Michigan House Bill HB4730

Michigan 2023-2024 Regular Session

• Introduced: 6/13/23
• Refer: 6/13/23

Caption

Individual income tax: credit; credit for certain physicians and physician's assistants who serve as a preceptor; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.

Impact

The introduction of this tax credit could significantly affect the state law by creating a financial mechanism that may motivate more physicians and physician assistants to engage in teaching roles. By providing this credit, the bill aims to alleviate some of the financial challenges faced by preceptors who volunteer their time to train medical students and physician assistants, which is critical in addressing shortages in these professions. Additionally, it is anticipated that the bill could enhance the quality and quantity of clinical training available to students at state-approved health care sites.

Summary

House Bill 4730 proposes an amendment to the Income Tax Act of 1967 in Michigan, aiming to provide financial incentives for individuals serving as preceptors for medical and physician assistant students. Specifically, the bill allows taxpayers to claim a tax credit of $1,000 for every 250 hours spent as a preceptor, capped at a maximum of $5,000 annually. This credit is applicable for tax years beginning from January 1, 2024, through December 31, 2028. Such incentives are expected to encourage qualified professionals to contribute to the educational development of future medical practitioners.

Contention

While the bill has the potential to streamline the training of future healthcare professionals, there may be contentions regarding the implications of public funding being utilized to subsidize the activities of healthcare providers. Some may argue that the focus should instead be on increasing salaries for preceptors or providing other forms of financial support. Additionally, there may be concerns about the administrative burden of applying for the credit, as taxpayers will be required to provide certified statements and supporting documentation to claim the benefit.