EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0496*
HOUSE BILL 496
Q3 5lr1318
By: Delegate R. Lewis
Introduced and read first time: January 20, 2025
Assigned to: Ways and Means and Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Credits for Nursing Program Preceptors in Areas With Health 2
Care Workforce Shortages – Alterations 3
FOR the purpose of altering the number of training hours that certain health care 4
practitioners are required to perform in a nursing program preceptor rotation in 5
order to qualify for a certain credit against the State income tax; and generally 6
relating to credits against the State income tax for health care practitioners serving 7
as preceptors in areas with health care workforce shortages. 8
BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 10–739(a)(1) and (5) and 10–739.1(a)(1) and (5) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2024 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Tax – General 15
Section 10–739(b)(1) and 10–739.1(b)(1) 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2024 Supplement) 18
BY repealing and reenacting, with amendments, 19
Chapter 675 of the Acts of the General Assembly of 2022 20
Section 5 21
BY adding to 22
Article – Health Occupations 23
Section 8–206(b)(3) 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2024 Supplement) 26
2 HOUSE BILL 496
BY adding to 1
Article – Tax – General 2
Section 10–739 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2024 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Tax – General 8
10–739. 9
(a) (1) In this section the following words have the meanings indicated. 10
(5) “Preceptorship program” means an organized system of clinical 11
experience that, for the purpose of attaining specified learning objectives, pairs a nurse 12
practitioner student enrolled in a nursing education program that is recognized by the State 13
Board of Nursing with a nurse practitioner or licensed physician who meets the 14
qualifications as a preceptor. 15
(b) (1) Subject to the limitations of this section, a nurse practitioner or licensed 16
physician may claim a credit against the State income tax in the amount stated on the tax 17
credit certificate issued under subsection (c) of this section for the taxable year in which 18
the nurse practitioner or licensed physician served without compensation as a preceptor in 19
a preceptorship program approved by the State Board of Nursing and worked: 20
(i) a minimum of three rotations, each consisting of at least [100] 21
90 hours of community–based clinical training; and 22
(ii) in an area of the State identified as having a health care 23
workforce shortage by the Department, in consultation with the Governor’s Workforce 24
Development Board. 25
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 26
as follows: 27
Article – Tax – General 28
10–739.1. 29
(a) (1) In this section the following words have the meanings indicated. 30
(5) “Preceptorship program” means an organized system of clinical 31
experience that, for the purpose of attaining specified learning objectives, pairs a licensed 32
practical nurse or registered nurse student enrolled in a nursing education program that is 33 HOUSE BILL 496 3
recognized by the State Board of Nursing with a licensed practical nurse, advanced practice 1
registered nurse, or registered nurse who meets the qualifications as a preceptor. 2
(b) (1) Subject to the limitations of this section, a licensed practical nurse, 3
advanced practice registered nurse, or registered nurse may claim a credit against the State 4
income tax in the amount stated on the tax credit certificate issued under subsection (c) of 5
this section for the taxable year in which the licensed practical nurse, advanced practice 6
registered nurse, or registered nurse served without compensation as a preceptor in a 7
preceptorship program approved by the State Board of Nursing and worked: 8
(i) a minimum of three rotations, each consisting of at least [100] 9
90 hours of community–based clinical training; and 10
(ii) in an area of the State identified as having a health care 11
workforce shortage by the Department, in consultation with the Governor’s Workforce 12
Development Board. 13
Chapter 675 of the Acts of 2022 14
