HB 804 -- Pharmaceutical Tax Credit

Sponsor:  Naeger

This bill authorizes an individual income tax credit for certain
elderly or disabled taxpayers for costs incurred for
pharmaceutical drugs.

Taxpayers must be disabled or over the age of 55 years of age to
claim the credit.  The maximum credit is limited to taxpayers
with a defined income of $18,000 or less if single or $20,000 or
less if married.  Qualified taxpayers having defined income
equal to or less than the income cap may take as a credit 100%
of their pharmaceutical costs.  Taxpayers over the income cap
will have their available credit reduced by 10% for every $3,000
of income which exceeds the cap.

The Department of Revenue will be required to produce a table to
assist taxpayers with the income/credit formula and will
identify and notify taxpayers who are potentially eligible for
the credit.

The bill has an effective date of January 1, 2000.