HB133 Alabama 2023 Session

Summary

Primary Sponsor

Neil RaffertyRepresentative

Democrat

Session

Regular Session 2023

Title

Relating to state income tax; to establish the Preceptor Tax Incentive Program to provide income tax credit incentives for certain medical students who train in rural and underserved counties in the state.

Summary

HB133 creates the Preceptor Tax Incentive Program to give Alabama state income tax credits to unpaid clinical preceptors who supervise rural training rotations for certain health professions students.

What This Bill Does

It establishes tax credits for unpaid clinical preceptorships in Alabama, with $500 per 160-hour rotation for physicians, dentists, and optometrists, and $425 per 160-hour rotation for advanced practice nurses, physician assistants, and related roles, up to annual caps. Credits are only for rotations in medically underserved rural areas and must be certified by the Alabama Statewide Area Health Education Center (ASHEC) before they can be claimed, and cannot exceed the taxpayer's liability or be carried forward. The program is administered by ASHEC, with requirements for documentation, annual reporting, and program evaluation; it also includes needs assessments, sunset provisions for 2031, and potential Department of Revenue rulemaking.

Who It Affects

• Community-based physicians, dentists, optometrists, physician assistants, anesthesia assistants, and advanced practice nurses who serve as unpaid preceptors and could receive a tax credit for each eligible rotation.
• Health professions students (medical, dental, optometry, PA, anesthesia, NP, CNM, CRNA) training in Alabama, whose clinical rotations in rural/undercounted areas are intended to address primary care shortages and qualify for the credit.

Key Provisions

• Creates the Preceptor Tax Incentive Program to provide state income tax credits for eligible unpaid clinical preceptorships conducted in Alabama.
• Credit amounts: $500 per 160-hour rotation for physician, dentist, or optometrist preceptors; $425 per 160-hour rotation for physician assistant, advanced practice nurse, nurse anesthetist, and nurse practitioner preceptors.
• Annual credit caps: up to $6,000 per year for physician/dentist/optometrist preceptors; up to $5,100 per year for PA/NP/CNM/CRNA preceptors; maximum of 12 rotations per calendar year for an individual.
• Rotations must occur in medically underserved rural areas and be certified as eligible by the ASHEC; no monetary payment to the preceptor for the training year.
• Preceptors claim credits on their Alabama state income tax return for the year the rotation was completed; credits cannot exceed tax liability and are not refundable or transferable to other years.
• ASHEC issues credit certificates and the Department of Revenue requires supporting documentation for credits; automatic denial if documents are not provided.
• Program administration by ASHEC; annual reporting to the Governor and legislative leaders; the program includes needs assessments and is evaluated for effectiveness.
• Department of Revenue may adopt implementing rules; the act repeals on September 29, 2031 unless extended.
• Effective date: begins on the first day of the third month after passage.

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