Pennsylvania 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.

Bill Text

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
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in personal income tax, providing for preceptor
tax deduction.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding a section to
read:
Section 304.3. Preceptor Tax Deduction.--(a) A taxpayer
subject to the tax imposed by this article who is a health care
provider engaged as a preceptor shall be entitled to a deduction
of one thousand dollars ($1,000) from the taxable income of the
taxpayer for a volunteer-based supervised clinical training
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rotation supervised by the taxpayer, regardless of the number of
volunteer-based supervised clinical training rotations
supervised by the taxpayer.
(b) The Preceptor Certification Committee is established
within the department. The following apply:
(1) The committee shall be composed of representatives of:
(i) The Department of Health.
(ii) The State Board of Medicine.
(iii) The State Board of Nursing.
(2) The committee shall develop and implement a plan for
certifying applications for a tax deduction under this section,
including:
(i) Developing a process to ensure that requests for
certification are reviewed and verifications are processed no
later than thirty days following the close of each calendar
year.
(ii) Developing the documentation process for the committee
to certify a preceptor for the tax deduction. The documentation
to be collected shall include all of the following:
(A) The preceptor's name, address, place of practice and
license number.
(B) The dates and hours of volunteer-based supervised
clinical training rotations per eligible student.
(C) Attestation that the preceptor is uncompensated for the
volunteer-based supervised clinical training rotation.
(D) Other information deemed necessary by the committee.
(3) The committee shall:
(i) Maintain records of the names, addresses and license
numbers of the taxpayers claiming a deduction under this
section.
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(ii) Certify the number of volunteer-based supervised
clinical training rotations that each taxpayer conducted by
verifying all of the following:
(A) That the taxpayer meets the requirements to serve as a
preceptor.
(B) The number of hours that the taxpayer spent supervising
an eligible student in each volunteer-based supervised clinical
training rotation.
(C) That the eligible student was enrolled in an academic
program approved by the State Board of Nursing or State Board of
Medicine.
(D) That the taxpayer was uncompensated for each rotation.
(iii) Upon each determination approving a deduction under
this section, issue a certificate to the taxpayer certifying the
deduction for the taxable year.
(4) Application for a deduction under this section may not
be submitted for certification prior to the supervised clinical
training rotation being performed.
(5) Members of the committee shall be immune from civil
liability for any official act, decision or omission performed
for the purpose for which the committee was established, except
for any act, decision or omission that constitutes gross
negligence or willful misconduct.
(c) A taxpayer who receives a certificate in accordance with
subsection (b)(3)(iii) shall file the certificate with the
taxpayer's tax return with the department.
(d) If the deduction allowed under this section is greater
than the amount of tax due, no refund or carryover credit shall
be allowed.
(e) As used in this section, the following words and phrases
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shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Academic program." An academic degree granting program or
graduate medical education program.
"Committee." The Preceptor Certification Committee
established under subsection (b).
"Eligible student." An advanced practi