HB133INTRODUCED
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W12A9E-1
By Representatives Rafferty, Daniels
RFD: Ways and Means Education
First Read: 21-Mar-23
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5 W12A9E-1 03/07/2023 KMS (L)cr 2023-231
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SYNOPSIS:
This bill would establish the Preceptor Tax
Incentive Program to provide an opportunity for
students enrolled in certain health professions
training programs to train in rural and underserved
counties in the state and to address primary care
shortages in the state.
This bill would provide an income tax credit
incentive of $500 for each 160-hour clinical
preceptorship rotation per calendar year for an
otherwise unpaid community-based faculty preceptor
physician for the following types of students: Medical
allopathic or osteopathic, dental, and optometric.
This bill would also provide an income tax
credit incentive of $425 for each 160-hour clinical
preceptorship rotation per calendar year for an
otherwise unpaid community-based certified registered
nurse practitioner, certified nurse midwife, certified
registered nurse anesthetist, or physician assistant.
A BILL
TO BE ENTITLED
AN ACT
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Relating to state income tax; to establish the
Preceptor Tax Incentive Program to provide income tax credit
incentives for certain medical students who train in rural and
underserved counties in the state.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) The Preceptor Tax Incentive Program is
created.
(b) For the purposes of this section, the following
terms shall have the following meanings:
(1) CLINICAL PRECEPTORSHIP. A clinical educational or
training rotation for a student in any of the following
programs, that are physically located in this state and
approved by and provided through a qualified health
professions training program, for which the clinical
preceptor, also physically located in this state, is otherwise
not compensated for the preceptorship:
a. A medical allopathic or osteopathic program.
b. A dental program.
c. An optometric program.
d. A physician assistant program.
e. A nurse practitioner program.
f. A nurse midwife program.
g. A nurse anesthetist program.
(2) COMMUNITY-BASED FACULTY PRECEPTOR. A physician,
advanced practice nurse, or physician assistant who is
licensed in this state and receives no financial compensation
from any source for the teaching of students in a medical
program, dental program, optometric program, physician
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assistant program, or nurse practitioner, nurse midwife, or
nurse anesthetist program.
(3) COMMUNITY-BASED NURSE PRACTITIONER PRECEPTOR. A
certified registered nurse practitioner licensed under Chapter
21 of Title 34, Code of Alabama 1975, who provides medical
services in a health care facility that is physically located
in this state and not owned or operated by a qualified
nursing, medical, or osteopathic school and who, through an
agreement with a qualified nursing school physically located
in this state, provides one or more clinical preceptorships
for training to students in a nurse practitioner, nurse
midwife, or nurse anesthetist program for which he or she
receives no monetary compensation.
(4) COMMUNITY-BASED PHYSICIAN ASSISTANT PRECEPTOR. An
assistant to physician licensed under Chapter 24 of Title 34,
Code of Alabama 1975, who provides medical services in a
health care facility that is physically located in this state
and not owned or operated by a qualified medical, nursing, or
osteopathic school and who, through an agreement with a
qualified health professions program physically located in
this state, provides one or more clinical preceptorships for
students in a physician assistant program for which he or she
receives no monetary compensation.
(5) COMMUNITY-BASED PHYSICIAN, DENTIST, OR OPTOMETRY
PRECEPTOR. A physician licensed under Chapter 24 of Title 34,
Code of Alabama 1975; a dentist licensed under Chapter 9 of
Title 34, Code of Alabama 1975; or an optometrist licensed
under Chapter 22 of Title 34, Code of Alabama 1975, who
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provides medical services in a health care facility that is
physically located in this state and not owned or operated by
a qualified medical, dental, optometric, nursing, or
osteopathic school and who, through an agreement with a
qualified medical school physically located in this state,
provides one or more clinical preceptorships for students in a
medical program, dental program, optometric program, physician
assistant program, or nurse practitioner, nurse midwife, or
nurse anesthetist program for which he or she receives no
monetary compensation.
(6) HEALTH PROFESSIONAL SHORTAGE AREA. Areas of the
state that are designated by the Health Resources and Services
Administration as having shortages of primary medical care,
dental care, or mental health care providers. A shortage area
may be geographic-based, population-based, or facility-based.
