To Create The Preceptor Tax Incentive Program; And To Provide Incentives For Certain Medical Or Counseling Professionals To Train Certain Students Who Are Learning To Become Medical Or Counseling Professionals.
HB1670 creates the “Preceptor Tax Incentive Program” in Arkansas income tax law. The bill is designed to encourage licensed health care and counseling professionals to supervise students and residents in required preceptorship training by offering refundable income tax credits. It applies to physicians, nurses, advanced practice registered nurses, registered nurse practitioners, physician assistants, licensed professional counselors, licensed associate counselors, and licensed marriage and family therapists who serve as faculty preceptors for qualifying students or residents.
The bill distinguishes between uncompensated and compensated faculty preceptors. An uncompensated preceptor may claim a refundable credit of $1,000 for each resident, medical student, physician assistant student, counseling student, or nursing student trained during the calendar year, up to $10,000 per year. A compensated preceptor who is paid as an independent contractor for the rotation may claim a refundable credit equal to the compensation received, capped at $6,000 per taxpayer. The credits apply to tax years beginning on or after January 1, 2025.
HB1670 amends Arkansas Code Title 26, Chapter 51 by adding a new subchapter establishing a state income tax credit program for preceptors. It affects state tax liability by creating refundable credits, meaning eligible taxpayers can receive a refund if the credit exceeds their tax owed. The bill primarily impacts licensed medical, nursing, physician assistant, and counseling professionals who provide required clinical training, as well as the students and residents who depend on those training placements to complete accredited programs.
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text and caption, the measure appears to be framed as a workforce-development and training-incentive bill, with an overall pro-healthcare and pro-education policy orientation. The structure of the credits suggests an intent to reward both unpaid and paid preceptorship service.
The main policy questions likely concern the cost of refundable tax credits to the state, the $10,000 annual cap for uncompensated preceptors, and the $6,000 cap for compensated preceptors. Another possible point of contention is whether the incentive is broad enough, since it covers only specified professions and only training that is part of accredited programs and qualifying preceptorship rotations of at least 160 hours. No specific objections or amendments are documented in the provided record.