Iowa House Bill HF157

Iowa 2023-2024 Regular Session

• Introduced: 1/30/23
• Refer: 1/30/23

Caption

A bill for an act creating a nurse preceptor tax credit available against the individual income tax, and including applicability provisions.

Impact

The introduction of this tax credit is intended to address the shortage of nursing instructors. By providing a financial incentive, the state aims to attract more seasoned nurses into teaching roles, thereby enhancing the quality and availability of nursing education. This could positively impact the healthcare system in Iowa by ensuring a steady supply of qualified nurses. However, concerns may arise about the financial implications of this tax credit on the state's budget, as it represents a potential decrease in tax revenue.

Summary

House File 157 introduces a new tax credit aimed at encouraging licensed nurses in Iowa to engage in clinical education by acting as preceptors for nursing students. The bill defines a 'nurse preceptor' as a licensed nurse who supervises nursing students during their clinical rotations. If enacted, this legislation would allow eligible nurses to claim a tax credit of $1,000 against their individual income tax for each year they serve as preceptors, starting from tax years beginning on or after January 1, 2024. The credit is nonrefundable, meaning it can reduce tax liability but cannot be paid out if it exceeds the liability; however, excess credit can be carried forward for up to five years.

Contention

Discussions around HF157 may highlight differing opinions on the effectiveness of tax credits as a way to incentivize educational roles in healthcare. Proponents of the bill are likely to argue that financial incentives can significantly enhance nurse participation in clinical education, whereas critics may question whether this approach adequately addresses the broader systemic issues related to the nursing workforce. Debates may also touch on the administration of the credit, including the specific qualifications and requirements set forth by the Department of Revenue, as these rules could influence acceptance and effectiveness of the bill.