SECTION 5. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 15
effect July 1, 2022, and shall be applicable to all taxable years beginning after December 16
31, 2021[, but before January 1, 2025. Section 2 of this Act shall remain effective for a 17
period of 3 years and, at the end of June 30, 2025, Section 2 of this Act, with no further 18
action required by the General Assembly, shall be abrogated and of no further force and 19
effect]. 20
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 21
as follows: 22
Article – Health Occupations 23
8–206. 24
(b) (3) (I) IN ADDITION TO THE FE E SET BY THE BOARD UNDER THIS 25
TITLE FOR THE RENEWA L OF A NURSE PRACTITIONER WHO HOL DS AN ADVANCED 26
PRACTICE REGISTERED NURSE CERTIFICATION , THE BOARD SHALL ASSESS A 27
SEPARATE $15 FEE FOR THE RENEWAL OF THE NURSE PRACTIT IONER, REGARDLESS 28
OF THE NUMBER OF CER TIFICATIONS HELD BY THE NURSE PRACTITION ER. 29
(II) THE BOARD SHALL PAY THE FEE COL LECTED UNDER 30
SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE NURSE PRACTITIONER 31
PRECEPTORSHIP TAX CREDIT FUND ESTABLISHED UNDE R § 10–739 OF THE TAX – 32
GENERAL ARTICLE. 33
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 34
as follows: 35 4 HOUSE BILL 496
Article – Tax – General 1
10–739. 2
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4
(2) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF 5
HEALTH. 6
(3) “LICENSED PHYSICIAN ” MEANS AN INDIVIDUAL WHO IS LICENSED 7
TO PRACTICE MEDICINE UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE. 8
(4) “NURSE PRACTITIONER ” HAS THE MEANING STAT ED IN § 8–101 9
OF THE HEALTH OCCUPATIONS ARTICLE. 10
(5) “PRECEPTORSHIP PROGRAM ” MEANS AN ORGANIZED S YSTEM OF 11
CLINICAL EXPERIENCE THAT, FOR THE PURPOS E OF ATTAINING SPECI FIED 12
LEARNING OBJECTIVES , PAIRS A NURSE PRACTI TIONER STUDENT ENROL LED IN A 13
NURSING EDUCATION PR OGRAM THAT IS RECOGN IZED BY THE STATE BOARD OF 14
NURSING WITH A NURSE PRACTITIONER OR LICE NSED PHYSICIAN WHO M EETS THE 15
QUALIFICATIONS AS A PRECEPTOR. 16
(B) (1) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A NURSE 17
PRACTITIONER OR LICE NSED PHYSICIAN MAY C LAIM A CREDIT AGAINS T THE STATE 18
INCOME TAX IN THE AM OUNT STATED ON THE T AX CREDIT CERTIFICAT E ISSUED 19
UNDER SUBSECTION (C) OF THIS SECTION FOR THE TAXABLE YEAR IN WHICH THE 20
NURSE PRACTITIONER O R LICENSED PHYSICIAN SERVED WITHOUT COMPE NSATION 21
AS A PRECEPTOR IN A PRECEPTORSHIP PROGRA M APPROVED BY THE STATE BOARD 22
OF NURSING AND WORKED : 23
(I) A MINIMUM OF THREE R OTATIONS, EACH CONSISTING OF A T 24
LEAST 90 HOURS OF COMMUNITY –BASED CLINICAL TRAIN ING; AND 25
(II) IN AN AREA OF THE STATE IDENTIFIED AS H AVING A 26
HEALTH CARE WORKFORC E SHORTAGE BY THE DEPARTMENT , IN CONSULTATION 27
WITH THE GOVERNOR’S WORKFORCE DEVELOPMENT BOARD. 28
(2) (I) THE TOTAL AMOUNT OF T HE CREDIT ALLOWED UNDER T HIS 29
SECTION FOR ANY TAXA BLE YEAR MAY NOT EXC EED THE STATE INCOME TAX 30
IMPOSED FOR THAT TAX ABLE YEAR. 31
HOUSE BILL 496 5
(II) ANY UNUSED AMOUNT OF THE CREDIT FOR ANY T AXABLE 1
YEAR MAY NOT BE CARR IED OVER TO ANY OTHE R TAXABLE YEAR . 2
(C) (1) ON APPLICATIO N BY A NURSE PRACTIT IONER OR LICENSED 3
PHYSICIAN, THE DEPARTMENT SHALL ISSU E A CREDIT CERTIFICA TE IN THE 4
AMOUNT OF $1,000 FOR EACH NURSE PRACT ITIONER STUDENT ROTA TION OF THE 5
MINIMUM NUMBER OF HO URS REQUIRED UNDER S UBSECTION (B)(1)(I) OF THIS 6
SECTION FOR WHI CH THE NURSE PRACTIT IONER OR LICENSED PH YSICIAN SERVED 7
AS A PRECEPTOR WITHO UT COMPENSATION . 8
(2) THE APPLICATION SHALL CONTAIN: 9
(I) THE NAME OF THE NURS E PRACTITIONER OR LI CENSED 10
PHYSICIAN; 11
(II) INFORMATION IDENTIFY ING THE PRECEPTORSHI P IN 12
WHICH THE NURSE PRACTITION ER OR LICENSED PHYSI CIAN PARTICIPATED ; 13
(III) THE NUMBER AND NAMES OF THE NURSE PRACTIT IONER 14
STUDENTS FOR WHOM TH E INDIVIDUAL SERVED AS A PRECEPTOR WITHO UT 15
COMPENSATION ; AND 16
(IV) ANY OTHER INFORMATIO N THAT THE DEPARTMENT 17
REQUIRES. 18
(3) FOR ANY TAXABLE YEAR , THE AMOUNT OF TAX CR EDIT STATED IN 19
THE TAX CREDIT CERTI FICATE MAY NOT EXCEE D $10,000. 20
(4) THE DEPARTMENT SHALL : 21
(I) APPROVE ALL APPLICAT IONS THAT QUALIFY FO R A TAX 22
CREDIT CERTIFICATE U NDER THIS SUBSECTION ON A FIRST–COME, FIRST–SERVED 23
BASIS; AND 24
