The bill proposes the establishment of the Preceptor Tax Incentive Program, which aims to provide tax incentives for medical and counseling professionals who train students in their respective fields. It introduces a new subchapter to the Arkansas Code, defining key terms such as "counseling student," "faculty preceptor," "medical student," and "nursing student." The program allows for two types of faculty preceptors: uncompensated and compensated. Uncompensated faculty preceptors can receive a tax credit of $1,000 per student trained, with a maximum of $10,000 per year, while compensated faculty preceptors can receive a tax credit equal to their compensation for training, capped at $6,000.

The bill also specifies that if the tax credit exceeds the taxpayer's income tax liability, the excess will not be refunded. The provisions of this act will take effect for tax years beginning on or after January 1, 2023. This initiative is designed to encourage experienced professionals to mentor the next generation of medical and counseling practitioners, thereby enhancing the quality of training and support for students in these critical fields.