Maryland 2025 Regular Session

Maryland House Bill HB496 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0496
6	6
7	7	HOUSE BILL 496
8	8	Q3 5lr1318
9	9
10	10	By: Delegate R. Lewis
11	11	Introduced and read first time: January 20, 2025
12	12	Assigned to: Ways and Means and Health and Government Operations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income Tax – Credits for Nursing Program Preceptors in Areas With Health 2
19	19	Care Workforce Shortages – Alterations 3
20	20
21	21	FOR the purpose of altering the number of training hours that certain health care 4
22	22	practitioners are required to perform in a nursing program preceptor rotation in 5
23	23	order to qualify for a certain credit against the State income tax; and generally 6
24	24	relating to credits against the State income tax for health care practitioners serving 7
25	25	as preceptors in areas with health care workforce shortages. 8
26	26
27	27	BY repealing and reenacting, without amendments, 9
28	28	Article – Tax – General 10
29	29	Section 10–739(a)(1) and (5) and 10–739.1(a)(1) and (5) 11
30	30	Annotated Code of Maryland 12
31	31	(2022 Replacement Volume and 2024 Supplement) 13
32	32
33	33	BY repealing and reenacting, with amendments, 14
34	34	Article – Tax – General 15
35	35	Section 10–739(b)(1) and 10–739.1(b)(1) 16
36	36	Annotated Code of Maryland 17
37	37	(2022 Replacement Volume and 2024 Supplement) 18
38	38
39	39	BY repealing and reenacting, with amendments, 19
40	40	Chapter 675 of the Acts of the General Assembly of 2022 20
41	41	Section 5 21
42	42
43	43	BY adding to 22
44	44	Article – Health Occupations 23
45	45	Section 8–206(b)(3) 24
46	46	Annotated Code of Maryland 25
47	47	(2021 Replacement Volume and 2024 Supplement) 26
48	48	2 HOUSE BILL 496
49	49
50	50
51	51	BY adding to 1
52	52	Article – Tax – General 2
53	53	Section 10–739 3
54	54	Annotated Code of Maryland 4
55	55	(2022 Replacement Volume and 2024 Supplement) 5
56	56
57	57	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
58	58	That the Laws of Maryland read as follows: 7
59	59
60	60	Article – Tax – General 8
61	61
62	62	10–739. 9
63	63
64	64	(a) (1) In this section the following words have the meanings indicated. 10
65	65
66	66	(5) “Preceptorship program” means an organized system of clinical 11
67	67	experience that, for the purpose of attaining specified learning objectives, pairs a nurse 12
68	68	practitioner student enrolled in a nursing education program that is recognized by the State 13
69	69	Board of Nursing with a nurse practitioner or licensed physician who meets the 14
70	70	qualifications as a preceptor. 15
71	71
72	72	(b) (1) Subject to the limitations of this section, a nurse practitioner or licensed 16
73	73	physician may claim a credit against the State income tax in the amount stated on the tax 17
74	74	credit certificate issued under subsection (c) of this section for the taxable year in which 18
75	75	the nurse practitioner or licensed physician served without compensation as a preceptor in 19
76	76	a preceptorship program approved by the State Board of Nursing and worked: 20
77	77
78	78	(i) a minimum of three rotations, each consisting of at least [100] 21
79	79	90 hours of community–based clinical training; and 22
80	80
81	81	(ii) in an area of the State identified as having a health care 23
82	82	workforce shortage by the Department, in consultation with the Governor’s Workforce 24
83	83	Development Board. 25
84	84
85	85	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 26
86	86	as follows: 27
87	87
88	88	Article – Tax – General 28
89	89
90	90	10–739.1. 29
91	91
92	92	(a) (1) In this section the following words have the meanings indicated. 30
93	93
94	94	(5) “Preceptorship program” means an organized system of clinical 31
95	95	experience that, for the purpose of attaining specified learning objectives, pairs a licensed 32
