The bill proposes the establishment of the "Preceptor Tax Incentive Program" within Arkansas state income tax laws, aimed at providing tax incentives for medical and counseling professionals who train students in accredited programs. It introduces a new subchapter to the Arkansas Code, defining key terms such as "counseling student," "faculty preceptor," "medical student," and "preceptorship training." The program allows for tax credits for both uncompensated and compensated faculty preceptors, with specific provisions detailing the eligibility criteria and the amount of tax credits available. Uncompensated faculty preceptors can receive a tax credit of $1,000 per student trained, up to a maximum of $10,000 per year, while compensated faculty preceptors can receive credits based on their compensation, capped at $6,000.

The bill also outlines the definitions and requirements for preceptorship rotations, which must total at least 160 hours, and specifies that the tax credits will be applicable for tax years beginning on or after January 1, 2025. This initiative aims 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 fields.