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Tax Incentives for Medical Preceptors: A Complete State-by-State Guide

Tax Benefits by State

Alabama

Alabama’s Preceptor Tax Incentive Program (APTIP) represents a vital advancement in supporting primary healthcare providers. Medical professionals in Alabama who choose to serve as preceptors, imparting their wisdom and experience to the next generation, are acknowledged with considerable tax credits. This initiative aims to energize the primary care workforce pipeline by offering up to $6,000 annually in incentives, thus mitigating the shortage of primary healthcare providers through a prudent financial strategy. [1][2]

Alaska

In Alaska, while addressing the preceptor shortage remains a critical issue, the state has yet to implement a tax incentive program akin to those found in other states. Healthcare professionals who take on the role of preceptors do so without the financial encouragement afforded by tax credits. This has significant implications for the future of healthcare education and access, as Alaska considers strategies to bolster its healthcare workforce and incentivize experienced practitioners to mentor the next generation of medical professionals. [3][4]

Tax incentives in California

California’s approach towards encouraging medical preceptors through tax incentives is yet to be firmly established. As states like Georgia, Maryland, and Colorado have taken proactive measures by offering tax credits to medical professionals who mentor students, California is still in the consideration phase. Observers are keenly awaiting developments, as such incentives could significantly impact medical education and patient care across the state. The move is anticipated to attract more qualified preceptors, thereby enhancing the practical training of medical students and addressing the pressing need for healthcare providers. [5][6]

For medical preceptors in Florida

In Florida, the state government recognizes the importance of training the next generation of medical professionals, and to this end, it has implemented measures to incentivize physicians who take on the role of preceptors. Similar to initiatives in other states, Florida’s approach includes offering tax credits and other benefits to medical practitioners who dedicate their time and expertise to mentoring medical students. These incentives are seen as an investment in the state’s healthcare system, aiming to ensure a steady influx of well-trained healthcare professionals ready to serve communities across Florida. [7][8]

Arizona Preceptors

In Arizona, the state has taken a significant step towards rewarding medical preceptors for their contributions to training future healthcare professionals. Through the introduction of House Bill 2137 and as further solidified by House Bill 2691, Arizona provides a pathway for preceptors to apply for a grant. This opportunity is tailored for those who mentor students from the healthcare discipline they represent. The grant, bestowed by a statewide nonprofit organization, is a form of appreciation for preceptors enhancing the medical field’s growth and education in Arizona. [9][10]

Arkansas

Arkansas recognizes the critical role that medical preceptors play in healthcare education and the local community. In response, Arkansas has introduced steps to implement tax incentives for medical preceptors. This initiative not only acknowledges the valuable time and expertise these professionals contribute in training our future healthcare providers but also aids in mitigating the shortage of clinical training sites. As we look across the states, progress varies, and while Arkansas has joined the conversation, details on the structure and application of these incentives are yet to be solidified. [11][12]

Colorado

In Colorado, the state offers a generous gesture to its rural health care preceptors through the Colorado Rural and Frontier Health Care Preceptor Tax Credit. Understanding the crucial role of mentorship in medicine, this incentive serves as a financial nod of appreciation, offering a $1,000 tax credit to eligible preceptors. This initiative not only aids in offsetting the costs associated with volunteering time and expertise but also promotes the training of students in rural settings, where medical professionals are often in short supply. [13][14]

Connecticut

In Connecticut, the push to reduce clinician shortages in underserved areas has led to the introduction of advantageous preceptor tax incentives. Recognizing the critical need for experienced professionals who mentor the next generation of healthcare providers, Connecticut supports its preceptors with attractive tax deductions. These incentives aim to encourage more healthcare experts to participate in the training of students, ensuring that the state maintains a robust and responsive healthcare system for all communities. [15][16]

Delaware

In Delaware, the preceptor tax incentives are a nod to the dedication of healthcare professionals who take the time to mentor aspiring practitioners. Acknowledging the crucial role of these mentors, Delaware’s policymakers aim to bolster the healthcare workforce by offering tax incentives. These fiscal benefits serve not only as a token of appreciation but also as a strategic move to encourage seasoned professionals to invest in the next generation, ensuring the state’s health system thrives. Through such initiatives, Delaware exhibits its commitment to healthcare education and quality patient care. [17][18]

