to the same extent as such services are available to 
the pediatric population of the State, subject to 
paragraph (3), in the case of a State that amends 
its plan under this title to incorporate, and to imple-
ment, the requirements specified in paragraph (2), 
notwithstanding section 1905(b), the Federal med-
ical assistance percentage applied under the plan 
with respect to expenditures for dental and oral 
health services for children shall be increased by 25 
percentage points, but not to exceed 90 percent. 
‘‘(2) PROVIDER
PARTICIPATION
AND
ACCESS 
REQUIREMENTS.—The requirements specified in this 
paragraph for a State are that the State provides 
the Secretary with assurances regarding each of the 
following: 
‘‘(A) Children enrolled in the State plan 
have access to oral health care services to the 
same extent as such services are available to the 
pediatric population of the State. 
‘‘(B) Payment for dental services for chil-
dren under the State plan is made at levels con-
sistent with the market-based rates. 
‘‘(C) No fewer than 35 percent of the prac-
ticing dentists (including a reasonable mix of 
general dentists, pediatric dentists, and oral 
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and maxillofacial surgeons) in the State partici-
pate (whether directly or through a plan pro-
viding dental services) under the State plan and 
there is reasonable distribution of such dentists 
serving the covered population. 
‘‘(D) Administrative barriers under this 
title are addressed to facilitate such provider 
participation, including improving eligibility 
verification, ensuring that any licensed dentist 
may participate in a publicly funded plan with-
out also having to participate in any other plan, 
simplifying claims forms processing, assigning a 
single plan administrator for the dental pro-
gram, and employing case managers to reduce 
the number of missed appointments. 
‘‘(E) Demand for services barriers under 
this title are addressed, such as educating care-
givers regarding the need to seek dental serv-
ices and addressing oral health care literacy 
issues. 
‘‘(3) 3 YEAR REVIEW.—Every 3 years the Sec-
retary shall evaluate the impact of the increase in 
the FMAP under paragraph (1) on the rate of par-
ticipation of dentists and the use of dental services 
under the State plan. If the Secretary determines 
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that such increase in the FMAP has not resulted in 
a commensurate increase in such participation and 
use rate, as determined in consultation with the 
State involved, paragraph (1) shall no longer apply 
in such State.’’. 
(b) APPLICATION TO SCHIP.—Section 2105(b) of 
such Act (42 U.S.C. 1397ee(b)) is amended by adding at 
the end the following: ‘‘Notwithstanding the previous sen-
tence, the provisions of section 1903(aa) shall apply with 
respect to the enhanced FMAP and the State plan under 
this title in the same manner as such provisions apply with 
respect to the Federal medical assistance percentage and 
the State plan under title XIX.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures in calendar quar-
ters beginning on or after October 1, 2007. 
TITLE III—TAX CREDIT FOR 
DONATED DENTAL SERVICES 
SEC. 301. TAX CREDIT FOR DONATION OF CERTAIN DENTAL 
SERVICES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
inserting after section 45N the following new section: 
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‘‘SEC. 45O. DONATION OF CERTAIN DENTAL SERVICES. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
qualified dental services credit determined under this sub-
section for any taxable year is an amount equal to 30 per-
cent of the sum of the discounted amounts with respect 
to qualified dental services provided by the taxpayer dur-
ing the taxable year to qualified low income individuals. 
‘‘(b) LIMITATION.—The credit determined under sub-
section (a) with respect to any taxpayer for any taxable 
year shall not exceed $5,000. 
‘‘(c) DISCOUNTED AMOUNTS.—For purposes of the 
this section— 
‘‘(1) IN
GENERAL.—The term ‘discounted 
amount’ means, with respect to any qualified dental 
service, the excess of— 
‘‘(A) the usual amount charged by the tax-
payer to an uninsured individual for such serv-
ice, over 
‘‘(B) any amount charged or received by 
the taxpayer for such service. 
‘‘(2) DISCOUNT MUST BE AT LEAST 90 PER-
CENT.—Such term shall not include any amount 
with respect to any qualified dental service if the 
amount described in paragraph (1)(B) with respect 
to such service exceeds 10 percent of the amount de-
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scribed in paragraph (1)(A) with respect to such 
service. 
‘‘(d) QUALIFIED LOW INCOME INDIVIDUALS.—For 
purposes of this section, the term ‘qualified low income 
individual’ means any individual whose family income does 
not exceed 200 percent of the poverty line (as defined by 
the Office of Management and Budget). 
‘‘(e) QUALIFIED DENTAL SERVICES.—For purposes 
of this section, the term ‘‘qualified dental services’’ means 
any dental service which is necessary to prevent disease 
or promote oral health, restore oral structure to health 
and function, or to treat an emergency condition.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (30), by 
striking the period at the end of paragraph (31) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing: 
‘‘(32) the qualified dental services credit deter-
mined under section 45O(a).’’. 
(2) The table of sections of such subpart is 
amended by inserting after the item relating to sec-
tion 45N the following new item: 
‘‘Sec. 45O. Donation of certain dental services.’’. 
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