Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
March 3, 2025
The Honorable Caryn Tyson, Chairperson
Senate Committee on Assessment and Taxation
300 SW 10th Avenue, Room 548-S
Topeka, Kansas 66612
Dear Senator Tyson:
SUBJECT: Fiscal Note for SB 224 by Senate Committee on Assessment and Taxation
In accordance with KSA 75-3715a, the following fiscal note concerning SB 224 is
respectfully submitted to your committee.
SB 224 would enact the Preceptor Income Tax Incentive Act. The bill would define a
community-based faculty preceptor, or preceptor, as an individual who is licensed by the State of
Kansas as a nursing home administrator, registered nurse, or registered dietitian. The bill would
define preceptorship as an uncompensated mentoring experience in which a community-based
faculty preceptor provides a program of personalized instruction, training, and supervision to a
Board of Regents student or a student of a postsecondary institution. The bill would define a
student as an individual participating in a training program for the training of nursing home
administrator, registered nurse, or certified dietary manager from a postsecondary institution or
from an entity approved to provide continuing education programs or courses approved by the
Board of Adult Care Home Administrators.
The bill would provide a non-refundable income tax credit to a community-based faculty
preceptor that conducts a preceptorship for a student. For every 40 hours of precepting provided
to a student, the preceptor would be entitled to a $250 income tax credit beginning in tax year
2025. The bill would not limit the amount of tax credits a community-based faculty preceptor
could accrue based on the number of completed 40 hours the preceptor completes during the tax
year. The bill includes certification requirements for a preceptor and reporting requirements for
education institutions. A preceptor would not accrue tax credits if the preceptor or their employer
is compensated by another organization for the same preceptorship.
The Honorable Caryn Tyson, Chairperson
Page 2—SB 224
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- $108,985 --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $108,985 --
Revenues
State General Fund -- ($1,500,000) ($1,500,000)
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- ($1,500,000) ($1,500,000)
FTE Positions -- -- --
The Department of Revenue estimates that SB 224 would decrease State General Fund
revenues by $1.5 million in FY 2026 and in each future fiscal year. To formulate these estimates,
the Department of Revenue reviewed data that shows there are currently 61,828 licensed registered
nurses, licensed nurse practitioners, and employed dietitians in Kansas. If 10.0 percent of these
licensed individuals claim tax credits for 120 hours assisting with a clinical course and one third
of these tax credits are allowed against tax liability, then this new tax credit would reduce State
General Fund revenues by approximately $1.5 million each year beginning in FY 2026.
The Department indicates that the bill would require $108,985 from the State General Fund
in FY 2026 to implement the bill and to modify the automated tax system. The required
programming for this bill by itself would be performed by existing staff of the Department of
Revenue. In addition, if the combined effect of implementing this bill and other enacted legislation
exceeds the Department’s programming resources, or if the time for implementing the changes is
too short, additional expenditures for outside contract programmer services beyond the
Department’s current budget may be required.
The Board of Regents indicates that the bill would have no fiscal effect on its operations.
Any fiscal effect associated with SB 224 is not reflected in The FY 2026 Governor’s Budget
Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Becky Pottebaum, Board of Regents
Lynn Robinson, Department of Revenue