Senate Committee Passes Preceptor Tax Credit Bill

March 17, 2022

The Senate Tax Committee passed SF3563 (Sen. Greg Clausen-DFL, Apple Valley) regarding a temporary refundable income tax credit for preceptors. 

The bill would allow physicians and other healthcare providers who serve as preceptors for a health profession student or medical resident to qualify for a tax credit equal to $5,000.  

Most preceptors work voluntarily and are rarely compensated. Given the valuable role they play in offering clinical training to future healthcare workers, this bill would offer some level of incentive for their work. Clausen noted the bill would address the current bottleneck for healthcare workers who have completed off-site training and are seeking clinical training. 

MMA member Emily Onello, MD, an assistant professor in the Department of Family Medicine and BioBehavioral Health at the University of Minnesota Medical School, testified in support of the bill. Onello noted that “preceptors often do this work without compensation because they see the value in it.” She went on to say that this bill “will help recruit physicians to recruit others ensuring we have a well-trained healthcare workforce in the future.” 

SF3563 was laid over for inclusion in a Senate tax omnibus bill. Its companion, HF 4152, has not yet received a hearing in the House.