HB 390 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, providing for preceptor tax deduction.

PRINTER'S NO.     355

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 390
                                               Session of
                                                 2025

     INTRODUCED BY KHAN, KOSIEROWSKI, TAKAC, MAYES, PASHINSKI,
        FLEMING, VENKAT, GIRAL, FREEMAN, HILL-EVANS, HANBIDGE, OTTEN,
        CEPEDA-FREYTIZ, INGLIS, CERRATO, WAXMAN, KAZEEM, CIRESI,
        SANCHEZ, DONAHUE, HOHENSTEIN, D. WILLIAMS, SHUSTERMAN AND
        GREEN, JANUARY 28, 2025

     REFERRED TO COMMITTEE ON FINANCE, JANUARY 28, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in personal income tax, providing for preceptor
11      tax deduction.
12      The General Assembly of the Commonwealth of Pennsylvania
13   hereby enacts as follows:
14      Section 1.    The act of March 4, 1971 (P.L.6, No.2), known as
15   the Tax Reform Code of 1971, is amended by adding a section to
16   read:
17      Section 304.3.    Preceptor Tax Deduction.--(a)     A taxpayer
18   subject to the tax imposed by this article who is a health care
19   provider engaged as a preceptor shall be entitled to a deduction
20   of one thousand dollars ($1,000) from the taxable income of the
21   taxpayer for a volunteer-based supervised clinical training
 1   rotation supervised by the taxpayer, regardless of the number of
 2   volunteer-based supervised clinical training rotations
 3   supervised by the taxpayer.
 4      (b)     The Preceptor Certification Committee is established
 5   within the department. The following apply:
 6      (1)     The committee shall be composed of representatives of:
 7      (i)     The Department of Health.
 8      (ii)     The State Board of Medicine.
 9      (iii)     The State Board of Nursing.
10      (2)     The committee shall develop and implement a plan for
11   certifying applications for a tax deduction under this section,
12   including:
13      (i)     Developing a process to ensure that requests for
14   certification are reviewed and verifications are processed no
15   later than thirty days following the close of each calendar
16   year.
17      (ii)     Developing the documentation process for the committee
18   to certify a preceptor for the tax deduction. The documentation
19   to be collected shall include all of the following:
20      (A)     The preceptor's name, address, place of practice and
21   license number.
22      (B)     The dates and hours of volunteer-based supervised
23   clinical training rotations per eligible student.
24      (C)     Attestation that the preceptor is uncompensated for the
25   volunteer-based supervised clinical training rotation.
26      (D)     Other information deemed necessary by the committee.
27      (3)     The committee shall:
28      (i)     Maintain records of the names, addresses and license
29   numbers of the taxpayers claiming a deduction under this
30   section.

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 1      (ii)     Certify the number of volunteer-based supervised
 2   clinical training rotations that each taxpayer conducted by
 3   verifying all of the following:
 4      (A)    That the taxpayer meets the requirements to serve as a
 5   preceptor.
 6      (B)    The number of hours that the taxpayer spent supervising
 7   an eligible student in each volunteer-based supervised clinical
 8   training rotation.
 9      (C)    That the eligible student was enrolled in an academic
10   program approved by the State Board of Nursing or State Board of
11   Medicine.
12      (D)    That the taxpayer was uncompensated for each rotation.
13      (iii)     Upon each determination approving a deduction under
14   this section, issue a certificate to the taxpayer certifying the
15   deduction for the taxable year.
16      (4)    Application for a deduction under this section may not
17   be submitted for certification prior to the supervised clinical
18   training rotation being performed.
19      (5)    Members of the committee shall be immune from civil
20   liability for any official act, decision or omission performed
21   for the purpose for which the committee was established, except
22   for any act, decision or omission that constitutes gross
23   negligence or willful misconduct.
24      (c)    A taxpayer who receives a certificate in accordance with
25   subsection (b)(3)(iii) shall file the certificate with the
26   taxpayer's tax return with the department.
27      (d)    If the deduction allowed under this section is greater
28   than the amount of tax due, no refund or carryover credit shall
29   be allowed.
30      (e)    As used in this section, the following words and phrases

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 1   shall have the meanings given to them in this subsection unless
 2   the context clearly indicates otherwise:
 3      "Academic program."    An academic degree granting program or
 4   graduate medical education program.
 5      "Committee."   The Preceptor Certification Committee
 6   established under subsection (b).
 7      "Eligible student."    An advanced practice registered nurse
 8   student, nurse anesthesia student, medical student, physician
 9   assistant student or registered nurse student who is enrolled in
10   an academic program.
11      "Health care provider."     A physician or osteopathic
12   physician, advanced practice registered nurse, nurse
13   anesthetist, physician assistant or registered nurse who holds a
14   Pennsylvania license and maintains a professional primary care
15   practice in this Commonwealth.
16      "Preceptor."   A health care provider who is engaged in a
17   volunteer-based supervised clinical training rotation.
18      "Primary care."     The principal point of continuing care for
19   patients provided by a health care provider, including health
20   promotion, disease prevention, health maintenance, counseling,
21   patient education, diagnosis and treatment of acute and chronic
22   illnesses and coordination of other specialist care that the
23   patients may need.
24      "Volunteer-based supervised clinical training rotation."     An
25   uncompensated period of supervised clinical training of an
26   eligible student that totals at least eighty hours of
27   supervisory time annually, in which a preceptor provides
28   personalized instruction, training and supervision to an
29   eligible student to enable the eligible student to obtain an
30   eligible professional degree or training certificate.

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1     Section 2.    This act shall take effect in 60 days.




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