District of Columbia

In the District of Columbia, healthcare professionals who serve as preceptors for aspiring practitioners may be eligible for tax incentives. The goal of these incentives is to recognize the valuable contribution of preceptors in shaping the next generation of healthcare providers. By offering fiscal benefits, the District of Columbia aims to encourage experienced professionals to invest their time and expertise in mentoring and guiding students. This not only helps in strengthening the healthcare workforce but also ensures the delivery of high-quality patient care. The specific details and requirements of the preceptor tax incentives in the District of Columbia can be obtained from the relevant authorities. [19][20]

Georgia Preceptors

Georgia was the first state to enact legislation specifically targeting the shortage of clinical training sites through a tax incentive program. Under this program, participating doctors can receive a $1,000 tax credit per student, with a maximum annual incentive of $10,000. This initiative aims to encourage experienced healthcare professionals to serve as preceptors and mentor the next generation of providers. By offering these tax incentives, Georgia recognizes the invaluable contribution of preceptors in strengthening the healthcare workforce and ensuring the delivery of high-quality patient care. [21][22]

Hawaii

As of now, Hawaii has enacted legislation that offers tax incentives to healthcare professionals who serve as preceptors. While the current legislation does not include eligibility for PA students or preceptors, there have been efforts to expand the scope of the incentives. Legislative proposals have been introduced to include PA students and preceptors in the tax credit program. By expanding the eligibility criteria, Hawaii aims to address the shortage of clinical training sites and encourage more experienced healthcare professionals to mentor the next generation of providers. These tax incentives play a crucial role in strengthening the healthcare workforce and improving patient care in Hawaii. [23][24]

Idaho

In Idaho, there are tax incentives available for medical preceptors to address the shortage of healthcare professionals. The Idaho Commerce offers the Tax Reimbursement Incentive (TRI), which provides a tax credit of up to 30% for up to 15 years on new state tax revenues generated by companies seeking to expand or relocate to Idaho. This incentive aims to encourage healthcare professionals to serve as preceptors in preceptorship programs approved by the Idaho Department of Health. By participating in these programs, preceptors can contribute to the development and training of future healthcare providers while also receiving tax benefits for their valuable service. These tax incentives play a crucial role in strengthening the healthcare workforce in Idaho. [25][26]

Illinois

Illinois recognizes the crucial role of medical preceptors in addressing healthcare workforce shortages and offers tax incentives to encourage their participation. Through the Illinois Income Tax Act, the state provides an income tax credit specifically for community-based faculty preceptors. The credit amount is outlined in the legislation, and it goes into effect immediately upon implementation. These tax incentives aim to attract and retain qualified medical professionals to serve as preceptors, contributing to the training and development of future healthcare providers. By leveraging these incentives, Illinois is taking proactive measures to strengthen its healthcare workforce and ensure quality patient care. [27][28]

Indiana

Indiana recognizes the vital role of medical preceptors in addressing healthcare workforce shortages and offers tax incentives to attract and retain qualified professionals. One of the incentives provided is a refundable tax credit for individuals who serve as nursing preceptors. This credit allows taxpayers to receive a $1,000 credit against their adjusted gross income tax liability. By offering these incentives, Indiana aims to encourage medical professionals to serve as preceptors, contributing to the training and development of future healthcare providers. These tax incentives play a crucial role in strengthening Indiana’s healthcare workforce and ensuring quality patient care. [29][30]

Iowa

In Iowa, there is a recognition of the valuable role played by medical preceptors in addressing healthcare workforce shortages. To attract and retain qualified professionals, the state offers tax incentives for nursing preceptors. A proposal has been made to establish a $1,000 Iowa income tax credit for nursing preceptors. This initiative aims to encourage healthcare professionals to serve as preceptors, providing guidance and mentorship to nursing students. By offering these tax incentives, Iowa aims to strengthen its healthcare workforce and ensure the availability of skilled healthcare providers for the future. These incentives provide a win-win situation, benefiting both the preceptors and the healthcare system as a whole. [31][32]

