HOUSE BILL NO. 2810 Offered January 10, 2007 Prefiled January 10, 2007 A BILL to amend the Code of Virginia by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.12, relating to individual income tax credits for certain prescription drug expenses. ---------- Patron-- Sickles ---------- Committee Referral Pending ----------

Be it enacted by the General Assembly of Virginia:

1.  That the Code of Virginia is amended by adding in Article 3 of Chapter 3 of Title 58.1 a section numbered 58.1-339.12 as follows:

§ 58.1-339.12. Prescription drug tax credit.

A. For taxable years beginning on or after January 1, 2007, any individual shall be entitled to a credit against the tax levied pursuant to § 58.1-320 for the cost of certain prescription drugs paid by the individual during the taxable year. The amount of the credit for each taxable year shall equal 100 percent of the expenses other than monthly premiums that are incurred by the individual for prescription drugs covered under the Medicare Part D Prescription Drug Program for which the program would have paid a specified amount of such expenses for the individual except that the expenses were incurred during the coverage gap period pursuant to 42 U.S.C. § 139SW-102(b) and specified by the individual's Part D Prescription Drug Plan.

B. If the amount of the credit as determined in subsection A exceeds the individual's income tax liability for the taxable year, the amount that exceeds such liability may be carried over for credit against the income taxes of such individual in the next five taxable years or until the full credit is used, whichever occurs first.

C.  The credit described in this section shall not be claimed to the extent the individual has claimed the same expenses as a deduction for federal income tax purposes