W. Va. Code R. § 110-13P-7

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-13P-7 - Computation and Application of Credit

There are two classifications of eligible taxpayers who may use the Credit.

7.1. Eligible taxpayers, other than payors described in subsection 7.2 of this section, who directly pay medical malpractice insurance premiums and who also pay the Health Care Provider Tax may apply the Credit against the eligible taxpayer's Health Care Provider Tax liability determined under W. Va. Code § 11-27-16. The Credit shall be determined after application of all other allowable credits and exemptions.

7.2. Partners, members or shareholders of partnerships, limited liability companies, or corporations who directly pay medical malpractice insurance premiums for or on behalf of those organizations may apply the Credit against the eligible taxpayer's Health Care Provider Tax liability determined under W. Va. Code § 11-27-16 if the following requirements are satisfied:

7.2.1. The medical liability insurance premiums shall be paid by a payor, as defined in this section, and the payments shall be made to insure against medical liabilities arising out of or resulting from physicians' services provided by a physician while practicing in service to or under the organizational identity of an eligible taxpayer organization or as an employee of the eligible taxpayer organization. The insurance shall cover the medical liability of:

7.2.1.a. the eligible taxpayer organization;

7.2.1.b. one or more physicians practicing in service to or under the organizational identity of the eligible taxpayer organization or as an employee of the eligible taxpayer organization; or

7.2.1.c. any combination thereof.

7.2.2. For purposes of this section:

7.2.2.a. The term "payor" means a natural person who is a partner, member, shareholder or owner, in whole or in part, of an eligible taxpayer organization and who pays medical liability insurance premiums for or on behalf of the eligible taxpayer organization.

7.2.3. The annual Credit allowable shall be applied to reduce the tax liability directly payable under W. Va. Code § 11-27-16 by the payor, as defined in this section, but determined after application of all other allowable credits and exemptions.

7.2.4. After application of the Credit as provided in subdivision 7.2.3 of this subsection, any remaining annual credit shall then be applied to reduce the tax liability directly payable under W. Va. Code § 11-27-16 by the eligible taxpayer organization but determined after application of all other allowable credits and exemptions.

7.2.5. Where a payor pays medical liability insurance premiums for and provides services to or under the organizational identity of two or more eligible taxpayer organizations or as an employee of two or more eligible taxpayer organizations, the tax credit shall be allocated among the eligible taxpayer organizations in proportion to the medical liability insurance premiums paid directly by the payor during the taxable year to cover physicians' services during such year for, or on behalf of, each eligible taxpayer organization.

7.2.5.a. In no event may the total credit claimed by all eligible taxpayers and eligible taxpayer organizations exceed the credit which would be allowable if the payor had paid all the medical liability insurance premiums for or on behalf of one eligible taxpayer organization, and if all physician's services had been performed for, or under the organizational identity of, or by employees of, one eligible taxpayer organization.

W. Va. Code R. § 110-13P-7