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.
The introduction of this tax credit could potentially reshape the local landscape of healthcare education by encouraging more healthcare professionals to get involved as preceptors. By financially compensating those who contribute their time for educational purposes, it may address the shortage of preceptors for medical and physician assistant programs. This could lead to a better-prepared workforce, ultimately benefiting the healthcare system and improving patient care throughout the state.
Senate Bill 360 aims to amend the Income Tax Act of 1967 by introducing a new tax credit for individuals serving as preceptors for medical and physician assistant students. The bill states that for tax years from 2024 to 2028, a taxpayer can claim a credit of $1,000 for every 250 hours spent as a preceptor, with a maximum credit of $5,000 per year. The intent behind the bill is to incentivize experienced healthcare professionals to participate in the education and training of future medical practitioners, thus enhancing the quality of healthcare education in Michigan.
Despite its potential benefits, the bill may encounter contention regarding the financial implications for the state budget, as providing tax credits could reduce state revenue during the specified tax years. Critics may argue about the sustainability and long-term funding of such programs, suggesting the need for careful analysis before approving extensive tax incentives. Additionally, there may be concerns over ensuring that the credit effectively reaches a diverse group of healthcare professionals and does not inadvertently favor certain demographics over others.