Kansas

Kansas recognizes the crucial role played by medical preceptors in addressing healthcare workforce shortages. To attract and retain qualified professionals, the state offers tax incentives for nursing preceptors. By providing these incentives, Kansas aims to encourage healthcare professionals to serve as preceptors, guiding and mentoring nursing students. These tax incentives help strengthen the healthcare workforce in the state and ensure the availability of skilled healthcare providers for the future. Kansas understands the importance of investing in the development of healthcare professionals and supports their invaluable contribution to the education and training of future healthcare providers. [33][34]

Kentucky

Kentucky recognizes the important role that medical preceptors play in addressing healthcare workforce shortages and ensuring the availability of skilled healthcare providers in the future. To attract and retain qualified professionals, the state offers tax incentives for nursing preceptors. These incentives aim to encourage healthcare professionals to serve as preceptors, guiding and mentoring nursing students. By providing tax credits for their valuable contribution, Kentucky supports the development of healthcare professionals and strengthens the healthcare workforce in the state. This initiative not only benefits aspiring nurses but also promotes the overall quality of healthcare in Kentucky. [35][36]

Louisiana

Louisiana recognizes the vital role that medical preceptors play in shaping the future healthcare workforce and addressing the state’s healthcare needs. To attract and support qualified professionals in serving as preceptors, Louisiana offers tax incentives as a way to show appreciation for their time and dedication. These incentives aim to encourage healthcare practitioners to mentor and guide aspiring medical students. By providing tax credits and other benefits, Louisiana aims to strengthen the healthcare workforce and improve the overall quality of healthcare in the state. This initiative not only benefits the students but also helps increase access to quality healthcare for all Louisiana residents. [37][38]

Maine

Maine recognizes the crucial role that healthcare preceptors play in shaping the future of the healthcare workforce. To attract and support qualified professionals in serving as preceptors, the state offers tax incentives as a way to show appreciation for their time and dedication. The Maine Legislature enacted a health care preceptor tax credit, providing a state income tax credit for licensed physicians, physician assistants, and advanced practice registered nurses who serve as preceptors for medical students. These tax incentives aim to encourage healthcare practitioners to mentor and guide aspiring medical professionals, ultimately strengthening the quality of healthcare in the state. [39][40]

Tax incentives in Ohio

In Ohio, the state government has taken a notable step to support medical preceptors through financial incentives. Eligible federally qualified health centers have the opportunity to collect up to $50,000 annually for precepting students. This substantial incentive aims to encourage experienced professionals to mentor the next generation of healthcare providers, ensuring students receive quality, hands-on clinical training that is essential for their future careers in medicine.

Michigan

Michigan has also recognized the importance of medical preceptors in healthcare education and has introduced measures to support this vital role. Forward-thinking senators, with an understanding of the critical need for clinical educators, proposed Senate Bills offering up to $5,000 in state income tax credit. This is available to individuals who choose to work as clinical preceptors for physician, physician assistant, or advanced practice nursing programs. This incentive not only bolsters support for current medical practitioners in Michigan but also serves to attract new talent to the state’s robust healthcare education system. [1][2][3][4]

Pennsylvania

In Pennsylvania, the state acknowledges the contribution of medical preceptors through specific financial encouragements. While the state does not currently offer a direct tax credit program like some of its neighbors, Pennsylvania’s efforts to recognize and support medical preceptors are demonstrated through various grants and subsidies. These financial aids help to ease the burden on healthcare professionals who dedicate their time and expertise to the training of students and are aimed at ensuring the consistent quality of healthcare education and services across the state.

Maryland

Moving to Maryland, the state leads with a proactive approach to addressing health care workforce shortages through the Preceptor Tax Credit Programs. The Maryland Department of Health administers these programs as a means to augment the number of healthcare professionals graduating and entering the workforce. Qualifying medical, nurse practitioner, physician assistant, registered nurse, and licensed practical nurse student preceptors can earn tax credits. These fiscal gestures form an integral part of Maryland’s strategy not only to incentivize experienced medical personnel to mentor aspiring practitioners but also to retain and attract a robust health professional workforce within the state. [5][6][7][8]

