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Posted By: Susanne J. Phillips, DNP, APRN, FNP-BC
July 09, 2019
This blog is information only and not to be construed for legal tax advice—you must consult your tax professional regarding personal tax advice.
If you practice in a state that does not authorize tax credits for precepting NP and PA students, perhaps it is time to engage in a multidisciplinary legislative effort benefiting not only NP, PA, and physician providers, but health profession-students and patients as well!
For NPs and PAs practicing in Georgia and South Carolina, legislation passed and enacted this year authorized state income tax credit for serving as a preceptor to NP and PA students. Although the policies vary from state to state, Georgia and South Carolina join Colorado, Hawaii, and Maryland in recognizing the importance of training advanced practice providers in primary care to improve access for our most vulnerable patient populations, and the tax credits supports these NP and PA preceptors. This type of policy change is a win-win for patients, students, and preceptors alike. Patients enjoy improved access to care, students and faculty enjoy the increased number of training opportunities, and preceptors enjoy the state income tax credit. Maine has a similar bill currently working its way through the legislative process this year.
Effective May 16, 2019, Act No. 45 of the General Assembly of South Carolina amended Article 25, Chapter 6, Title 12 of the 1976 Code. This new law adds Section 12-6-3800 to allow an income tax credit for each clinical rotation served by a physician, advanced practice registered nurse (APRN), or PA as a preceptor for certain educational programs. The new law defines the terms for the tax credits, preceptors, practice site requirements, and educational program requirements. You can find additional information on the South Carolina bill at www.scstatehouse.gov/sess123_2019-2020/bills/314.htm.
Effective July 1, 2019 is Act 44 of the General Assembly amends Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated. This new law deletes an income tax deduction for certain physicians serving as community-based faculty physicians and creates a new income tax credit for licensed physicians, APRNs, and PAs who provide uncompensated preceptorship training to medical, APRN, or PA students for certain periods of time. Procedures, conditions and limitations, as well as terms are defined within the legislation. For more information on the Georgia bill, visit www.legis.ga.gov/Legislation/en-US/display/20192020/HB/287; www.augusta.edu/ahec/ptip/index.php.
Maine – BILL IN SESSION - Summary: LD 1256 (HP 917) currently enrolled and is not signed by the Governor at the time of this blog post: legislature.maine.gov/LawMakerWeb/summary.asp?ID=280072492.
This bill establishes a refundable tax credit in the amount of $500 per student up to a maximum of $1500 per year for a healthcare preceptor who provides, without compensation, instruction to and supervision of APRN students in an approved course of study. A healthcare preceptor may be a licensed physician, PA, or APRN.
Information for Maryland, Colorado, and Hawaii can be found at the following links:
- Hawaii (2018): legiscan.com/HI/text/SB2298/2018
- Colorado (2016): leg.colorado.gov/bills/hb16-1142
- Maryland (2016): pophealth.health.maryland.gov/Pages/taxcredit.aspx