Health professional shortage area scores are based on
discipline-specific methodology, however, three scoring
criteria are common across all health professional shortage
area disciplines:
a. Population to provider ratio.
b. Percentage of the population below 100 percent of
the federal poverty level.
c. Travel time to the nearest source of care outside
the designated shortage area.
(7) MEDICALLY UNDERSERVED AREA and MEDICALLY
UNDERSERVED POPULATION.
a. An area or population in this state identified by
the Health Resources and Services Administration Agency of the
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United States Department of Health and Human Services as a
geographic area and population with a lack of access to
primary care services based on the following established
indicators:
1. Provider per 1,000 population ratio.
2. Percentage of population at 100 percent of the
federal poverty level.
3. Percentage of population age 65 and older.
4. Infant mortality rate.
b. A calculated index of medical underservice score of
62.0 or below qualifies for designation as a medically
underserved area or medically underserved population.
(8) PROGRAM. The Preceptor Tax Incentive Program.
(9) QUALIFIED HEALTH PROFESSIONS TRAINING PROGRAM. An
institution of higher education that is physically located in
this state and has an accredited educational program for
medicine, dentistry, optometry, physician assistants, or nurse
practitioners, nurse midwives, and nurse anesthetists.
(10) RURAL AREA. As defined by the United States Census
Bureau, in the context of health care, health data, and the
location of health care services, all population, housing, and
territory not included within a state-urbanized area with a
population of 50,000 or more.
(c)(1) Beginning with the 2023 tax year, a
community-based physician, dentist, or optometry preceptor,
community-based physician assistant preceptor, or
community-based nurse practitioner, nurse midwife, or nurse
anesthetist preceptor physically located in this state shall
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be allowed a credit against the tax imposed by Section
40-18-2, Code of Alabama 1975, if he or she conducts an unpaid
clinical preceptorship, in the following amounts:
a. A community-based physician, dentist, or optometrist
preceptor shall be allowed a credit of five hundred dollars
($500) per rotation, up to an annual maximum of six thousand
dollars ($6,000).
b. A community-based physician assistant preceptor
shall be allowed a credit of four hundred twenty-five dollars
($425) per rotation, up to an annual maximum of five thousand
one hundred dollars ($5,100).
c. A community-based nurse practitioner, certified
nurse midwife, or certified registered nurse anesthetist
preceptor shall be allowed a credit of four hundred
twenty-five dollars ($425) per rotation, up to an annual
maximum of five thousand one hundred dollars ($5,100).
(2) An individual shall not accrue more than 12
clinical preceptorships of any of the above categories in one
calendar year.
(3) A community-based faculty preceptor shall not be
eligible to earn hours credited toward a clinical
preceptorship tax credit if he or she has not registered with
the Alabama Statewide Area Health Education Center Program
Office in Birmingham, Alabama.
(4) The Alabama Statewide Area Health Education Center
Program Office shall administer the program and certify
clinical preceptorship rotations on behalf of all eligible
public and private training programs for medicine, optometry,
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and dental physician assistant, or nurse practitioner, nurse
midwife, and nurse anesthetist programs physically located in
this state.
(5) To receive the credit provided by this section, a
community-based faculty preceptor shall claim the credit on
his or her state income tax return for the tax year in which
he or she completed the clinical preceptorship rotation; shall
certify that he or she, and the health care center or facility
through which he or she is employed, did not receive monetary
payment during the tax year from any source for the training
of medical, optometry, and dental physician assistant, or
nurse practitioner, nurse midwife, and nurse anesthetist
students; and shall submit supporting documentation to the
Department of Revenue.
(6) In no event shall the total amount of the tax
credit provided by this section for a taxable year exceed the
income tax liability of the taxpayer. No tax credit shall be
allowed the taxpayer against his or her tax liability for
prior or succeeding years.
(d) Adjudication of possible filing errors or
violations of the law shall be determined by the Department of
Revenue.
Section 2. This act shall become effective on the first
day of the third month following its passage and approval by
the Governor, or its otherwise becoming law.
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