SEC. 2. NONREFUNDABLE CREDIT FOR CERTAIN PRIMARY 
HEALTH 
SERVICE 
PROVIDERS 
SERVING 
HEALTH PROFESSIONAL SHORTAGE AREAS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25D the following new 
section: 
‘‘SEC. 25E. PRIMARY HEALTH SERVICE PROVIDERS SERV-
ING 
HEALTH 
PROFESSIONAL 
SHORTAGE 
AREAS. 
‘‘(a) ALLOWANCE
OF CREDIT.—In the case of a 
qualified primary health service provider, there is allowed 
as a credit against the tax imposed by this chapter for 
any taxable year in a mandatory service period an amount 
equal to the product of— 
‘‘(1) the lesser of— 
‘‘(A) the number of months of such period 
occurring in such taxable year, or 
‘‘(B) 60 months, reduced by the number of 
months taken into account under this para-
graph with respect to such provider for all pre-
ceding taxable years (whether or not in the 
same mandatory service period), multiplied by 
‘‘(2) $1,000. 
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‘‘(b) QUALIFIED PRIMARY HEALTH SERVICE PRO-
VIDER.—For purposes of this section, the term ‘qualified 
primary health service provider’ means any qualified 
health provider who for any month during a mandatory 
service period is certified by the Bureau to be a primary 
health service provider who— 
‘‘(1) is providing health services described in 
subsection (c)— 
‘‘(A) full time, and 
‘‘(B) to individuals at least 80 percent of 
whom reside in a health professional shortage 
area, 
‘‘(2) is not receiving during such year a scholar-
ship under the National Health Service Corps Schol-
arship Program or the Indian health professions 
scholarship program or a loan repayment under the 
National Health Service Corps Loan Repayment 
Program or the Indian Health Service Loan Repay-
ment Program, 
‘‘(3) is not fulfilling service obligations under 
such Programs, and 
‘‘(4) has not defaulted on such obligations. 
‘‘(c) HEALTH SERVICES DESCRIBED.—Health serv-
ices described in this subsection are— 
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‘‘(1) basic health services (as described in sec-
tion 330(b)(1)(A)(i) of the Public Health Service 
Act), 
‘‘(2) qualified psychologist services (as defined 
in section 1861(ii) of the Social Security Act), and 
‘‘(3) clinical social worker services (as defined 
in section 1861(hh) of the Social Security Act. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) QUALIFIED
HEALTH
PROVIDER.—The 
term ‘qualified health provider’ means a physician 
(as defined in section 1861(r) of the Social Security 
Act), a clinical psychologist (within the meaning of 
section 1861(ii) of such Act), and a clinical social 
worker (as defined in section 1861(hh)(1) of such 
Act). 
‘‘(2) MANDATORY SERVICE PERIOD.—The term 
‘mandatory service period’ means the period of 60 
consecutive calendar months beginning with the first 
month the taxpayer is a qualified primary health 
service provider. In the case of an individual who is 
such a provider on the date of enactment of the 
Health Care Access Improvement Act, such term 
means the period of 60 consecutive calendar months 
beginning with the first month after such date. 
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‘‘(3) 
HEALTH
PROFESSIONAL
SHORTAGE 
AREA.—The term ‘health professional shortage area’ 
means a health professional shortage area des-
ignated under section 332 of the Public Health Serv-
ice Act. 
‘‘(4) BUREAU.—The term ‘Bureau’ means the 
Bureau of Primary Health Care, Health Resources 
and Services Administration of the Public Health 
Service. 
‘‘(e) RECAPTURE OF CREDIT.— 
‘‘(1) IN GENERAL.—If, during any taxable year, 
there is a recapture event, then the tax of the tax-
payer under this chapter for such taxable year shall 
be increased by an amount equal to the product of— 
‘‘(A) the applicable percentage, and 
‘‘(B) the aggregate unrecaptured credits 
allowed to such taxpayer under this section for 
all prior taxable years. 
‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the applicable recapture percentage 
shall be determined from the following table: 
Months 1-24 ..................................................
100
Months 25-36 ................................................
Months 37-48 ................................................
Months 49-60 ................................................
Months 61 and thereafter .............................
0. 
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‘‘(B) TIMING.—For purposes of subpara-
graph (A), month 1 shall begin on the first day 
of the mandatory service period. 
‘‘(3) RECAPTURE EVENT DEFINED.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘recapture event’ means 
the failure of the taxpayer to be a qualified pri-
mary health service provider for any month 
during any mandatory service period. 
‘‘(B) CESSATION OF DESIGNATION.—The 
cessation of the designation of any area as a 
rural health professional shortage area after the 
beginning of the mandatory service period for 
any taxpayer shall not constitute a recapture 
event. 
‘‘(C) SECRETARIAL
WAIVER.—The Sec-
retary may waive any recapture event caused by 
extraordinary circumstances. 
‘‘(4) NO CREDITS AGAINST TAX.—Any increase 
in tax under this subsection shall not be treated as 
a tax imposed by this chapter for purposes of deter-
mining the amount of any credit under subpart A, 
B, or D of this part.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
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of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 25D the following 
new item: 
‘‘Sec. 25E. Primary health service providers serving health professional short-
age areas.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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