SB192 Alabama 2022 Session

Summary

Primary Sponsor

April WeaverSenator

Republican

Session

Regular Session 2022

Title

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

Summary

SB192 would create the Preceptor Tax Incentive Program in Alabama to provide income tax credits to unpaid clinical preceptors who train health professions students in rural or underserved areas.

What This Bill Does

It establishes the Preceptor Tax Incentive Program and defines key terms. It provides tax credits for unpaid clinical preceptorships: $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, with annual caps. Preceptors may claim up to 12 rotations per year, and credits cannot exceed the taxpayer's liability. Administration is handled by the Alabama Statewide Area Health Education Center Program Office, and credits require registration and documentation; the program aims to expand training in rural/underserved areas to help address primary care shortages.

Who It Affects

• Group 1: Community-based physicians, dentists, optometrists, physician assistants, nurse practitioners, nurse midwives, and nurse anesthetists in Alabama who supervise unpaid clinical rotations; they would be eligible to claim tax credits per rotation, up to annual caps, and must register with the AS-AHEC.
• Group 2: Health professions students and rural/underserved health care facilities in Alabama, who benefit indirectly through more training opportunities in underserved areas, supporting efforts to reduce primary care shortages.

Key Provisions

• Establishes the Preceptor Tax Incentive Program and defines terms like clinical preceptorship, community-based preceptor, and health professional shortage areas.
• Eligible preceptors are unpaid and include physicians, dentists, optometrists, physician assistants, nurse practitioners, nurse midwives, and nurse anesthetists operating in Alabama.
• Credits: $500 per 160-hour rotation for physicians, dentists, and optometrists; $425 per 160-hour rotation for PAs, NPs, NMs, and CRNAs.
• Annual caps: up to $6,000 per year for the $500-per-rotation group; up to $5,100 per year for the $425-per-rotation group.
• Rotation limit: no more than 12 rotations per calendar year per individual.
• Administration and eligibility: Alabama Statewide Area Health Education Center Program Office administers the program, certifies rotations, and preceptors must register to participate.
• Tax filing requirements: credits claimed in the tax year the rotation is completed; must certify no monetary compensation for the training; must submit documentation to the Department of Revenue; credits cannot exceed the taxpayer's income tax liability.
• Effective date: 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