Massachusetts Preceptors

In Massachusetts, efforts to enhance the education of medical professionals are significantly recognized through the adoption of preceptor tax incentives. These incentives aim to motivate experienced clinicians to mentor medical, nurse practitioner, and physician assistant students in their formative years. Similar to versions in Maryland and Colorado, Massachusetts values the impact that quality precepting has on patient care, especially in underserved regions. By providing a tax incentive of $1,000 per student and a potential annual maximum of $10,000, Massachusetts not only acknowledges the contribution of these healthcare mentors but also reinforces its commitment to extending healthcare access and nurturing a future workforce equipped to handle primary care duties effectively. [9][10]

Minnesota

In the landscape of healthcare education, Minnesota recognizes the indispensable role of medical preceptors. The proposed SF 3563 legislation seeks to bolster their efforts by offering tax credits to physicians and healthcare clinicians who mentor the upcoming generations of healthcare professionals. Despite a lack of enactment thus far, the strong advocacy by groups like the MAFP underscores the deep appreciation of preceptors’ uncompensated dedication. By potentially adopting preceptor tax incentives, Minnesota stands to join select states in affirming the value of hands-on clinical training, which not only enriches student learning but also ensures a well-prepared workforce for the future of Minnesota’s healthcare system. [11][12]

Mississippi

In Mississippi, legislation to implement preceptor tax incentives has yet to gain traction. While states like Georgia, Maryland, and Colorado have successfully established tax credits for preceptors to strengthen primary care in rural and underserved areas, Mississippi continues to evaluate such initiatives. Supporters of preceptor tax credits argue that such incentives would help Mississippi address its own healthcare workforce shortages by encouraging experienced practitioners to mentor the next generation of healthcare professionals. The anticipation is that with enough advocacy and demonstration of success in other states, Mississippi may soon join the efforts to provide meaningful tax benefits to preceptors who are integral to the hands-on training of medical students. [13][14]

Missouri

In Missouri, medical professionals who choose to serve as preceptors can look forward to receiving state support through tax incentives. Such initiatives recognize the pivotal role that clinical mentors play in strengthening healthcare provision, particularly in underserved regions. Through Senate Bill 801, the state proposes an income tax credit for qualified faculty preceptors. The creation of the Medical Preceptor Fund shows a commitment to bolster the training of future physician assistants and physicians. Missouri’s approach is forward-looking: it motivates experienced medical personnel to invest their time in the next generation, ensuring that the state’s residents have access to well-trained healthcare providers in the years to come. [15][16]

Montana

In Montana, healthcare professionals who give their time and expertise to train the next generation can benefit from the state’s support through tax incentives. This legislative decision, solidified by HB 496, acknowledges the role that medical preceptors play in healthcare education. By providing a personal income tax credit to eligible preceptors, Montana aims to encourage more healthcare experts to engage in educating students in clinical settings. This tax incentive exemplifies Montana’s commitment to addressing healthcare provider shortages and reinforcing the overall quality of medical services across the state. It’s a meaningful step towards sustaining a robust healthcare system with well-prepared professionals ready to serve the needs of Montanans. [17][18]

Nebraska

In Nebraska, the legislature recognizes the critical need for healthcare education and the vital role that preceptors play in this process. As a response, the state has introduced income tax credits for preceptors who operate in areas with healthcare workforce shortages. By volunteering as a preceptor for approved programs, these dedicated healthcare professionals can receive a tax credit, which is both a token of appreciation and an incentive to fortify the training of new medical personnel. Notably, Nebraska’s Advantage Act (LB 312) makes this possible, thus promoting the retention and support of a robust future healthcare workforce within the state’s borders. [19][20]

Nevada

In Nevada, the government has taken steps to remedy the shortage of primary care providers through the institution of tax incentives for medical preceptors. These incentives are designed to entice healthcare professionals to mentor and share their invaluable practical knowledge with the next generation of medical students. By offering an income tax credit to these generous professionals, Nevada acknowledges their indispensable contribution to healthcare education. The tax credit applies to those involved in clinically supervising students for a specified number of hours, reflecting the state’s commitment to both support the continuing education of medical professionals and ensure that residents have access to quality primary healthcare services. [21][22]

