HB1670
To Create The Preceptor Tax Incentive Program; And To Provide Incentives For Certain Medical Or Counseling Professionals To Train Certain Students Who Are Learning To Become Medical Or Counseling Professionals.
Last Action (March 4, 2025): WITHDRAWN BY AUTHOR
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AI-Generated Summary
House Bill 1670 proposes the creation of the 'Preceptor Tax Incentive Program' in Arkansas to encourage medical and counseling professionals to provide training to students. It establishes income tax credits for 'faculty preceptors' who oversee mandatory training rotations for medical, nursing, physician assistant, and counseling students. The bill distinguishes between 'uncompensated' preceptors, who receive no payment from any party for their training services, and 'compensated' preceptors, who are paid as independent contractors by the educational institution. Uncompensated preceptors may receive a $1,000 tax credit per student, capped at $10,000 annually. Compensated preceptors may receive a tax credit equal to their compensation for such services, capped at $6,000 annually. Both types of tax credits are refundable, meaning the state will pay the taxpayer if the credit amount exceeds their tax liability. The program is effective for tax years beginning on or after January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are medical and counseling professionals who serve as faculty preceptors, as they would receive tax credits for training students. Additionally, medical, nursing, physician assistant, and counseling students benefit from potentially increased availability of clinical training opportunities. Healthcare and educational institutions may also benefit indirectly through increased recruitment and retention of training staff and improved clinical education infrastructure.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, as the implementation of these tax credits will result in a direct reduction in state tax revenue. Consequently, taxpayers generally may face the opportunity cost of these funds, which could otherwise have been allocated to other government services or public investments.
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