(II) NOTIFY A TAXPAYER WI THIN 45 DAYS OF RECEIPT OF T HE 25
TAXPAYER’S APPLICATION OF ITS APPROVAL OR DENIAL . 26
(5) (I) FOR EACH TAXABLE YEAR , THE TOTAL AMOUNT OF TAX 27
CREDIT CERTIFICATES THAT MAY BE ISSUED B Y THE DEPARTMENT UNDER THIS 28
SECTION MAY NOT EXCE ED THE LESSER OF : 29
1. THE TOTAL FUNDS IN T HE NURSE PRACTITIONER 30
PRECEPTORSHIP TAX CREDIT FUND FOR THAT YEAR ; OR 31 6 HOUSE BILL 496
2. $100,000. 1
(II) IF THE AGGREGATE AMOU NT OF TAX CREDIT CER TIFICATES 2
ISSUED UNDER THIS SE CTION DURING A TAXABLE YEA R TOTAL LESS THAN TH E 3
AMOUNT AUTHORIZED UN DER THIS PARAGRAPH , ANY EXCESS AMOUNT MA Y BE 4
ISSUED UNDER TAX CRE DIT CERTIFICATES IN THE NEXT TAXABLE YEA R. 5
(D) (1) IN THIS SECTION , “FUND” MEANS THE NURSE PRACTITIONER 6
PRECEPTORSHIP TAX CREDIT FUND ESTABLISHED UNDE R PARAGRAPH (2) OF THIS 7
SUBSECTION. 8
(2) THERE IS A NURSE PRACTITIONER PRECEPTORSHIP TAX CREDIT 9
FUND. 10
(3) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 11
(4) THE PURPOSE OF THE FUND IS TO OFFSET THE COSTS OF THE TAX 12
CREDIT AVAILABLE UNDER THIS SECTION. 13
(5) THE FUND IS A SPECIAL CON TINUING, NONLAPSING FUND THAT 14
IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 15
(6) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 16
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 17
(7) THE FUND CONSISTS OF : 18
(I) REVENUE DISTRIBUTED TO THE FUND UNDER § 8–206 OF 19
THE HEALTH OCCUPATIONS ARTICLE; 20
(II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 21
FUND; AND 22
(III) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 23
FOR THE BENEFIT OF TH E FUND. 24
(8) THE MONEY IN THE FUND SHALL BE INVESTE D AND REINVESTED 25
BY THE STATE TREASURER, AND INTEREST AND EAR NINGS SHALL BE CREDI TED TO 26
THE GENERAL FUND OF THE STATE. 27
(9) (I) EXCEPT AS OTHERWISE P ROVIDED IN THIS PARA GRAPH, 28
MONEY CREDITED OR APPROPRI ATED TO THE FUND SHALL REMAIN IN THE FUND. 29 HOUSE BILL 496 7
(II) 1. WITHIN 15 DAYS AFTER THE END O F EACH CALENDAR 1
QUARTER, THE DEPARTMENT SHALL NOTI FY THE COMPTROLLER AS TO EAC H 2
CREDIT CERTIFICATE I SSUED DURING THE QUA RTER. 3
2. ON NOTIFICATION THAT A CREDIT CERTIF ICATE HAS 4
BEEN ISSUED BY THE DEPARTMENT , THE COMPTROLLER SHALL TRA NSFER AN 5
AMOUNT EQUAL TO THE CREDIT AMOUNT STATED IN THE TAX CREDIT CE RTIFICATE 6
FROM THE FUND TO THE GENERAL FUND OF THE STATE. 7
(E) ON OR BEFORE JANUARY 31 EACH TAXABLE YEAR, THE DEPARTMENT 8
SHALL: 9
(1) REPORT TO THE COMPTROLLER ON THE TA X CREDIT 10
CERTIFICATES ISSUED UNDER THIS SECTION D URING THE PRIOR TAXA BLE YEAR; 11
AND 12
(2) REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 13
2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE UTILIZATION O F THE 14
CREDIT ESTABLISHED U NDER THIS SECTION . 15
(F) THE DEPARTMENT , IN CONSULTATION WITH THE GOVERNOR’S 16
WORKFORCE DEVELOPMENT BOARD, SHALL ADOPT REGULATI ONS TO CARRY OUT 17
THE PROVISIONS OF TH IS SECTION, INCLUDING THE CRITER IA AND PROCEDUR ES 18
FOR APPLICATION FOR , APPROVAL OF , AND MONITORING ELIGI BILITY FOR THE TAX 19
CREDIT AUTHORIZED UN DER THIS SECTION . 20
SECTION 5. AND BE IT FURTHER ENACTED, That : 21
(a) Section 1 of this Act shall be applicable to the taxable year beginning after 22
December 31, 2024, but before January 1, 2026. 23
(b) Section 2 of this Act shall be applicable to all taxable years beginning after 24
December 31, 2024. 25
(c) Subject to the provisions of Section 6 of this Act, Section 4 of this Act shall be 26
applicable to all taxable years beginning after December 31, 2025. 27
SECTION 6. AND BE IT FURTHER ENACTED, That Sections 3 and 4 of this Act 28
shall take effect on the taking effect of the termination provision specified in Section 2 of 29
Chapters 385 and 386 of the Acts of the General Assembly of 2016, as amended by Section 30
3 of Chapters 153 and 154 of the Acts of the General Assembly of 2021. If that termination 31
provision takes effect, Section 1 of this Act, with no further action required by the General 32
Assembly, shall be abrogated and of no further force and effect. This Act may not be 33
interpreted to have any effect on that termination provision. 34 8 HOUSE BILL 496
SECTION 7. AND BE IT FURTHER ENACTED, That , subject to the provisions of 1
Section 6 of this Act, this Act shall take effect July 1, 2025. 2