HB 390 Summary

• Establishes nonrefundable tax credits for donations made to certified free clinics, applicable to insurance companies, public utilities, financial institutions, and pass-through entities

• Defines "free clinic" as a 501(c)(3) nonprofit providing free or minimal-fee health care to low-income individuals using volunteer professionals, excluding clinics receiving 25% or more annual revenue from Medicare, Medicaid, or third-party payers

• Sets annual credit limits of $1,000 for individuals, $2,500 for joint filers, and $300,000 for other taxpayers; increases limit by 20% annually if 80% of prior year's limit was reached, starting at $20 million for fiscal year 2014

• Requires Department of Health certification of free clinics and approval of individual donations before tax credits can be claimed; allows excess credits to carry forward for three years

• Mandates certified free clinics spend at least 90% of authorized donations on direct health care services (maximum 10% for administrative expenses) and submit annual financial reports verified by certified public accountants