Individual income tax: credit; credit for certain advanced practice registered nurses who serve as a preceptor; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 281.
The legislation could significantly impact the nursing education landscape in Michigan by providing financial encouragement for APRNs to participate in training future nurses. By recognizing and compensating preceptors—who otherwise do not receive payment for their time—the bill aims to enhance the quality and availability of clinical training, which is critical for nursing students to gain hands-on experience. Furthermore, if the credit surpasses a taxpayer's liability, the excess amount may be refunded, ensuring that the benefit supports a wider range of participants.
Senate Bill 361 (SB0361) aims to amend the Income Tax Act of 1967 by introducing a tax credit for advanced practice registered nurses (APRNs) who serve as preceptors for nursing students' clinical rotations. Specifically, the bill allows eligible taxpayers to claim a credit of $1,000 for every 250 hours spent as a preceptor, up to a maximum of $5,000 per tax year, applicable for tax years from January 1, 2023, to December 31, 2027. This credit is designed to incentivize experienced nurses to take on the important role of educating and mentoring the next generation of nurses, helping to address potential shortages in the nursing workforce.
While generally perceived as a positive move, the introduction of this tax credit could raise discussions regarding the potential financial implications for state revenue, especially given that tax credits can decrease overall tax income for the state. Additionally, there may be concerns over whether the cap of $5,000 is sufficient to motivate APRNs to take on precepting roles, as these positions often require significant time and commitment. The bill beckons a broader dialogue about balancing incentives and maintaining fiscal responsibility within state tax policies.