Establishes a clinical preceptorship personal income tax credit for certain health care professionals who provide preceptor instruction to students studying to be a health care professional.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2230
SPONSOR: Gunther
 
TITLE OF BILL:
An act to amend the tax law, in relation to establishing a personal
income tax credit for preceptor clinicians who provide preceptor
instruction; and providing for the repeal of such provisions upon the
expiration thereof
 
PURPOSE:
This bill would establish a clinical preceptorship personal income tax
credit for health care professionals who provide preceptor instruction
to students.
 
SUMMARY OF PROVISIONS:
Section one amends section 606 of the tax law to establish a clinical
preceptorship credit. A taxpayer who is a preceptor clinician who
provides preceptor instruction as part of a clinical preceptorship shall
be allowed a credit of $1,000 for each 100 hours of such preceptor
instruction; provided that the credit shall not exceed $3,000 during any
taxable year. Subdivision 2 establishes the following definitions:
A term "preceptor clinician" means a (i) a physician licensed pursuant
to article 131 of the education law, (ii) physician assistance licensed
pursuant to article 131-b, (iii) specialist assistant registered pursu-
ant to article 131-c, (iv) certified registered nurse anesthetist certi-
fied by the education department, (v) registered professional nurse
licensed pursuant to section 6905 of the education law, (vi) nurse prac-
titioner certified pursuant to section 6910 of the education law, (vii)
clinical nurse specialist certified pursuant to section 6911 of the
education law, or (viii) midwife licensed pursuant to article 141 of the
education law, who without provision of any form of compensation there-
fore, provides a clinical preceptorship or preceptorships including, not
limited to, both community and in-patient facilities, during the taxable
year.
A "clinical preceptorship" means a preceptorship for a student enrolled
in a New York state based educational program approved pursuant to title
8 of the education law to become a physician, physician assistant,
specialist assistant, certified registered nurse anesthetist, registered
professional nurse, nurse practitioners, clinical nurse specialist or
midwife, and which preceptorship provides preceptor instruction in fami-
ly medicine, internal medicine, pediatrics, obstetrics and gynecology,
emergency medicine, psychiatry or general surgery under the supervision
of a preceptor clinician.
Section two establishes the effective date.
 
JUSTIFICATION:
Preceptorships provide students a bridge between classroom education and
clinical hands-on training. Experienced clinicians act as preceptors to
provide students with intense first-hand training in their designated
health setting, an essential component of clinical professional develop-
ment. This enhanced learning experience equips students with the neces-
sary tools to allow them to provide effective care once they graduate
and enter the workforce. Unfortunately, there is a substantial shortage
of qualified preceptors in the state. The time requirement of a precep-
tor is substantial, and some preceptors have begun to charge insti-
tutions between $250-$999 per rotation for their services. New York
institutions are unable to afford this cost, or compete with offshore
medical schools and health programs, which pay preceptors to take their
students.
In October of 2016, Pace University's College of Health Professions
conducted a survey of both public and private institutions on the state
of college and university clinical affiliations in New York. A survey of
thirty-three institutions found that 75% of them were having difficulty
securing and maintaining clinical placements, and 93% of institutions
cited "lack of interest by practitioners" as the primary challenge in
securing placements. In November of 2016, Pace University's College of
Health Professions conducted a national survey finding similar results.
This bill seeks to make New York State competitive in the market for
qualified preceptors by creating a clinical preceptorship personal
income tax credit, which will incentivize participation in clinical
training programs. The credit would be available to preceptor clinicians
who provide instruction as part of a clinical preceptorship in both
community and in-patient facilities. The credit would be for $1,000 for
each 100 hours of community-based instruction, with a maximum credit of
$3,000. The credit would only be available to those clinicians that do
not receive any form of compensation for providing clinical preceptor-
ships. New York State provides some of the best clinical educational
opportunities in the country, and this bill will provide a mechanism to
continue this tradition in the competitive global market.
 
