Appropriates $10 million to Department of Treasury for nurse preceptor tax credits.
Summary
S4034 creates a New Jersey gross income tax credit for qualified preceptors who supervise students in advanced practice nursing, certified nurse midwifery, or certified registered nurse anesthetist programs. A preceptor may claim $1,000 for each eligible student supervised during the taxable year, so long as the preceptor served as the primary supervisor for at least 100 clinical hours. The bill defines who may serve as a preceptor, requires certification by a faculty of record from an accredited New Jersey nursing school, and directs the Division of Taxation to review and approve applications on a first-come, first-served basis.
The program is capped at $10 million in annual tax credits, and the bill also appropriates up to $10 million from the General Fund to the Department of the Treasury to implement it. The credit is nonrefundable, cannot be carried forward, and may not reduce a taxpayer’s liability below zero. The measure would take effect immediately and apply to taxable years beginning on or after enactment.
Impact
The bill would amend and supplement New Jersey gross income tax law by adding a new tax credit mechanism for health care educators and clinical supervisors in advanced nursing fields. It would require the Division of Taxation and the State Treasurer to administer the credit, establish application and certification procedures, and adopt implementing regulations. The measure also creates a direct fiscal commitment from the General Fund, subject to the $10 million cap, and could reduce state revenue to the extent credits are claimed.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears supportive of expanding incentives for nursing education and clinical training. The bill is framed as a workforce-development measure intended to encourage experienced clinicians to serve as preceptors and help address training capacity for advanced practice nursing programs. No formal opposition is documented in the provided materials.
Contention
The main points of potential contention are fiscal cost, administrative complexity, and the distribution of benefits. Because the credit is capped at $10 million and awarded first-come, first-served, some may question whether the program will adequately reach all eligible preceptors or whether it will favor those able to apply earliest. Others may focus on whether a tax credit is the best way to support nursing education compared with direct grants or higher reimbursement, and whether the eligibility rules and certification requirements will be burdensome for schools, preceptors, and the Division of Taxation.