TRICARE Benefit
TRICARE Benefit for tax years 2008 – 2011 (no longer a current program)
HB 3201 and SB 1060
Oregon legislation was passed in 2007 giving Oregon health care providers who have TRICARE contracts the benefit of claiming a state income tax credit and/or a subtraction from federal taxable income for tax year 2008 - 2011 returns only.
In the original 2007 HB3201, the subtraction was to have taken effect beginning with tax year 2007. However, SB1060, passed during the 2008 Oregon legislature special session, altered that effective date to tax year 2008.
Pertinent Excerpts from HB3201
Subtraction:
There shall be subtracted from federal taxable income: any amount paid by the TRICARE military health care system to a health care provider during the first two years that the health care provider participates in the TRICARE system.
Credit:
A health care provider who enters into a contract for the first time on or after January 1, 2007….shall be allowed a one-time credit….in the amount of $2,500. Credits to the same provider in subsequent years will be in the amount of $1,000. Credits to providers who were contracted with TRICARE prior to January 1, 2007 will be in the amount of $1,000.
The Oregon Office of Rural Health (ORH) has the task of establishing eligibility criteria for the TRICARE benefit. The criteria for eligibility will change annually because the legislative language set limits on the number of health care providers who may be certified as eligible in any given year:
Tax year:
- 2008: 500 certifications
- 2009: 1000 certifications
- 2010: 1500 certifications
- 2011: 2000 certifications
Eligibility Criteria For Tax Year 2011
2011 TRICARE eligibility informationEligibility Criteria for Tax Year 2010
Eligibility criteria for tax year 2009
Eligibility criteria for tax year 2008
TriCare Tax Credit Notification Process
In February of calendar year 2012, ORH received 2011 data directly from TriWest (the administrator of the TRICARE program) and will notify those providers who are eligible for the Tax Credit and/or Subtraction. Notification, along with instructions on how to claim the credit or subtraction, will be sent via postal mail to providers’ office addresses no later than February 28, 2012.
Note: If you do not receive a notification of eligibility for tax year 2011 by March 16, 2012, and you believe you meet the criteria, contact Linda Peppler.
The electronic filing code for this credit is 746. The electronic filing code for the subtraction is 343.
