SF 391 (LSB 1784SV (2) 91)

SENATE FILE 391

BY  COMMITTEE ON HEALTH AND HUMAN SERVICES

(SUCCESSOR TO SSB 1082)

A BILL FOR

An Act creating an advanced registered nurse practitioner preceptor tax credit available against the individual income tax, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  422.12F  Advanced registered nurse preceptor tax credit.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Clinical practicum” means a course of study designed for the preparation of becoming an advanced registered nurse practitioner, involving clinical preceptorships for practical application of previously studied theory.
   b.  “Clinical preceptorship” means a mentoring experience under the direction of a nursing program where a preceptor is used to provide a clinical learning experience for a student enrolled in the nursing program.
   c.  “Nursing program” means a program approved by the board of nursing pursuant to section 152.5.
   d.  “Preceptor” means an advanced registered nurse practitioner who is a resident and is currently licensed as a registered nurse under chapter 152 or chapter 152E, and who is licensed by the board as an advanced registered nurse practitioner.
   e.  “Student” means a resident enrolled in a nursing program fulfilling a required clinical practicum through a clinical preceptorship.
   2.  To be eligible for the tax credit under this section for a tax year, a preceptor must provide uncompensated instruction and supervision during the required student clinical preceptorship, be employed at the clinical facility where the preceptorship occurs, be qualified for the preceptor role, be selected by the nursing program in collaboration with the clinical facility to participate in the clinical preceptorship, and have at least one year of experience in the preceptor role.
   3.  The taxes imposed under this subchapter, less credits allowed under section 422.12, shall be reduced by an advanced registered nurse preceptor tax credit equal to one thousand dollars per clinical preceptorship where at least one hundred hours of clinical learning experience is provided, not to exceed two thousand dollars in the aggregate.
   4.  Any credit in excess of tax liability is refundable. In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final and completed return credited to the tax liability for the following tax year.
   5.  The preceptor shall be responsible for accurate documentation of the student’s experience during the clinical preceptorship including the name of the student, the name of the nursing program, the dates and times instruction and supervision were provided to the student, and the year of the student’s expected graduation from the program.
   6.  Beginning November 1, 2028, and each November 1 thereafter, the department shall submit to the general assembly a report describing the activities of the tax credit for the most recent tax year for which the tax credit was available. The report shall, at a minimum, include the amount of tax credits claimed in the most recent tax year, the locations where a preceptor provided uncompensated instruction and supervision, the number of students supervised by the preceptor, the number of hours of clinical learning experiences were provided by the preceptor, and any other information the department deems necessary.
   7.  The department shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 2.  APPLICABILITY.  This Act applies to tax years beginning on or after January 1, 2026.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates an advanced registered nurse practitioner preceptor tax credit available against the individual income tax.
   The bill defines preceptor to mean an advanced registered nurse practitioner who is a resident and who is currently licensed as a registered nurse under Code chapter 152 or Code chapter 152E, and who is licensed by the board as an advanced registered nurse practitioner.
   The bill defines clinical preceptorship to mean a mentoring experience under the direction of a nursing program where a preceptor is used to provide a clinical learning experience for a student who is a resident enrolled in the nursing program.
   In order to be eligible for the tax credit under the bill, a preceptor must provide uncompensated instruction and supervision during a clinical preceptorship, be employed at the clinical facility where the preceptorship occurs, be selected by the nursing program in collaboration with the clinical facility to participate in the clinical preceptorship, and have at least one year of experience in the preceptor role.
   The amount of the tax credit equals $1,000 per clinical preceptorship where at least 100 hours of clinical learning experience is provided, not to exceed $2,000 in the aggregate. The bill specifies that the tax credit is refundable, and in lieu of a refund, the taxpayer may elect to have the overpayment shown on the taxpayer’s final, completed return credited to the tax liability for the following tax year. 
   The bill requires the preceptor to accurately document the student’s experience including the name of the student, the name of the nursing program, the hours of supervision, and the year of the student’s expected graduation.
   The bill requires the department of revenue to submit a report to the general assembly a report describing the activities of the tax credit for the most recent tax year for which the tax credit was available.
   The department of revenue is required to adopt rules to administer the bill.
   The bill applies to tax years beginning on or after January 1, 2026.