96	96	practical nurse or registered nurse student enrolled in a nursing education program that is 33 HOUSE BILL 496 3
97	97
98	98
99	99	recognized by the State Board of Nursing with a licensed practical nurse, advanced practice 1
100	100	registered nurse, or registered nurse who meets the qualifications as a preceptor. 2
101	101
102	102	(b) (1) Subject to the limitations of this section, a licensed practical nurse, 3
103	103	advanced practice registered nurse, or registered nurse may claim a credit against the State 4
104	104	income tax in the amount stated on the tax credit certificate issued under subsection (c) of 5
105	105	this section for the taxable year in which the licensed practical nurse, advanced practice 6
106	106	registered nurse, or registered nurse served without compensation as a preceptor in a 7
107	107	preceptorship program approved by the State Board of Nursing and worked: 8
108	108
109	109	(i) a minimum of three rotations, each consisting of at least [100] 9
110	110	90 hours of community–based clinical training; and 10
111	111
112	112	(ii) in an area of the State identified as having a health care 11
113	113	workforce shortage by the Department, in consultation with the Governor’s Workforce 12
114	114	Development Board. 13
115	115
116	116	Chapter 675 of the Acts of 2022 14
117	117
118	118	SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 15
119	119	effect July 1, 2022, and shall be applicable to all taxable years beginning after December 16
120	120	31, 2021[, but before January 1, 2025. Section 2 of this Act shall remain effective for a 17
121	121	period of 3 years and, at the end of June 30, 2025, Section 2 of this Act, with no further 18
122	122	action required by the General Assembly, shall be abrogated and of no further force and 19
123	123	effect]. 20
124	124
125	125	SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 21
126	126	as follows: 22
127	127
128	128	Article – Health Occupations 23
129	129
130	130	8–206. 24
131	131
132	132	(b) (3) (I) IN ADDITION TO THE FE E SET BY THE BOARD UNDER THIS 25
133	133	TITLE FOR THE RENEWA L OF A NURSE PRACTITIONER WHO HOL DS AN ADVANCED 26
134	134	PRACTICE REGISTERED NURSE CERTIFICATION , THE BOARD SHALL ASSESS A 27
135	135	SEPARATE $15 FEE FOR THE RENEWAL OF THE NURSE PRACTIT IONER, REGARDLESS 28
136	136	OF THE NUMBER OF CER TIFICATIONS HELD BY THE NURSE PRACTITION ER. 29
137	137
138	138	(II) THE BOARD SHALL PAY THE FEE COL LECTED UNDER 30
139	139	SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE NURSE PRACTITIONER 31
140	140	PRECEPTORSHIP TAX CREDIT FUND ESTABLISHED UNDE R § 10–739 OF THE TAX – 32
141	141	GENERAL ARTICLE. 33
142	142
143	143	SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 34
144	144	as follows: 35 4 HOUSE BILL 496
145	145
146	146
147	147
148	148	Article – Tax – General 1
149	149
150	150	10–739. 2
151	151
152	152	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
153	153	INDICATED. 4
154	154
155	155	(2) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF 5
156	156	HEALTH. 6
157	157
158	158	(3) “LICENSED PHYSICIAN ” MEANS AN INDIVIDUAL WHO IS LICENSED 7
159	159	TO PRACTICE MEDICINE UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE. 8
160	160
161	161	(4) “NURSE PRACTITIONER ” HAS THE MEANING STAT ED IN § 8–101 9
162	162	OF THE HEALTH OCCUPATIONS ARTICLE. 10
163	163
164	164	(5) “PRECEPTORSHIP PROGRAM ” MEANS AN ORGANIZED S YSTEM OF 11
165	165	CLINICAL EXPERIENCE THAT, FOR THE PURPOS E OF ATTAINING SPECI FIED 12
166	166	LEARNING OBJECTIVES , PAIRS A NURSE PRACTI TIONER STUDENT ENROL LED IN A 13
167	167	NURSING EDUCATION PR OGRAM THAT IS RECOGN IZED BY THE STATE BOARD OF 14
168	168	NURSING WITH A NURSE PRACTITIONER OR LICE NSED PHYSICIAN WHO M EETS THE 15
169	169	QUALIFICATIONS AS A PRECEPTOR. 16
170	170
171	171	(B) (1) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A NURSE 17
