Income Tax Credit for Preceptors in Areas with Health Care Workforce Shortages

Based on our recent annual membership survey, 50% of those who responded indicated they serve as preceptors. Through Maryland’s Preceptor Tax Credit Program, Maryland physicians who serve as preceptors can receive a maximum credit of $10,000 annually. This preceptor tax incentive not only increases access to care in under-served areas, but it also helps strengthen primary care training.

This Program authorizes a credit against the State income tax for individuals who have served as a preceptor in certain preceptorship programs and work in certain areas of the State with a health care workforce shortage.

Preceptorship program means an organized system of clinical experience, that, for the purpose of attaining specified learning objectives, pairs either

1. a Medical student in a Maryland medical school with a licensed Physician who meets the qualifications as a preceptor, or
2. a Nurse Practitioner student enrolled in a nursing education program that is recognized by the State Board of Nursing with a Nurse Practitioner or licensed Physician who meets the qualifications as a preceptor.

• Physicians, Physician Assistants and Nurse Practitioners who provide preceptorship without compensation in an organized system of clinical experience for the purpose of attaining specified learning objectives.
• Be recognized as a preceptor by a liaison committee on a medical education accredited medical school or program recognized by the Board of Nursing.
• Act as a preceptor for a minimum of three rotations each consisting of 100 hours (a total of 300 preceptor hours within a taxable year) for medical students and nurse practitioner students.  
• Practice in an area identified as having a health care workforce shortage.

The list of eligible Physician programs is generated from the University of Maryland and Johns Hopkins University while the list of eligible NP programs are generated by the Board of Nursing.

• The credit certificate will be issued by MDH in the amount of $1000 for each student whom the Physician, Physician Assistant or Nurse Practitioner acted as a preceptor without compensation.
• The tax credit amount for individual preceptor for any taxable year may not exceed $10,000.
• The total amount of income tax credit certificates in total may not exceed $100,000 for any taxable year.