HB133ENROLLED
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W12A9E-3
By Representatives Rafferty, Daniels
RFD: Ways and Means Education
First Read: 21-Mar-23
2023 Regular Session
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Enrolled, An Act,
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. This act shall be known and may be cited as
the Preceptor Tax Incentive Program Act.
Section 2. For the purposes of this act, the following
terms 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 community-based
faculty 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. An anesthesia assistant program.
f. A certified registered nurse practitioner program.
g. A certified nurse midwife program.
h. A certified registered nurse anesthetist program.
(2) COMMUNITY-BASED ADVANCE PRACTICE NURSE PRECEPTOR. A
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certified registered advance practice nurse 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 certified registered nurse
practitioner, certified nurse midwife, or certified registered
nurse anesthetist program for which he or she receives no
monetary compensation.
(3) COMMUNITY-BASED ASSISTANT TO PHYSICIAN PRECEPTOR.
An assistant to physician licensed under Chapter 24 of Title
34, Code of Alabama 1975, and practicing pursuant to a
registration agreement with a licensed physician, 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
or anesthesia assistant program for which he or she receives
no monetary compensation.
(4) COMMUNITY-BASED FACULTY PRECEPTOR. A
community-based advance practice nurse preceptor;
community-based assistant to physician preceptor; or
community-based physician, dentist, or optometrist preceptor.
(5) COMMUNITY-BASED PHYSICIAN, DENTIST, OR OPTOMETRIST
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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
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, anesthesia assistant program, or certified
registered nurse practitioner, certified nurse midwife, or
certified registered nurse anesthetist program for which he or
she receives no monetary compensation.
(6) MEDICALLY UNDERSERVED RURAL AREA. A primary care
service area with a deficit, or surplus of less than 2.0
primary-care physicians, as shown by the most-recent Status
Report of the Alabama Primary Care Physician Workforce from
the Office for Family Health Education and Research at the UAB
Huntsville Regional Medical Campus.
(7) PROGRAM. The Preceptor Tax Incentive Program.
(8) 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,
anesthesia assistants, or certified registered nurse
practitioners, certified nurse midwives, or certified
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registered nurse anesthetists.
Section 3. (a)(1)The Alabama Statewide Area Health
Education Center Program Office shall administer the program
and certify clinical preceptorships on behalf of all eligible
qualified health professions training programs.
(2) A clinical preceptorship may not be certified as
eligible under the program unless the clinical preceptorship
is performed in a medically underserved rural area.
(b)(1) Prior to the certification of any clinical
preceptorship, the Alabama Statewide Area Health Education
Center Program Office shall conduct a needs assessment of the
current number and current need for community-based faculty
preceptors in the state and submit a final report of the
assessment to the Governor, Speaker of the House of
Representatives, President Pro-Tempore of the Senate, the
Chairs of the Senate Healthcare and House Health Committees,
and the Chairs of the Senate Committee on Finance and Taxation
Education and the House Ways and Means Education Committees.
(2) The Alabama Statewide Area Health Education Center
Program Office shall consult with the Alabama Commission on
the Evaluation of Services to develop the appropriate measures
and methodology for conducting the needs assessment.
Section 4. (a)(1) Beginning with the 2024 tax year, a
community-based faculty preceptor, if he or she conducts a
clinical preceptorship, shall be allowed a credit against the
tax imposed by Section 40-18-2, Code of Alabama 1975, in the
following amounts:
a. A community-based physician, dentist, or optometrist
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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 assistant to physician 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 advance practice nurse 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 may not accrue more than 12 clinical
preceptorships in any combination of the above categories in
one calendar year.
(b) A community-based faculty preceptor may not earn
hours credited toward the tax credit pursuant to subsection
(a) unless the clinical preceptorship has been certified by
the Alabama Statewide Area Health Education Center Program
Office as eligible for the credit.
(c)(1) To receive the credit provided by this act, 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, dental, physician assistant, anesthesia
assistant, or certified registered nurse practitioner,
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certified nurse midwife, and certified registered nurse
anesthetist students; and shall submit supporting
documentation, including certification obtained from the
Alabama Statewide Area Health Education Center Program Office,
to the Department of Revenue.
(2) Failure to provide the required documents shall
result in the automatic denial of the credit.
(d) 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.
(e) Adjudication of possible filing errors or
violations of this act shall be determined by the Department
of Revenue.
Section 5. The Alabama Statewide Area Health Education
Center Program Office shall do both of the following:
(1) Issue to an eligible taxpayer a credit certificate
to indicate the number of approved preceptor rotations and
other information required by the Department of Revenue to
certify the credit being claimed.
(2) Submit an annual informational report to the
Department of Revenue by January 31 annually, which provides
all taxpayer issued certificates with information required by
the Department of Revenue for credit verification.
Section 6. (a) Annually, on or before the first day of
December, the Alabama Statewide Area Health Education Center
Program Office shall report on the condition, performance, and
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accomplishments of the program to the Governor, Speaker of the
House of Representatives, President Pro-Tempore of the Senate,
the Chairs of the Senate Healthcare and House Health
Committees, and the Chairs of the Senate Committee on Finance
and Taxation Education and the House Ways and Means Education
Committees.
(b) The Alabama Statewide Area Health Education Center
Program Office shall consult with the Alabama Commission on
the Evaluation of Services to develop performance metrics and
other measures of success to include in the annual report
required pursuant to subsection (a). During the 2030 fiscal
year, the program shall undergo an evaluation by the Alabama
Commission on the Evaluation of Services to determine whether
the program is impacting the determined measures of success.
Section 7. The Department of Revenue may adopt rules
for the implementation and administration of this act.
Section 8. This act shall be repealed on September 29,
2031, unless extended by act of the Legislature
Section 9. 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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________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 25-Apr-23, as amended.
John Treadwell
Clerk
Senate 01-Jun-23 Passed
House 06-Jun-23 Passed
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