HB280 Alabama 2022 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

Regular Session 2022

Title

Taxation, Preceptor Tax Incentive Program, established, income tax credit incentives provided for certain medical students

Summary

HB280 creates the Preceptor Tax Incentive Program in Alabama to offer tax credits to unpaid clinical preceptors teaching in rural or underserved areas to help address primary care shortages.

What This Bill Does

The bill establishes a new Preceptor Tax Incentive Program. It provides tax credits for unpaid clinical preceptors who train students in certain health professions: $500 per 160-hour rotation for physicians, dentists, and optometrists (up to $6,000 per year); and $425 per 160-hour rotation for physician assistants, nurse practitioners, nurse midwives, and nurse anesthetists (up to $5,100 per year). Preceptors may claim credits for up to 12 rotations per year and must be registered with the Alabama Statewide Area Health Education Center Program Office and certify they received no monetary compensation for training. Credits are nonrefundable, cannot exceed the taxpayer’s liability, and the program is administered by the ASHEC Office. The credit starts with the 2022 tax year and becomes law a few months after passage.

Who It Affects

• Group 1: Unpaid community-based physicians, dentists, or optometrists who precept students; they could receive a $500 credit per rotation, up to $6,000 per year, for up to 12 rotations, if they receive no compensation and are properly registered.
• Group 2: Unpaid community-based physician assistants, nurse practitioners, nurse midwives, or nurse anesthetists who precept students; they could receive a $425 credit per rotation, up to $5,100 per year, for up to 12 rotations, under the same registration and no-compensation requirements.

Key Provisions

• Establishes the Preceptor Tax Incentive Program to provide income tax credits for certain medical students training in rural or underserved counties.
• Credit amounts: $500 per 160-hour rotation for physicians, dentists, and optometrists; $425 per 160-hour rotation for physician assistants, nurse practitioners, nurse midwives, and nurse anesthetists; annual caps of $6,000 and $5,100 respectively.
• Rotation limit: up to 12 clinical preceptorships per calendar year for any one preceptor.
• Eligibility requirements: preceptors must be unpaid, physically located in Alabama, and registered with the Alabama Statewide Area Health Education Center Program Office; cannot receive monetary compensation for training.
• Administration and certification: the ASHEC Program Office administers the program and certifies rotations for applicable professions.
• Tax filing rules: credits are claimed on the taxpayer’s Alabama income tax return for the year the rotation was completed; must certify no monetary payment was received for training and provide supporting documentation.
• Limitations: total credits for a tax year cannot exceed the taxpayer’s income tax liability; no carryback or forward of unused credits.
• Effective date: begins for the 2022 tax year; becomes law on the first day of the third month after passage/approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation