The proposed 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. This credit is designed to encourage these professionals to provide personalized 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 the number of hours of instruction and the amount of the credit claimed to the director of taxation, ensuring they did not receive any payment for the training during that tax year. Additionally, educational institutions must provide annual statements verifying the hours of preceptorship provided to their students. The bill also defines key terms such as "community-based faculty preceptor," "postsecondary institution," "preceptorship," and "student" to clarify eligibility and the nature of the program. The credit is non-refundable and cannot exceed the taxpayer's income tax liability.