New Hampshire

In New Hampshire, the state government recognizes the crucial role that medical preceptors play in shaping the future of healthcare. To encourage more healthcare professionals to become preceptors, the state offers tax incentives as a way to show appreciation for their invaluable contribution. Through the Education Tax Credit Program, businesses and enterprises can make monetary donations to approved scholarship organizations. In return, these organizations provide tax credits against the Business Profits Tax, Business Enterprise Tax, or Interest and Dividends Tax, equal to 85% of the donation. This program not only supports the education of medical students but also strengthens the pipeline of healthcare professionals, ensuring that residents have access to quality primary healthcare services. By providing these tax incentives, New Hampshire demonstrates its commitment to fostering mentorship opportunities and investing in the future of healthcare. [23][24]

New Jersey

New Jersey recognizes the critical role that medical preceptors play in shaping the future of healthcare. The state offers tax incentives as a way to show appreciation for their invaluable contribution. Through the Education Tax Credit Program, businesses and enterprises can make monetary donations to approved scholarship organizations. In return, these organizations provide tax credits against the Business Profits Tax, Business Enterprise Tax, or Interest and Dividends Tax, equal to 85% of the donation. This program not only supports the education of medical students but also strengthens the pipeline of healthcare professionals, ensuring that residents have access to quality primary healthcare services. By providing these tax incentives, New Jersey demonstrates its commitment to fostering mentorship opportunities and investing in the future of healthcare. [25][26]

New Mexico

New Mexico recognizes the crucial role that medical preceptors play in addressing healthcare workforce shortages, especially in rural areas. To encourage and support these preceptors, the state has implemented the Health Care Preceptor Income Tax Credit Program.

This program allows eligible healthcare practitioners who serve as preceptors in approved preceptorship programs to claim a tax credit against their income tax liability. To qualify for the credit, preceptors must have completed a preceptorship of at least four weeks in New Mexico.

By offering this tax incentive, New Mexico aims to attract and retain healthcare professionals in areas where there is a shortage of providers. It not only benefits the preceptors by reducing their tax burden but also helps to strengthen the healthcare workforce and improve healthcare access for residents in underserved areas.

If you are a healthcare practitioner interested in becoming a preceptor in New Mexico, be sure to consult the state’s tax preparer or the relevant state loan program offices for further information and assistance in claiming this tax credit. [27][28]

New York

New York State recognizes the valuable role that preceptors play in training and mentoring future healthcare professionals. To incentivize participation in clinical training programs, the state has introduced the Clinical Preceptorship Personal Income Tax Credit.

Under this program, preceptor clinicians who provide instruction as part of a clinical preceptorship in both community and in-patient facilities are eligible to claim a tax credit. The credit is calculated at a rate of $1000 for every 100 hours of community-based instruction, with a maximum credit of $3000.

By offering this tax incentive, New York aims to attract qualified preceptors and address the shortage of clinical training sites. This will not only benefit the preceptors by reducing their tax burden but also contribute to the development of a highly skilled healthcare workforce.

If you are a preceptor in New York, be sure to take advantage of this tax credit by consulting with a tax preparer or relevant state loan program offices for further guidance on claiming your deserved incentive. [29][30]

North Carolina

North Carolina recognizes the crucial role that preceptors play in training and mentoring future healthcare professionals. To incentivize their participation, the state has introduced tax incentives for medical preceptors. Under this program, qualified preceptors can receive tax credits based on the number of hours they dedicate to precepting.

The North Carolina preceptor tax incentives aim to support the recruitment and retention of preceptors by reducing their tax burden. The specific details and eligibility criteria for these incentives can vary, so it is important for preceptors to consult with a tax preparer or relevant state agencies for further guidance.

By offering these tax incentives, North Carolina hopes to address the shortage of clinical training sites and contribute to the development of a highly skilled healthcare workforce. Preceptors in North Carolina should take advantage of these incentives as a way to recognize their contributions and support their professional development. [31][32]

North Dakota

In North Dakota, the state recognizes the importance of medical preceptors in training and mentoring future healthcare professionals. To encourage their participation, North Dakota has implemented tax incentives for medical preceptors. These incentives aim to alleviate the tax burden on qualified preceptors based on the hours they dedicate to precepting.

