Effective for 2012 and thereafter, health care providers can take advantage of an electronic medical records credit equal to 50% of the amount paid in the taxable year for information technology hardware or software that is used to maintain medical records in electronic form.
“Health care provider” means any of the following if certified, licensed, or defined under Wisconsin law:
- nurse
- chiropractor
- dentist
- physician
- physician assistant
- perfusionist
- respiratory care practitioner
- physical therapist
- podiatrist
- dietitian
- athletic trainer
- occupational therapist or occupational therapist assistant
- optometrist
- pharmacist
- acupuncturist
- psychologist
- social worker
- marriage and family therapist
- professional counselor
- speech language pathologist
- audiologist
- massage therapist or body worker
- a partnership of specified providers
- a corporation or limited liability company of specified providers that provides health care services
- an operational cooperative sickness care plan that directly provides services through salaried employees in its own facility
- a hospice
- an inpatient health care facility
- a community-based residential facility
- a rural medical center
The Wisconsin Department of Revenue is responsible for certifying health care providers as eligible for the credit and determines the amount of credits to allocate to the health care provider. The applicant must complete Schedule EM-C by January 31 of the year following the calendar year in which qualified information technology expenses are paid. The total amount of electronic medical records credits allocated to health care providers in any year may not exceed $10,000,000.
If a computed credit is not entirely offset against Wisconsin income or franchise taxes otherwise due, the unused balance may be carried forward and credited against Wisconsin income or franchise taxes otherwise due for the following 15 years.
More information on this credit can be found by reviewing Wisconsin’s fact sheet.
For more information on the credit or how it may apply to you please contact your Schenck account director or a member of our State & Local Tax team at 800-236-2246.