Tax Incentive legislation for physician EHR adoption reintroduced at federal level

Rep. Phil Gingrey (R-Ga.) has reintroduced legislation that would encourage the adoption of electronic health records and electronic prescriptions by offering tax incentives to health care providers who purchase IT. The bill would amend the Internal Revenue Code to increase the allowed deduction for purchasing health IT. The first year deduction of rapid depreciation for qualified health IT products would increase from $100,000 to $250,000 and maximum annual purchase costs for qualifying IT equipment would increase from $400,000 to $600,000. The price increases would allow physicians to purchase other medical equipment the same year they purchase health IT systems.