II 

109TH CONGRESS 

2D SESSION S. 2789 

To amend the Internal Revenue Code of 1986 to provide a tax credit to 

rural primary health providers. 

IN THE SENATE OF THE UNITED STATES 

MAY 11, 2006 

Mr. BURNS (for himself and Ms. MURKOWSKI) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a tax credit to rural primary health providers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rural Physicians Re5 lief Act of 2006’’. 

6 SEC. 2. NONREFUNDABLE CREDIT FOR RURAL PRIMARY 

7 HEALTH SERVICES PROVIDERS . 

8 (a) IN GENERAL.—Subpart A of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 

10 1986 (relating to nonrefundable personal credits) is 


hmoore on PROD1PC68 with HMBILLS
2 

•S 2789 IS

1 amended by inserting after section 25D the following new 

2 section: 

3 ‘‘SEC. 25E. RURAL PRIMARY HEALTH SERVICES PRO4 VIDERS. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in6 dividual who is a qualified primary health services provider 

7 for any month during the taxable year, there shall be al8 lowed as a credit against the tax imposed by this chapter 

9 for such taxable year an amount equal to $1,000 for each 

10 month during such taxable year— 

11 ‘‘(1) which is part of the eligible service period 

12 of such individual, and 

13 ‘‘(2) for which such individual is a qualified pri14 mary health services provider. 

15 ‘‘(b) QUALIFIED PRIMARY HEALTH SERVICES PRO16 VIDER.—For purposes of this section, the term ‘qualified 

17 primary health services provider’ means, with respect to 

18 any month, any physician who is certified for such month 

19 by the Bureau to be a primary health services provider 

20 or a licensed mental health provider who— 

21 ‘‘(1) is primarily providing primary health serv22 ices, and either— 

23 ‘‘(A) substantially all of such primary 

24 health services are provided in frontier areas 


hmoore on PROD1PC68 with HMBILLS
3 

•S 2789 IS

1 (within the meaning of section 330I(r) of the 

2 Public Health Service Act), or 

3 ‘‘(B) such primary health services are pro4 vided in a practice which includes rural patients 

5 from frontier areas (as so defined) in a percent6 age of the total practice which is at least equal 

7 to the percentage of total residents in the State 

8 in which such practice is located who reside in 

9 frontier areas (as so defined), 

10 ‘‘(2) is not receiving during the calendar year 

11 which includes such month a scholarship under the 

12 National Health Service Corps Scholarship Program 

13 or the Indian health professions scholarship program 

14 or a loan repayment under the National Health 

15 Service Corps Loan Repayment Program or the In16 dian Health Service Loan Repayment Program, 

17 ‘‘(3) is not fulfilling service obligations under 

18 such Programs, and 

19 ‘‘(4) has not defaulted on such obligations. 

20 Such term shall not include any individual who is de21 scribed in paragraph (1) with respect to any of the 3 most 

22 recent months ending before the date of the enactment 

23 of this section. 

24 ‘‘(c) ELIGIBLE SERVICE PERIOD.—For purposes of 

25 this section, the term ‘eligible service period’ means the 


hmoore on PROD1PC68 with HMBILLS
4 

•S 2789 IS

1 period of 60 consecutive calendar months beginning with 

2 the first month the taxpayer is a qualified primary health 

3 services provider. 

4 ‘‘(d) OTHER DEFINITIONS AND SPECIAL RULE.—For 

5 purposes of this section— 

6 ‘‘(1) BUREAU.—The term ‘Bureau’ means the 

7 Bureau of Health Care Delivery and Assistance, 

8 Health Resources and Services Administration of the 

9 United States Public Health Service. 

10 ‘‘(2) PHYSICIAN.—The term ‘physician’ has the 

11 meaning given to such term by section 1861(r) of 

12 the Social Security Act. 

13 ‘‘(3) PRIMARY HEALTH SERVICES PROVIDER.— 

14 The term ‘primary health services provider’ means a 

15 provider of basic health services (as described in sec16 tion 330(b)(1)(A)(i) of the Public Health Service 

17 Act). 

18 ‘‘(4) ONLY 60 MONTHS TAKEN INTO AC19 COUNT.—In no event shall more than 60 months be 

20 taken into account under subsection (a) by any indi21 vidual for all taxable years.’’. 

22 (b) CLERICAL AMENDMENT.—The table of sections 

23 for subpart A of part IV of subchapter A of chapter 1 

24 of the Internal Revenue Code of 1986 is amended by inVerDate Aug 31 2005 04:25 May 13, 2006 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2789.IS S2789

hmoore on PROD1PC68 with HMBILLS
5 

•S 2789 IS

1 serting after the item relating to section 25D the following 

2 new item: 

‘‘Sec. 25E. Rural primary health services providers.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2005. 

Æ 


hmoore on PROD1PC68 with HMBILLS