In response to a shortage of primary care professionals across the state, the Georgia legislature recently made changes to the tax code to further incentivize students and professionals in the area. HB 287, which took effect on July 1, 2019, removes income tax deductions for certain physicians serving as community-based faculty physicians – while creating new tax credits at the same time.
Who gets the new income tax credit?
Known as the Preceptor Tax Incentive Program, the new law creates an income tax credit for taxpayers who provide uncompensated training to medical students and are:
- Licensed physicians
- Advanced practice registered nurses
- Physician’s assistants
The credit also applies to those who provide training for advanced practice RN students and physician assistant students.
How much is the tax credit worth?
Volunteer physician faculty can apply for a credit of up to $8,500 per year as reimbursement for their teaching time. This is good news for teaching physicians as well as medical schools like the Medical College of Georgia that rely on volunteer faculty to ensure students get the training they need to enter the field.
Close attention to tax credits and deductions essential looking ahead
With all the changes to both federal and state tax laws in the last year, it is important to stay on top of what deductions and credits you qualify for. Working with professionals experienced in tax law as well as tax preparation can help physicians take advantage of the new rules while providing valuable teaching time to their professional community.