PRECEPT Nurses Act
- Bill Number
- H.R. 392
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-01-14: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-03T08:07:03Z
AI-Generated Summary
Summary of H.R. 392: PRECEPT Nurses Act
Purpose
The legislation aims to encourage more experienced nurses to mentor and train nursing students and new nurses by providing a financial incentive through the tax system. It specifically targets areas with shortages of health professionals to help build the nursing workforce in underserved communities.
Key Provisions
- Tax Credit Amount and Eligibility: Eligible nurse preceptors can claim a $2,000 tax credit against their federal income tax for each qualifying year. To qualify, an individual must serve at least 200 hours as a preceptor in a community designated as a health professional shortage area (as defined under federal public health law). The IRS will annually publish a list of these designated areas on its website.
- Definition of Nurse Preceptor: A nurse preceptor is a licensed registered nurse or other health care provider who supervises and provides hands-on training, instruction, and mentoring to:
- Nursing students or advanced practice nursing students enrolled in an approved school of nursing.
- Newly hired licensed nurses (within their first 6 months of employment).
The training must align with standards set by the relevant state nursing board, state agency, or agreement between a school and clinical site.
- Reporting and Certification Requirements: To claim the credit, preceptors must obtain a certification confirming their 200 hours of service. This can come from:
- A partnering school of nursing (for student mentoring).
- The preceptor's clinical workplace (for new nurse training).
Multiple certifications from different sources can be combined to meet the 200-hour threshold.
- Duration and Effective Date: The credit applies to tax years beginning after December 31, 2025, and expires for tax years beginning after December 31, 2032 (a temporary 7-year program).
- Congressional Reporting: The Secretary of the Treasury must submit annual reports to specified congressional committees starting in 2026 through 2032. These reports will cover:
- Number of taxpayers claiming the credit.
- Total hours served and aggregated data on preceptorships.
- Geographic distribution of claimants.
- Other relevant details.
By June 30, 2033, an evaluation (in consultation with the Health Resources and Services Administration) will assess the credit's effectiveness in increasing the number of nurse preceptors nationwide.
Significant Changes to Existing Law
This bill amends the Internal Revenue Code of 1986 by adding a new section (25F) under the nonrefundable personal tax credits (Subpart A of Part IV of Subchapter A of Chapter 1). It introduces a novel, targeted credit specifically for nurse preceptorship services, which does not currently exist in tax law. A clerical update adds the new section to the code's table of contents.
Potential Impacts
- On Citizens: The credit could motivate more nurses to volunteer time for mentoring, potentially improving access to clinical training for students and new nurses in shortage areas. This may help address nursing shortages, leading to better healthcare services in rural or underserved regions, though the financial benefit is limited to $2,000 per year.
- On Government Agencies: The IRS will handle credit administration, including certifications and annual area designations, increasing administrative workload. The Treasury Department will produce reports and evaluations, requiring coordination with health agencies like the Health Resources and Services Administration. The program may reduce federal tax revenue by the total credits claimed (estimated costs not specified in the bill).
- On International Relations: No direct impacts, as the bill focuses on domestic healthcare workforce development.
Main Stakeholders Affected
- Nurse Preceptors: Licensed registered nurses and health care providers who mentor others; they benefit directly from the tax credit but must meet hour and certification requirements.
- Nursing Students and New Nurses: Gain more training opportunities, especially in shortage areas, potentially leading to better-prepared professionals.
- Academic Institutions and Clinical Sites: Schools of nursing and healthcare workplaces provide certifications and partner in preceptorships; they may see increased participation from preceptors.
- Taxpayers and Broader Public: Indirectly affected through reduced tax revenue funding the credits; communities in shortage areas may benefit from a stronger nursing workforce.
- Government Entities: IRS (administration), Treasury Department (reporting), and congressional committees (oversight).
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The credit is a standard tax incentive under Congress's authority to regulate taxation (Article I, Section 8 of the U.S. Constitution). It requires verifiable certifications to prevent fraud, aligning with IRS enforcement practices. The temporary sunset clause (ending in 2032) allows for future congressional review based on the mandated evaluation.
- Constitutional Implications: None significant; it does not infringe on states' rights, as preceptorship standards defer to state nursing boards, and it promotes public health without mandating participation.
- Political Implications: The bill addresses ongoing national concerns about nursing shortages, particularly post-pandemic, by incentivizing workforce development in underserved areas. As a bipartisan introduction (with cosponsors from both parties), it reflects cross-aisle support for healthcare policy. The reporting requirements ensure accountability, potentially influencing future extensions or expansions of similar incentives.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Kiggans, Jennifer A. [R-VA-2]
Cosponsors (26)
Rep. Tenney, Claudia [R-NY-24], Rep. Joyce, David P. [R-OH-14], Rep. Costa, Jim [D-CA-21], Rep. Omar, Ilhan [D-MN-5], Rep. Fields, Cleo [D-LA-6], Rep. Davids, Sharice [D-KS-3], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Goldman, Craig A. [R-TX-12], Rep. Bell, Wesley [D-MO-1], Rep. Thanedar, Shri [D-MI-13], Rep. Riley, Josh [D-NY-19], Rep. Tokuda, Jill N. [D-HI-2], Rep. Lee, Susie [D-NV-3], Rep. Thompson, Bennie G. [D-MS-2], Rep. Tlaib, Rashida [D-MI-12], Rep. Harder, Josh [D-CA-9], Rep. Schmidt, Derek [R-KS-2], Rep. Gillen, Laura [D-NY-4], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Bacon, Don [R-NE-2], Rep. Budzinski, Nikki [D-IL-13], Rep. Titus, Dina [D-NV-1], Rep. Gottheimer, Josh [D-NJ-5], Rep. Balint, Becca [D-VT-At Large], Rep. Whitesides, George [D-CA-27], Rep. Craig, Angie [D-MN-2]
Recent Actions
- 2025-01-14: Referred to the House Committee on Ways and Means.
- 2025-01-14: Introduced in House
- 2025-01-14: Introduced in House
Bill Versions
- Providing Real-world Education and Clinical Experience by Precepting Tomorrow’s Nurses Act — issued 2025-01-14 — PDF (7 pages)