SB186 Alabama 2023 Session

Summary

Primary Sponsor

April WeaverSenator

Republican

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

SB186 would create the Preceptor Tax Incentive Program in Alabama, offering income tax credits to unpaid clinical preceptors who train students in rural and underserved counties to help address primary care shortages.

What This Bill Does

It provides tax credits for unpaid clinical preceptorship rotations in Alabama, paying $500 per 160-hour rotation for physicians, dentists, and optometrists, and $425 per 160-hour rotation for physician assistants, nurse practitioners, nurse midwives, and nurse anesthetists. There are annual credit limits ($6,000 for physicians/dentists/optometrists; $5,100 for PAs/NPs/CNMs/CRNAs) and a maximum of 12 rotations per calendar year per category. The program is administered by the Alabama Statewide Area Health Education Center Program Office and requires registration of preceptors to be eligible. Credits can be claimed on the state income tax return in the year the rotation is completed, must document no monetary compensation received for training, and cannot exceed the taxpayer’s liability or be carried to other years.

Who It Affects

• Unpaid community-based physicians, dentists, optometrists, physician assistants, nurse practitioners, nurse midwives, and nurse anesthetists who precept students in Alabama; they could receive a tax credit for each 160-hour rotation, up to annual limits.
• Health profession students and training programs (medicine, dentistry, optometry, PA, NP, CNM, CRNA) located in rural or underserved areas, who benefit indirectly by having more unpaid preceptorship opportunities available.
• Alabama taxpayers with state income tax liability, since the credit reduces tax payable but cannot exceed liability and is nonrefundable.
• Alabama Statewide Area Health Education Center Program Office, which administers the program and certifies rotations for eligible programs.

Key Provisions

• Creates the Preceptor Tax Incentive Program to encourage unpaid clinical preceptorships in rural and underserved areas.
• Defines qualifying clinical preceptorship and community-based preceptors, including physicians, dentists, optometrists, PAs, NPs, CNMs, and CRNAs.
• Sets eligible training programs (medicine, dentistry, optometry, PA, NP, CNM, CRNA) located in Alabama and located in designated rural or underserved areas.
• Provides per-rotation tax credits: $500 for physicians, dentists, and optometrists; $425 for PAs, NPs, CNMs, and CRNAs, for each 160-hour rotation.
• Imposes annual credit caps: $6,000 per year for physicians/dentists/optometrists; $5,100 per year for PAs/NPs/CNMs/CRNAs; and a maximum of 12 rotations per category per calendar year.
• Requires preceptors to be registered with the Alabama Statewide Area Health Education Center Program Office to be eligible.
• Administers the program and certifies rotations through the ASHEC Program Office on behalf of eligible programs.
• Requires preceptors to claim the credit on their state tax return for the year of rotation, certify no monetary compensation was received, and submit supporting documentation to the Department of Revenue.
• Credits cannot exceed the taxpayer’s income tax liability and are not refundable or transferable to other years.
• Effective date: the act takes effect on the first day of the third month following passage and approval.

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