172	172	PRACTITIONER OR LICE NSED PHYSICIAN MAY C LAIM A CREDIT AGAINS T THE STATE 18
173	173	INCOME TAX IN THE AM OUNT STATED ON THE T AX CREDIT CERTIFICAT E ISSUED 19
174	174	UNDER SUBSECTION (C) OF THIS SECTION FOR THE TAXABLE YEAR IN WHICH THE 20
175	175	NURSE PRACTITIONER O R LICENSED PHYSICIAN SERVED WITHOUT COMPE NSATION 21
176	176	AS A PRECEPTOR IN A PRECEPTORSHIP PROGRA M APPROVED BY THE STATE BOARD 22
177	177	OF NURSING AND WORKED : 23
178	178
179	179	(I) A MINIMUM OF THREE R OTATIONS, EACH CONSISTING OF A T 24
180	180	LEAST 90 HOURS OF COMMUNITY –BASED CLINICAL TRAIN ING; AND 25
181	181
182	182	(II) IN AN AREA OF THE STATE IDENTIFIED AS H AVING A 26
183	183	HEALTH CARE WORKFORC E SHORTAGE BY THE DEPARTMENT , IN CONSULTATION 27
184	184	WITH THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD. 28
185	185
186	186	(2) (I) THE TOTAL AMOUNT OF T HE CREDIT ALLOWED UNDER T HIS 29
187	187	SECTION FOR ANY TAXA BLE YEAR MAY NOT EXC EED THE STATE INCOME TAX 30
188	188	IMPOSED FOR THAT TAX ABLE YEAR. 31
189	189	HOUSE BILL 496 5
190	190
191	191
192	192	(II) ANY UNUSED AMOUNT OF THE CREDIT FOR ANY T AXABLE 1
193	193	YEAR MAY NOT BE CARR IED OVER TO ANY OTHE R TAXABLE YEAR . 2
194	194
195	195	(C) (1) ON APPLICATIO N BY A NURSE PRACTIT IONER OR LICENSED 3
196	196	PHYSICIAN, THE DEPARTMENT SHALL ISSU E A CREDIT CERTIFICA TE IN THE 4
197	197	AMOUNT OF $1,000 FOR EACH NURSE PRACT ITIONER STUDENT ROTA TION OF THE 5
198	198	MINIMUM NUMBER OF HO URS REQUIRED UNDER S UBSECTION (B)(1)(I) OF THIS 6
199	199	SECTION FOR WHI CH THE NURSE PRACTIT IONER OR LICENSED PH YSICIAN SERVED 7
200	200	AS A PRECEPTOR WITHO UT COMPENSATION . 8
201	201
202	202	(2) THE APPLICATION SHALL CONTAIN: 9
203	203
204	204	(I) THE NAME OF THE NURS E PRACTITIONER OR LI CENSED 10
205	205	PHYSICIAN; 11
206	206
207	207	(II) INFORMATION IDENTIFY ING THE PRECEPTORSHI P IN 12
208	208	WHICH THE NURSE PRACTITION ER OR LICENSED PHYSI CIAN PARTICIPATED ; 13
209	209
210	210	(III) THE NUMBER AND NAMES OF THE NURSE PRACTIT IONER 14
211	211	STUDENTS FOR WHOM TH E INDIVIDUAL SERVED AS A PRECEPTOR WITHO UT 15
212	212	COMPENSATION ; AND 16
213	213
214	214	(IV) ANY OTHER INFORMATIO N THAT THE DEPARTMENT 17
215	215	REQUIRES. 18
216	216
217	217	(3) FOR ANY TAXABLE YEAR , THE AMOUNT OF TAX CR EDIT STATED IN 19
218	218	THE TAX CREDIT CERTI FICATE MAY NOT EXCEE D $10,000. 20
219	219
220	220	(4) THE DEPARTMENT SHALL : 21
221	221
222	222	(I) APPROVE ALL APPLICAT IONS THAT QUALIFY FO R A TAX 22
223	223	CREDIT CERTIFICATE U NDER THIS SUBSECTION ON A FIRST–COME, FIRST–SERVED 23
224	224	BASIS; AND 24
225	225
226	226	(II) NOTIFY A TAXPAYER WI THIN 45 DAYS OF RECEIPT OF T HE 25
227	227	TAXPAYER’S APPLICATION OF ITS APPROVAL OR DENIAL . 26
228	228
229	229	(5) (I) FOR EACH TAXABLE YEAR , THE TOTAL AMOUNT OF TAX 27
230	230	CREDIT CERTIFICATES THAT MAY BE ISSUED B Y THE DEPARTMENT UNDER THIS 28
231	231	SECTION MAY NOT EXCE ED THE LESSER OF : 29
232	232
233	233	1. THE TOTAL FUNDS IN T HE NURSE PRACTITIONER 30
234	234	PRECEPTORSHIP TAX CREDIT FUND FOR THAT YEAR ; OR 31 6 HOUSE BILL 496
235	235
236	236
237	237
238	238	2. $100,000. 1
239	239
240	240	(II) IF THE AGGREGATE AMOU NT OF TAX CREDIT CER TIFICATES 2
241	241	ISSUED UNDER THIS SE CTION DURING A TAXABLE YEA R TOTAL LESS THAN TH E 3
242	242	AMOUNT AUTHORIZED UN DER THIS PARAGRAPH , ANY EXCESS AMOUNT MA Y BE 4
243	243	ISSUED UNDER TAX CRE DIT CERTIFICATES IN THE NEXT TAXABLE YEA R. 5
244	244
245	245	(D) (1) IN THIS SECTION , “FUND” MEANS THE NURSE PRACTITIONER 6
246	246	PRECEPTORSHIP TAX CREDIT FUND ESTABLISHED UNDE R PARAGRAPH (2) OF THIS 7
247	247	SUBSECTION. 8
248	248
249	249	(2) THERE IS A NURSE PRACTITIONER PRECEPTORSHIP TAX CREDIT 9
250	250	FUND. 10
251	251
252	252	(3) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 11
253	253
254	254	(4) THE PURPOSE OF THE FUND IS TO OFFSET THE COSTS OF THE TAX 12
