Nurse Corps Tax Parity Act of 2025
- Bill Number
- H.R. 3145
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-05-01: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-04-21T08:06:20Z
AI-Generated Summary
Purpose
The Nurse Corps Tax Parity Act of 2025 aims to provide tax relief for participants in the Nurse Corps Scholarship Program by excluding certain scholarship and loan repayment payments from taxable income. This encourages more individuals to join the program, addressing shortages in the nursing workforce.
Key Provisions
- Exclusion from Gross Income: Amends Section 108(f)(4) of the Internal Revenue Code (IRC) to include payments under Section 846 of the Public Health Service Act (which covers the Nurse Corps Scholarship Program) as non-taxable, similar to exclusions for other public health service loan repayments.
- Qualified Scholarships: Amends Section 117(c)(2)(A) of the IRC to treat scholarships from the Nurse Corps program as "qualified," meaning they are not included in gross income (taxable income before deductions).
- Effective Date: Applies to amounts received in taxable years beginning after the date of enactment.
Significant Changes to Existing Law
- Expands existing tax exclusions in the IRC, which previously applied only to certain Public Health Service programs (e.g., under Section 338B(g) for the National Health Service Corps). Now, it explicitly includes the Nurse Corps program under Section 846, ensuring parity in tax treatment across similar federal health workforce initiatives.
- No changes to the underlying scholarship or loan repayment programs themselves; the focus is solely on their tax status.
Potential Impacts
- On Citizens: Participating nurses and nursing students will retain more of their scholarship or loan repayment funds, as these will no longer be subject to federal income tax. This could reduce financial barriers to entering or staying in the nursing field, potentially increasing program participation and improving healthcare access in underserved areas.
- On Government Agencies: The Department of Health and Human Services (HHS), which administers the Nurse Corps program, may see higher enrollment without tax disincentives. The Internal Revenue Service (IRS) will need to update guidance and forms to reflect the new exclusions, but this is a minor administrative adjustment.
- On International Relations: No direct impact, as the bill focuses on domestic tax policy and U.S. healthcare workforce programs.
Main Stakeholders Affected
- Nurses and Nursing Students: Primary beneficiaries, gaining tax-free financial support for education and service commitments.
- Healthcare Providers and Underserved Communities: Indirectly benefit from a stronger nursing workforce, potentially improving care delivery in rural or low-income areas.
- Federal Agencies: HHS (program administrator) and IRS (tax enforcement), with streamlined tax treatment for participants.
- Taxpayers: Minor overall fiscal impact, as the exclusions reduce federal tax revenue but support public health goals.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns tax treatment across federal health scholarship programs, promoting consistency in the IRC without altering eligibility rules. No challenges to enforceability anticipated, as it builds on existing exclusions for similar programs.
- Constitutional: Neutral; involves standard congressional authority over taxation (Article I, Section 8) and does not infringe on individual rights or state powers.
- Political: Supports bipartisan efforts to bolster healthcare staffing amid ongoing shortages, potentially appealing to lawmakers focused on workforce development. Could set precedent for extending tax relief to other public service programs, influencing future budget and tax debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Fitzpatrick, Brian K. [R-PA-1]
Cosponsors (7)
Rep. Thompson, Mike [D-CA-4], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Neguse, Joe [D-CO-2], Rep. Vasquez, Gabe [D-NM-2], Rep. Vindman, Eugene Simon [D-VA-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Davids, Sharice [D-KS-3]
Recent Actions
- 2025-05-01: Referred to the House Committee on Ways and Means.
- 2025-05-01: Introduced in House
- 2025-05-01: Introduced in House
Bill Versions
- Nurse Corps Tax Parity Act of 2025 — issued 2025-05-01 — PDF (2 pages)