By offering tax incentives, North Dakota aims to address the shortage of clinical training sites and contribute to the development of a highly skilled healthcare workforce. However, the specific details and eligibility criteria for these incentives may vary, so it is advisable for preceptors to consult with a tax preparer or relevant state agencies for further guidance.

It is essential for preceptors in North Dakota to take advantage of these incentives as a way to recognize their contributions and support their professional development. By participating in the program, preceptors can not only contribute to the growth of future healthcare professionals but also benefit from tax relief for their valuable services. [33][34]

Oklahoma

Like many other states, Oklahoma recognizes the crucial role that medical preceptors play in training and mentoring future healthcare professionals. To encourage physicians to serve as preceptors, the state has implemented tax incentives.

According to a report from Oklahoma Now, tax incentives are being offered to physicians who serve as preceptors to medical students. The exact details of these incentives may vary, but they aim to provide financial relief to medical preceptors based on the number of hours they dedicate to precepting.

By offering these tax incentives, Oklahoma aims to address the primary care shortage and contribute to the development of a skilled healthcare workforce. This program not only recognizes the valuable contributions of preceptors but also supports their professional development.

Physicians in Oklahoma should take advantage of these tax incentives to both make a positive impact on future healthcare professionals and receive financial relief for their services. Consulting with a tax preparer or relevant state agencies can provide further guidance on eligibility criteria and claiming these incentives.

Overall, Oklahoma’s preceptor tax incentives are a valuable initiative that benefits both medical preceptors and the healthcare industry as a whole. [35][36]

Oregon

Oregon recognizes the crucial role that medical preceptors play in training and mentoring future healthcare professionals. To incentivize physicians to serve as preceptors, the state has implemented the Oregon Rural Practitioner Tax Credit Program. This program offers personal income tax credits to dentists, physicians, podiatrists, nurse practitioners, physician assistants, nurse anesthetists, optometrists, and volunteer EMS who practice in eligible rural areas of Oregon.

The eligibility criteria for this tax credit program include being a dentist, physician, podiatrist, nurse practitioner, physician assistant, nurse anesthetist, optometrist, or volunteer EMS. The program aims to support healthcare professionals who practice in rural areas, addressing the shortage of healthcare in these areas.

By participating in the Oregon Rural Practitioner Tax Credit Program, medical preceptors not only contribute to the development of a skilled healthcare workforce but also receive financial relief through tax incentives. This initiative benefits both medical preceptors and the healthcare industry in Oregon as a whole. [37][38]

Rhode Island Preceptors

In Rhode Island, the importance of medical preceptors in training and mentoring future healthcare professionals is recognized. To encourage physicians to serve as preceptors, the state offers tax incentives through the Rhode Island Preceptor Tax Credit Program. This program provides personal income tax credits to dentists, physicians, podiatrists, nurse practitioners, physician assistants, nurse anesthetists, optometrists, and volunteer EMS who practice in eligible areas of Rhode Island.

The eligibility criteria for this program include being a healthcare professional mentioned above and practicing in specific areas designated as high-need or underserved. By participating in the Rhode Island Preceptor Tax Credit Program, medical preceptors not only contribute to the growth of a skilled healthcare workforce but also receive financial relief through tax incentives.

These tax incentives help attract more healthcare professionals to areas where their services are most needed, addressing the healthcare shortage in these areas and ultimately benefiting the overall healthcare industry in Rhode Island. [39][40]

Tennessee

In Tennessee, a robust strategy to tackle physician shortages, particularly in primary care, revolves around encouraging established medical professionals to mentor the next generation. The state’s efforts to incentivize physicians to become preceptors for medical students come as a beacon of hope. By taking on the role of mentors, these preceptors play a critical role in shaping the future of healthcare.

Tennessee’s approach includes a combination of financial perks designed to make the role of a medical preceptor attractive for physicians. Tax incentives play a significant part in this, with the state offering a range of benefits, which includes but is not limited to tax credits, job training reimbursements, and grants for those doctors who invest time in training up-and-coming medical professionals. These incentives do not only reward current preceptors but also serve as a nudge for others to join the effort, effectively expanding Tennessee’s medical education workforce and addressing the physician shortage. [1][2][3][4]

Texas

The state of Texas recognizes the indispensable role that medical preceptors play in educating future healthcare providers. To encourage more licensed practitioners to commit to this cause, Texas has taken strides to implement tax incentive programs that lighten the financial burden on these volunteer educators. These incentives serve not only as a reward for their dedication but also as a strategic move to combat the looming healthcare personnel shortage by ensuring a well-trained medical workforce across the state.

