Sec. 1. 36 MRSA §5219-S is enacted to read:

§5219-S.__Credit for uncollected prescription drug copayment

A taxpayer is allowed a credit against the tax imposed under this Part equal to the annual total of point-of-sale prescription drug copayments waived by the pharmacy pursuant to federal law for Medicaid recipients.__For the purposes of this section, "taxpayer" means a pharmacy licensed in this State pursuant to Title 32, chapter 117, subchapter III.

Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2001.

SUMMARY

Current law requires pharmacies to waive the $2 prescription drug copayment due from Medicaid recipients for Medicaid recipients who report that they are unable to pay the copayment. The copayment is absorbed by the pharmacy.

This bill allows the pharmacy a credit against state income taxes equal to the amount of the copayment waived by the pharmacy during that tax year.