255	255	CREDIT AVAILABLE UNDER THIS SECTION. 13
256	256
257	257	(5) THE FUND IS A SPECIAL CON TINUING, NONLAPSING FUND THAT 14
258	258	IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 15
259	259
260	260	(6) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 16
261	261	AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 17
262	262
263	263	(7) THE FUND CONSISTS OF : 18
264	264
265	265	(I) REVENUE DISTRIBUTED TO THE FUND UNDER § 8–206 OF 19
266	266	THE HEALTH OCCUPATIONS ARTICLE; 20
267	267
268	268	(II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 21
269	269	FUND; AND 22
270	270
271	271	(III) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 23
272	272	FOR THE BENEFIT OF TH E FUND. 24
273	273
274	274	(8) THE MONEY IN THE FUND SHALL BE INVESTE D AND REINVESTED 25
275	275	BY THE STATE TREASURER, AND INTEREST AND EAR NINGS SHALL BE CREDI TED TO 26
276	276	THE GENERAL FUND OF THE STATE. 27
277	277
278	278	(9) (I) EXCEPT AS OTHERWISE P ROVIDED IN THIS PARA GRAPH, 28
279	279	MONEY CREDITED OR APPROPRI ATED TO THE FUND SHALL REMAIN IN THE FUND. 29 HOUSE BILL 496 7
280	280
281	281
282	282
283	283	(II) 1. WITHIN 15 DAYS AFTER THE END O F EACH CALENDAR 1
284	284	QUARTER, THE DEPARTMENT SHALL NOTI FY THE COMPTROLLER AS TO EAC H 2
285	285	CREDIT CERTIFICATE I SSUED DURING THE QUA RTER. 3
286	286
287	287	2. ON NOTIFICATION THAT A CREDIT CERTIF ICATE HAS 4
288	288	BEEN ISSUED BY THE DEPARTMENT , THE COMPTROLLER SHALL TRA NSFER AN 5
289	289	AMOUNT EQUAL TO THE CREDIT AMOUNT STATED IN THE TAX CREDIT CE RTIFICATE 6
290	290	FROM THE FUND TO THE GENERAL FUND OF THE STATE. 7
291	291
292	292	(E) ON OR BEFORE JANUARY 31 EACH TAXABLE YEAR, THE DEPARTMENT 8
293	293	SHALL: 9
294	294
295	295	(1) REPORT TO THE COMPTROLLER ON THE TA X CREDIT 10
296	296	CERTIFICATES ISSUED UNDER THIS SECTION D URING THE PRIOR TAXA BLE YEAR; 11
297	297	AND 12
298	298
299	299	(2) REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 13
300	300	2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE UTILIZATION O F THE 14
301	301	CREDIT ESTABLISHED U NDER THIS SECTION . 15
302	302
303	303	(F) THE DEPARTMENT , IN CONSULTATION WITH THE GOVERNOR’S 16
304	304	WORKFORCE DEVELOPMENT BOARD, SHALL ADOPT REGULATI ONS TO CARRY OUT 17
305	305	THE PROVISIONS OF TH IS SECTION, INCLUDING THE CRITER IA AND PROCEDUR ES 18
306	306	FOR APPLICATION FOR , APPROVAL OF , AND MONITORING ELIGI BILITY FOR THE TAX 19
307	307	CREDIT AUTHORIZED UN DER THIS SECTION . 20
308	308
309	309	SECTION 5. AND BE IT FURTHER ENACTED, That : 21
310	310
311	311	(a) Section 1 of this Act shall be applicable to the taxable year beginning after 22
312	312	December 31, 2024, but before January 1, 2026. 23
313	313
314	314	(b) Section 2 of this Act shall be applicable to all taxable years beginning after 24
315	315	December 31, 2024. 25
316	316
317	317	(c) Subject to the provisions of Section 6 of this Act, Section 4 of this Act shall be 26
318	318	applicable to all taxable years beginning after December 31, 2025. 27
319	319
320	320	SECTION 6. AND BE IT FURTHER ENACTED, That Sections 3 and 4 of this Act 28
321	321	shall take effect on the taking effect of the termination provision specified in Section 2 of 29
322	322	Chapters 385 and 386 of the Acts of the General Assembly of 2016, as amended by Section 30
323	323	3 of Chapters 153 and 154 of the Acts of the General Assembly of 2021. If that termination 31
324	324	provision takes effect, Section 1 of this Act, with no further action required by the General 32
325	325	Assembly, shall be abrogated and of no further force and effect. This Act may not be 33
326	326	interpreted to have any effect on that termination provision. 34 8 HOUSE BILL 496
327	327
328	328
329	329
330	330	SECTION 7. AND BE IT FURTHER ENACTED, That , subject to the provisions of 1
331	331	Section 6 of this Act, this Act shall take effect July 1, 2025. 2