The bill establishes the Preceptor Income Tax Incentive Act, which aims to provide tax credits for nursing home administrators, registered nurses, and registered dietitians who serve as community-based faculty preceptors in adult care homes and medical care facilities. These preceptors will offer personalized instruction, training, and supervision to students from postsecondary educational institutions or sponsored programs pursuing careers in these fields. The tax credit is designed to encourage more professionals to mentor students, addressing the barriers to professional instruction and supervision in aging and healthcare services.

Under the provisions of the bill, for the taxable years 2025 through 2029, preceptors can earn a tax credit of $250 for every completed 40 hours of preceptorship, with a maximum credit of $750 per taxpayer per year and a total cap of $50,000 on credits allowed each year. Preceptors must certify their hours and confirm they did not receive compensation for the training. Additionally, educational institutions or sponsored programs must provide annual statements verifying the hours of instruction provided by the preceptors. The bill also clarifies definitions related to community-based faculty preceptors, postsecondary institutions, and preceptorships.