HB1422
To Enact The Preceptor Tax Incentive Program; And To Provide Incentives For Certain Medical Or Counseling Professionals To Train Students Who Are Learning To Become Medical Or Counseling Professionals.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1422 establishes the Preceptor Tax Incentive Program in Arkansas to encourage medical and counseling professionals to provide clinical training to students. The bill provides state income tax credits to 'faculty preceptors' who offer preceptorship rotations, defined as at least 160 hours of community-based training for students in fields such as medicine, nursing, physician assisting, or counseling. Uncompensated preceptors—those who receive no financial remuneration for training—are eligible for a tax credit of $1,000 per student, with an annual cap of $10,000. Compensated preceptors—those receiving payments from training institutions—are eligible for a tax credit equal to their compensation for the training, capped at $6,000 per taxpayer annually. Any excess tax credit beyond the taxpayer's liability is non-refundable. The program applies to tax years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are medical and counseling professionals (physicians, nurses, physician assistants, and licensed counselors) who serve as preceptors and would receive income tax relief for their training efforts. Students in medical, nursing, and counseling programs also benefit indirectly, as the financial incentives for professionals may increase the availability of clinical training slots, potentially easing bottlenecks in educational programs and workforce pipelines.
Who Might Suffer?
The primary group negatively impacted is the state government, specifically the state treasury, which would experience a reduction in tax revenue due to the newly created credits. Taxpayers who do not benefit from this specific incentive program may also be considered to have a relative disadvantage, as tax expenditures directed at a specific professional class reduce the overall tax base that supports public services.
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