The bill establishes the "Preceptor Income Tax Incentive Act," which introduces a tax credit for community-based faculty preceptors, specifically nursing home administrators, registered nurses, and registered dietitians, who provide instruction, training, and supervision to students in adult care homes and medical facilities. For the taxable year 2025 and beyond, preceptors will receive a $250 tax credit for every completed 40 hours of preceptorship provided to a student, with no limit on the number of credits that can be accrued. However, preceptors cannot claim the credit if they or their employers receive compensation from another organization for the same preceptorship.

To claim the tax credit, preceptors must certify their hours of instruction and confirm that they did not receive any payment for training students during the tax year. Educational institutions are required to provide annual statements verifying the hours of preceptorship. The credit is non-refundable and cannot exceed the taxpayer's total income tax liability. The bill aims to incentivize professional mentoring in the healthcare field, addressing barriers to training and supervision necessary for students pursuing careers in nursing and dietary management.