PRECEPT Nurses Act
- Sponsor
- Rep. Kiggans, Jennifer A. [R-VA-2]
- Committees
- Ways and Means Committee (primary)
- Last action
- Jan 14, 2025
Bottom line
The PRECEPT Nurses Act creates a $2,000 federal tax credit to encourage nurses to serve as preceptors in health professional shortage areas, aiming to bolster nursing education and workforce development.
What it actually does
This bill amends the Internal Revenue Code of 1986 to establish a new, temporary $2,000 tax credit for eligible nurse preceptors. To qualify, an individual must serve at least 200 hours during a taxable year as a nurse preceptor in a community designated as a health professional shortage area. The credit aims to incentivize experienced nurses to mentor nursing students, advanced practice students, or newly hired licensed nurses, particularly in underserved regions.
Proponents argue
Supporters argue that this bill will address critical shortages of nurse preceptors, especially in underserved areas, by providing a tangible financial incentive for experienced nurses to dedicate their time to training the next generation. They contend that this will improve the quality and availability of clinical education, ultimately strengthening the nursing workforce and patient care.
Opponents contend
Critics might argue that a $2,000 tax credit may not be a sufficient incentive to significantly increase the number of preceptors, given the substantial time commitment and responsibilities involved. Some may also raise concerns about the administrative burden of certification or the overall cost to federal revenue without a clear demonstration of effectiveness.
The bill is very concise and clearly written, making it easy for a reader to understand its provisions and implications quickly.
Section 2. (a) In General; Section 25F(a)
Establishment of $2,000 Tax Credit for Eligible Nurse Preceptors
This provision creates a new tax credit of $2,000 that an individual can claim against their federal income tax liability for any taxable year. This credit is specifically for individuals who meet the definition of an 'eligible nurse preceptor' for that year, providing a direct financial incentive for their service.
Supporters argue
Supporters contend that this direct financial incentive acknowledges the significant time and effort nurse preceptors invest in training, which is often uncompensated. This recognition is crucial for encouraging more experienced nurses to take on this vital role, thereby expanding clinical training opportunities.
Critics contend
Critics might argue that while beneficial, a $2,000 credit may not be substantial enough to overcome the disincentives (e.g., increased workload, lack of institutional support) that currently limit the number of preceptors. They may also question the cost-effectiveness of this approach compared to other potential investments in nursing education.
Tradeoffs
The provision balances the goal of incentivizing preceptors with the fiscal cost to the government. The chosen amount aims to be meaningful without being prohibitively expensive, but its effectiveness as a motivator is a key consideration.
Section 2. (b) Definitions; Section 25F(b)(1) and (2)
Eligibility Criteria for the Nurse Preceptor Tax Credit
This section defines who qualifies for the tax credit. An 'eligible nurse preceptor' must serve at least 200 hours annually as a 'nurse preceptor' in a community designated as a 'health professional shortage area' (HPSA). A 'nurse preceptor' is broadly defined as a licensed registered nurse or healthcare provider who offers supervision and experiential learning to nursing students, advanced practice students, or newly hired licensed nurses.
Section 2. (c) Reporting Requirement; Section 25F(c)
Certification Process for Claiming the Credit
To claim the tax credit, an eligible nurse preceptor must receive a certification confirming they have completed the minimum 200 hours of preceptorship. This certification can be issued by either the academic institution where a student is enrolled (for student preceptorships) or the clinical site where a newly hired nurse is being precepted. Multiple certifications can be combined to reach the required hours.
Section 2. (d) Termination; Section 25F(d)
Sunset Clause for the Tax Credit
This provision establishes a termination date for the nurse preceptor tax credit. The credit will not apply to any taxable year beginning after December 31, 2032. This means the program is temporary and will expire unless Congress takes further action to extend or make it permanent.
The definition of 'eligible nurse preceptor' and 'nurse preceptor' relies on cross-references to the Public Health Service Act for 'health professional shortage area' (section 332), 'healthcare provider' (section 3000(3)), and 'school of nursing' (section 801(2)).
Section 2. (b)(1) and (2) (Definitions)
Why it matters:This is standard legislative practice to avoid redundancy and ensure consistency with existing federal definitions. It's not necessarily evasive but adds a layer of complexity for a reader unfamiliar with these specific statutory references.
Case for: Using established definitions from the Public Health Service Act ensures consistency across federal programs and leverages existing frameworks for identifying areas of need and types of healthcare professionals.
Case against: For a casual reader, these cross-references make it harder to immediately grasp the full scope of who qualifies and where the preceptorship must occur, requiring additional research.
Estimated impact: Ensures the credit targets areas and professionals already identified by federal health agencies as priorities.
The amendments made by this section shall apply to taxable years beginning after December 31, 2025.
Section 2. (c) Effective Date
Why it matters:This is standard legislative practice for specifying when a new law takes effect. It's not evasive but can be missed if a reader doesn't read the entire bill carefully.
Case for: An effective date provides clarity for taxpayers and the IRS regarding when the new credit can first be claimed, allowing time for administrative setup and public awareness.
Case against: The delay in implementation means that the incentive will not be available immediately, potentially postponing its intended impact on nurse preceptorships for a year.
Estimated impact: The credit will not be available for the 2025 tax year, with the first eligible taxable year being 2026.
Requires the Secretary of the Treasury, in consultation with the Administrator of the Health Resources and Services Administration, to report annually to Congress on the credit's usage (number of taxpayers, hours served, geographic distribution) and to provide an evaluation by June 30, 2033, on its effectiveness in increasing nurse preceptors.
Section 2. (d) Report and Evaluation
Why it matters:This is standard practice for accountability and oversight provisions. While important for future policy decisions, it's not part of the direct tax code amendment, so it's placed separately.
Case for: This reporting and evaluation mechanism is crucial for evidence-based policymaking, allowing Congress to assess whether the credit is achieving its intended goals and to make informed decisions about its extension or modification.
Case against: Some might argue that the reporting requirements could be burdensome for the agencies involved, or that the evaluation timeline is too far in the future to allow for timely adjustments if the program is found to be ineffective.
Estimated impact: Provides critical data for assessing the program's success and informing future legislative action regarding the credit.