Introduced Version
HOUSE BILL No. 1400
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-40.2.
Synopsis: Tax credit for preceptors in medical education. Provides a
credit against the state tax liability of a qualified clinician (preceptor)
in medical education who provides to a student in a particular taxable
year, in return for no compensation as a preceptor, at least 140 hours
of personalized instruction or training related to the student's clinical
rotations required to obtain a professional degree. Provides that the
amount of the credit allowable is equal to the lesser of: (1) $1,000 for
each clinical rotation for which the qualified taxpayer provided the
required instruction or training during the taxable year; or (2) $12,000
per taxable year.
Effective: July 1, 2025.
Manning
January 13, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1400—LS 6722/DI 134 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1400
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-3.1-40.2 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 40.2. Tax Credit for Preceptors in Medical Education
5 Sec. 1. This chapter applies to taxable years beginning after
6 December 31, 2025.
7 Sec. 2. As used in this chapter, "clinician" means an individual
8 who is licensed as one (1) or more of the following:
9 (1) An advanced practice registered nurse licensed to practice
10 in Indiana under IC 25-23.
11 (2) A pharmacist licensed to practice in Indiana under
12 IC 25-26.
13 (3) A physician licensed to practice in Indiana under
14 IC 25-22.5.
15 (4) A physician assistant licensed to practice in Indiana under
16 IC 25-27.5.
17 (5) A psychologist licensed to practice in Indiana under
2025 IN 1400—LS 6722/DI 134 2
1 IC 25-33.
2 Sec. 3. As used in this chapter, "preceptor" means a clinician
3 who, in return for no compensation (other than the wage, salary,
4 commission, or other remuneration the clinician ordinarily
5 receives as compensation for the clinician's job as a clinician),
6 provides to a student in a particular taxable year at least one
7 hundred forty (140) hours of personalized:
8 (1) instruction; or
9 (2) training;
10 related to the student's clinical rotations required to be completed
11 for the student to obtain a professional degree from a school or
12 program described in section 6 of this chapter.
13 Sec. 4. As used in this chapter, "qualified taxpayer" means an
14 individual who:
15 (1) qualifies as a preceptor under this chapter; and
16 (2) has any state tax liability.
17 Sec. 5. As used in this chapter, "state tax liability" means the
18 taxpayer's total tax liability that is incurred under IC 6-3-1
19 through IC 6-3-7 (the adjusted gross income tax), as computed
20 after the application of the credits that, under IC 6-3.1-1-2, are to
21 be applied before the credit provided by this chapter.
22 Sec. 6. As used in this chapter, "student" means an individual
23 who is enrolled in one (1) or more of the following at a public,
24 private, or other accredited institution located in Indiana:
25 (1) A medical school as defined in IC 25-22.5-1-1.1(h).
26 (2) An approved program for physician assistants as defined
27 in IC 25-27.5-2-2.
28 (3) An advanced practice registered nurse program from an
29 accredited college or university.
30 (4) A degree program approved by the state psychology
31 board.
32 (5) A school of pharmacy accredited by the American Council
33 for Pharmacy Education.
34 Sec. 7. (a) Subject to section 8 of this chapter, a qualified
35 taxpayer is entitled to a credit against the qualified taxpayer's state
36 tax liability in the taxable year in which the qualified taxpayer
37 provides instruction or training as set forth in section 3 of this
38 chapter.
39 (b) The amount of the credit allowable under this chapter is
40 equal to the lesser of:
41 (1) one thousand dollars ($1,000) for each clinical rotation
42 completed by the student for whom the qualified taxpayer
2025 IN 1400—LS 6722/DI 134 3
1 provided the required instruction or training during the
2 taxable year; or
3 (2) twelve thousand dollars ($12,000) per taxable year.
4 Sec. 8. To obtain a credit under this chapter, a taxpayer must
5 claim the credit on the taxpayer's annual state income tax return
6 in the manner prescribed by the department. The taxpayer shall
7 submit to the department all information that the department
8 determines is necessary to verify the taxpayer's eligibility for the
9 credit provided by this chapter.
10 Sec. 9. (a) If the department determines within five (5) years of
11 a taxpayer's receipt of a tax credit under this chapter that the
12 taxpayer:
13 (1) did not perform the required instruction or training
14 required to receive the credit under this chapter; or
15 (2) was compensated for any instruction or training required
16 to receive the credit under this chapter;
17 the department shall impose an assessment upon the taxpayer
18 equal to the amount of credit granted to the taxpayer who did not
19 qualify for the credit under this chapter.
20 (b) The department shall deposit assessments collected under
21 this section in the state general fund.
2025 IN 1400—LS 6722/DI 134