HB 1154 creates a new Indiana income tax credit for behavioral health professionals who serve as preceptors. A qualifying taxpayer may claim a $1,000 credit against state income tax liability if they provide an uncompensated preceptorship for at least 20 days during the taxable year. The bill defines eligible behavioral health professionals to include psychiatrists, nurses, occupational therapists, behavioral health and human services professionals, and psychologists, and it applies to taxable years beginning after December 31, 2025.
The bill also defines “preceptorship” as a mentoring experience in which the professional provides clinical instruction, training, and supervision to an individual completing clinical experience required for licensure under Indiana law. To claim the credit, the taxpayer must file it on the annual state tax return and provide any information the Department of Revenue requires. The credit is nonrefundable, may not be carried back, and may not be assigned to another taxpayer.
Impact
HB 1154 would add a new chapter to Indiana Code chapter 6-3.1-43, creating a targeted tax incentive within the state individual income tax system. It would reduce state tax liability for eligible behavioral health professionals who supervise licensure candidates, but only up to $1,000 per taxpayer per year and only for tax years beginning after December 31, 2025. The bill would not create a refund mechanism or transferable credit, so its fiscal effect would be limited to reducing tax collections from qualifying filers rather than generating payments from the state.
Sentiment
The available context shows little recorded debate or formal vote history, so there is no evidence of strong public controversy in the materials provided. Based on the bill’s structure and caption, the measure appears to be generally supportive of behavioral health workforce development by rewarding professionals who mentor trainees. The tone of the bill is policy-oriented and incentive-based, suggesting a favorable posture toward addressing training and licensure pipeline needs in behavioral health.
Contention
No committee transcript or vote record is provided, so specific objections cannot be identified from the available materials. Potential points of contention, if raised, would likely involve the cost of the tax credit to state revenues, whether the $1,000 amount is sufficient to influence precepting behavior, and whether the eligibility rules are narrow enough to target the intended workforce. Another possible issue is administrative verification, since the Department of Revenue may require documentation to confirm that the taxpayer provided at least 20 days of qualifying preceptorship.