H.R. 7884: Healthcare is Human Act of 2026

This bill, known as the Healthcare is Human Act of 2026, proposes changes to the Internal Revenue Code to create a tax credit for health care professionals who provide services in qualifying facilities. Here’s a breakdown of what the bill entails:

1. Tax Credit Overview

The bill establishes a new section in the tax code providing a tax credit to licensed or certified health professionals who deliver qualifying health care services. This tax credit varies based on the number of hours worked within a calendar year:

• $300 for months where more than 80 but not more than 120 hours of services are provided.
• $400 for months where more than 120 but not more than 160 hours are provided.
• $500 for months where more than 160 hours are provided.

2. Qualifying Individuals

A "qualifying individual" is defined as a health professional who is licensed or certified under federal or state law, and who provides health care services in a qualifying facility. The facilities must be in good standing to qualify for this credit.

3. Qualifying Health Care Services

The services that qualify for the tax credit include:

• Any services that can be reimbursed under Medicare (title XVIII of the Social Security Act).
• Hospital care and related services provided to veterans under specific conditions.

However, some services are excluded from this tax credit, including:

• Durable medical equipment.
• Personal care services.
• Home health or hospice care not billed under Medicare or Medicaid.

4. Qualifying Facilities

A "qualifying facility in good standing" refers to:

• Medical facilities operated by the Department of Veterans Affairs (VA).
• Facilities located in designated health professional shortage areas, and enrolled in Medicare or Medicaid programs.

5. Income Limitations and Requirements

There are specific income limits that apply:

• No credit for individuals with a modified adjusted gross income exceeding $400,000 for joint returns or surviving spouses, or $200,000 for other taxpayers.

Additionally, to qualify for the credit, individuals must provide at least 80 hours of services in each of eight months during the taxable year.

6. Termination of Credit

The tax credit would not be available for any tax year beginning after December 31, 2030.

7. Evaluation and Reporting

The Comptroller General of the United States is required to prepare a report by June 30, 2030, assessing the impact of this credit on the retention of health care professionals in shortage areas and the quality of care provided in VA facilities. This report will cover:

• The overall impact of the tax credit.
• Effects on care quality in VA medical facilities and clinics.
• Access and staffing improvements in underserved areas.
• Recommendations for enhancing the program's effectiveness.

8. Effective Date

The provisions of this bill would take effect for taxable years beginning after December 31, 2025.

Relevant Companies

None found.