Similar to the initiatives seen in other states, Texas provides a set of financial incentives to medical preceptors. These include income tax credits for those who provide crucial on-site training and mentorship to students pursuing careers as osteopathic practitioners, advanced practice nurses, or physician assistants. Although Texas as a whole does not levy state income tax, these incentives can come in various forms that benefit the preceptors for their unpaid contributions, adhering to the state’s commitment to fostering an environment conducive to medical education and practice. By doing so, Texas continues to invest in its healthcare system, enhancing access to quality care for its residents. [5][6][7][8]

Utah

The conversation around tax incentives for medical preceptors shifts as we move state by state. In Utah, with an ever-growing need to fill the ranks of capable healthcare professionals, the state has acknowledged the salience of providing inducements to medical preceptors. These educators are paramount to the robustness of the future medical workforce. Utah has eyed tax incentives as an effective carrot to dangle before potential preceptors. By reducing their tax burden, these seasoned professionals are more likely to volunteer their time and expertise to mentor the next generation. Precise details on the forms these incentives take may vary, and the debate within the Utah legislature continues, with focus on how best to structure these incentives to ensure they are enticing enough to make a significant impact. [9][10]

Vermont

The attention now turns to Vermont, where the state has also implemented initiatives to encourage medical professionals to contribute to the educational landscape of healthcare. Following a similar vein as Utah, Vermont effectively provides incentives aimed at medical preceptors, with the intent of fostering a sustainable and well-equipped medical workforce. Although there’s only one continuing care retirement community (CCRC) in Vermont, the state sets an example by offering a distinctive tax credit to these key figures in medical education. Preceptors who are instrumental in coaching medical students are eligible for a $500 tax credit. This incentive is part of a broader effort to alleviate the stress on healthcare systems by ensuring a continuous influx of trained professionals. With such measures, Vermont hopes to entice expert medical practitioners to join their education ranks, thereby fortifying the state’s healthcare services. [11][12]

South Carolina

In South Carolina, the value of investing in future healthcare professionals is recognized through the implementation of preceptor tax incentives. The state offers a nonrefundable income tax credit to licensed physicians, nurse practitioners, physician assistants, and nurse midwives, who serve as preceptors and provide clinical training to medical, physician assistant, or nurse practitioner students. This is an earnest attempt to bolster the primary care workforce in the state, particularly in rural and underserved areas that experience a severe healthcare professional shortage.

The tax credit amounts to $1,000 for every 120 hours of direct supervision and instruction that a preceptor provides to a student. This thoughtful initiative is a way to say ‘thank you’ to healthcare professionals contributing to the teaching and development of the upcoming generation, ensuring that the high quality of medical care in South Carolina is upheld and continuously improved. [13][14]

South Dakota

In South Dakota, recognizing the effort of medical preceptors comes in the form of tax incentives, a gesture showing the state’s commitment to health education. These incentives are designed to encourage experienced physicians and other qualifying healthcare professionals to take on the role of mentorship to medical students, and in the process, help mitigate the shortage of healthcare providers, especially in rural areas.

Much like its counterparts, Maryland and Colorado, South Dakota offers a significant tax credit to preceptors. They aim to attract more physicians into the educational aspect of healthcare, ensuring students gain indispensable hands-on experience. Though details on South Dakota’s preceptor incentives may differ, the notion of a $1,000 tax credit establishes a beneficial support system for both the preceptors and the medical community at large. It’s a well-structured approach to promote quality in primary care training and improve access to care across the state. [15][16]

Virginia

In Virginia, the state’s General Assembly has taken proactive steps to acknowledge and support the integral role of medical preceptors. They comprehend the challenges that arise in healthcare, especially with shortages of primary care providers. In 2021, the Nurse Preceptor Incentive Program (NPIP) was established, backed by $500,000 in funding, to offer financial incentives to practitioners who offer their time and expertise to mentor advanced practice registered nurse (APRN) students without prior compensation.

