The proposed bill introduces the Preceptorship Tax Credit Act, which aims to provide a nonrefundable income tax credit for licensed physicians who serve as preceptors in preceptorship programs. Under this act, starting from taxable years beginning on or after January 1, 2026, physicians can receive a credit of $1,000 for each rotation completed without compensation, with a maximum credit of $5,000 per year. The bill defines key terms such as "preceptor," "preceptorship program," and "rural location," and establishes that the Department of Revenue will oversee the application process, which includes submitting an affidavit and other required documentation. The total credits approved in any fiscal year will be capped at $1 million, with priority given to physicians in rural areas.

Additionally, the bill amends section 77-2715.07 of the Revised Statutes Cumulative Supplement, 2024, to include the Preceptorship Tax Credit Act among the various tax credits available to individuals. This amendment replaces the previous language regarding the Caregiver Tax Credit Act with the new provision for the Preceptorship Tax Credit Act. The bill also allows the Department of Revenue to create rules and regulations to implement the new tax credit program effectively. The original section 77-2715.07 is set to be repealed as part of this legislative change.

Statutes affected:
Introduced: 77-2715.07