LEGISLATIVE HISTORY:
2021-22: A285 referred to Ways & Means/S4229 referred to Budget & Reven-
ue
2019-20: A 3704 referred to Ways & Means/S4033A referred to Budget &
Revenue
2017-18: A6820B referred to Ways & Means
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on January 1, 2024 and shall expire and be deemed repealed
December 31, 2028.
STATE OF NEW YORK
________________________________________________________________________
2230
2023-2024 Regular Sessions
IN ASSEMBLY
January 25, 2023
___________
Introduced by M. of A. GUNTHER, JONES, LUPARDO, McDONOUGH, SMITH, BRABE-
NEC, JOYNER, SIMON, JEAN-PIERRE, GONZALEZ-ROJAS, FORREST -- read once
and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a personal
income tax credit for preceptor clinicians who provide preceptor
instruction; and providing for the repeal of such provisions upon the
expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (ooo) to read as follows:
3 (ooo) Clinical preceptorship credit. (1) General. A taxpayer who is a
4 preceptor clinician who provides preceptor instruction as part of a
5 clinical preceptorship shall be allowed a credit of one thousand dollars
6 for each one hundred hours of such preceptor instruction; provided that
7 the credit allowed pursuant to this subsection shall not exceed three
8 thousand dollars during any taxable year.
9 (2) Definitions. As used in this subsection:
10 (A) The term "preceptor clinician" means a (i) physician licensed
11 pursuant to article one hundred thirty-one of the education law, (ii)
12 physician assistant licensed pursuant to article one hundred
13 thirty-one-B of the education law, (iii) specialist assistant registered
14 pursuant to article one hundred thirty-one-C of the education law, (iv)
15 certified registered nurse anesthetist certified by the education
16 department, (v) registered professional nurse licensed pursuant to
17 section sixty-nine hundred five of the education law, (vi) nurse practi-
18 tioner certified pursuant to section sixty-nine hundred ten of the
19 education law, (vii) clinical nurse specialist certified pursuant to
20 section sixty-nine hundred eleven of the education law, or (viii)
21 midwife licensed pursuant to article one hundred forty of the education
22 law, who, without the provision of any form of compensation therefor,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06403-01-3
A. 2230 2
1 provides a clinical preceptorship or preceptorships including, but not
2 limited to, both community and in-patient facilities, during the taxable
3 year.
4 (B) The term "clinical preceptorship" means a preceptorship for a
5 student enrolled in a New York state based educational program approved
6 pursuant to title eight of the education law to become a physician,
7 physician assistant, specialist assistant, certified registered nurse
8 anesthetist, registered professional nurse, nurse practitioner, clinical
9 nurse specialist or midwife, and which preceptorship provides preceptor
10 instruction in family medicine, internal medicine, pediatrics, obstet-
11 rics and gynecology, emergency medicine, psychiatry or general surgery
12 under the supervision of a preceptor clinician.
13 (3) Application of credit. In no event shall the amount of the credit
14 provided by this subsection exceed the taxpayer's tax for the taxable
15 year. If the amount of the credit and carryovers of such credit allowed
16 under this subsection exceeds such tax, the excess as well as any part
17 of the credit or carryovers of such credit, or both may be carried over
18 to the following year or years.
19 (4) Aggregate amount. The aggregate amount of tax credits allowed
20 pursuant to the authority of this subsection shall be three million
21 dollars each year during the period two thousand twenty-four through two
22 thousand twenty-eight. If the total amount of allocated credits applied
23 for in any particular year exceeds the aggregate amount of tax credit
24 allowed for such year, such excess shall be treated as having been
25 applied for on the first day of the subsequent year.
26 § 2. The commissioner of education along with the commissioner of the
27 department of taxation and finance are authorized to promulgate rules
28 and regulations without being subject to the state administrative proce-
29 dure act in regard to the issuance of a certification identifying the
30 name of a preceptor clinician and the hours spent as an instructor and a
31 report necessary to effectuate the clinical preceptorship credit program
32 under this act. Notwithstanding any provision of law to the contrary,
33 the commissioner of education shall permit the commissioner of the
34 department of taxation and finance or proper officers of such department
35 to inspect the certificate or report filed and issued by the commission-
36 er of education for the purposes of administering the clinical precep-
37 torship tax credit pursuant to subsection (ooo) of section 606 of the
38 tax law.
39 § 3. This act shall take effect immediately and shall apply to taxable
40 years beginning on January 1, 2024 and shall expire and be deemed
41 repealed December 31, 2028.