This initiative underscores Virginia’s dedication to enhancing healthcare access, addressing vital primary care shortages, managing chronic diseases, and tackling mental health crises. The allocated funds serve as a rewarding investment into the quality of clinical education for APRNs, ensuring that preceptors are recognized for their essential contributions to the future of healthcare in Virginia. This program is a beacon of support, reflecting the increasing trend of states like Georgia, Maryland, Colorado, South Carolina, and Alabama, which also incentivize preceptor mentorship through tax benefits. [17][18]

Washington

In Washington, the quest to enhance the healthcare system has led to the implementation of tax incentives for medical preceptors. Recognizing the acute need for more primary care providers, Washington, like its sister states, has sought to encourage experienced healthcare professionals to take up the role of preceptors. By guiding the next generation of practitioners, these mentors play a pivotal role in shaping patient care standards.

While the specifics of Washington’s preceptor tax incentives continue to evolve, the aim is to provide a tangible reward for those who dedicate their time and expertise to clinical education. These incentives act as an acknowledgment of the invaluable service that preceptors offer, not only to their direct mentees but to the broader Washington community. The establishment of such tax benefits is a testament to the state’s commitment to addressing the ongoing challenges within the healthcare sector by supporting its current and future workforce. [19][20]

West Virginia

In West Virginia, addressing the shortage of clinical training sites has led to the introduction of preceptor tax incentives. Support from the state legislature reflects an innovative approach to enhance healthcare education by mobilizing outpatient practices. Under the recently introduced HB3388, health sciences students, numbering over 13,750 in public institutions, are now assured valuable educational experiences thanks to the many preceptors who mentor them in various outpatient settings.

The careful limitation of eligible preceptors to those in outpatient care ensures that the investment is targeted and effective. Not to mention, the establishment of the Preceptor Tax Credit Incentive Fund creates a financial safeguard, aligning the available funds with the preceptor’s contributions to their mentees’ training. This prudent management ensures that the incentives are sustainable, rewarding preceptors and simultaneously enriching West Virginia’s healthcare landscape for years to come. [21][22]

Wisconsin

In an effort to address the shortage of clinical training sites and enhance healthcare education, Wisconsin has implemented preceptor tax incentives. This innovative approach aims to mobilize outpatient practices and ensure valuable educational experiences for health sciences students in public institutions.

Under the newly introduced legislation, healthcare professionals who serve as preceptors to students can benefit from tax incentives. This initiative not only rewards preceptors for their valuable contribution to student training but also helps enrich the healthcare landscape in Wisconsin.

Similar to other states such as Georgia, Maryland, and Colorado, Wisconsin recognizes the importance of tax incentives in increasing access to care and bolstering primary care training. By targeting these incentives specifically to preceptors in outpatient care settings, the state ensures that the investment is targeted and effective.

The establishment of the Preceptor Tax Credit Incentive Fund further emphasizes Wisconsin’s commitment to ensuring sustainable incentives and rewarding preceptors for their significant role in shaping the next generation of healthcare professionals. [23][24]

Wyoming

Wyoming recognizes the critical role that preceptors play in shaping the next generation of healthcare professionals. To address the shortage of clinical training sites and enhance healthcare education, the state has implemented preceptor tax incentives.

Under these incentives, healthcare professionals who serve as preceptors to students can benefit from tax credits. This not only rewards preceptors for their valuable contribution to student training but also helps enrich the healthcare landscape in Wyoming. The tax credits provide an additional incentive for healthcare professionals to take on the role of preceptors and support the education and development of future healthcare providers.

Similar to other states, Wyoming acknowledges the importance of tax incentives in increasing access to care and bolstering primary care training. By offering these incentives specifically to preceptors, the state ensures that the investment is targeted and effective. This initiative demonstrates Wyoming’s commitment to fostering a strong healthcare workforce and improving patient care across the state. [25][26]

Chase DiMarco

Chase DiMarco

Chase is an MS, MBA-HA, and MD/Ph.D-candidate. He is the Founder and educator at MedEd University, host of the Medical Mnemonist podcast and Rounds to Residency podcast, co-author of Read This Before Medical School, and is the CEO of FindARotation clinical rotations platform.

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