICATIONS CREDIT FOR QUALIFIED MEDICAL CARE PROVIDERS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45N. TELECOMMUNICATIONS CREDIT FOR QUALIFIED MEDICAL CARE 
              PROVIDERS.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
qualified medical care provider, the telecommunications credit 
determined under this section for a taxable year is an amount equal to 
50 percent of the applicable telecommunications charges paid or 
incurred by such provider during the taxable year.
    ``(b) Dollar Limitation.--In the case of a qualified medical care 
provider, the credit determined under subsection (a) for a taxable year 
shall not exceed $10,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Applicable telecommunications charges.--The term 
        `applicable telecommunications charges' means expenses paid or 
        incurred for the purpose of installing or maintaining a 
        communications network that supports interoperability of 
        electronic medical record systems.
            ``(2) Qualified medical care provider.--The term `qualified 
        medical care provider' means any person engaged in the trade or 
        business of providing medical care (as defined in section 
        213(d)) who has purchased qualified health care information 
        technology (as defined in section 179(e)).''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (25), by striking the period 
        at the end of paragraph (26) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(27) the telecommunications credit determined under 
        section 45N.''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45N. Telecommunications credit for qualified medical care 
                            providers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred after December 31, 2004.
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