Overview

Title

To amend the Internal Revenue Code of 1986 to create a tax credit for nurse preceptors.

ELI5 AI

Imagine there's a plan to give nurses a special thank you gift: if they help teach and guide new nurses in places where there aren't enough doctors and nurses, they can get a $2,000 bonus on their taxes. This plan also uses leftover money meant for COVID emergencies to pay for these bonuses, but some people worry about how the money is being moved around and if it's all fair.

Summary AI

H.R. 10373, also known as the “Providing Real-World Education and Clinical Experience by Precepting Tomorrow’s Nurses Act” or the “PRECEPT Nurses Act,” proposes an amendment to the Internal Revenue Code of 1986 to create a $2,000 tax credit for eligible nurse preceptors. This credit is intended for nurse preceptors who serve at least 200 hours in health professional shortage areas, providing vital supervision and mentoring to nursing students, advanced practice registered nurses, or newly hired nurses. The act outlines specific requirements for the certification of service hours and includes a sunset provision set for the end of 2030. Additionally, it plans to fund the credit using unused COVID-19 relief funds and mandates annual reports and an evaluation to assess the credit's effectiveness in boosting the number of nurse preceptors.

Published

2024-12-11
Congress: 118
Session: 2
Chamber: HOUSE
Status: Introduced in House
Date: 2024-12-11
Package ID: BILLS-118hr10373ih

Bill Statistics

Size

Sections:
3
Words:
1,700
Pages:
9
Sentences:
38

Language

Nouns: 537
Verbs: 114
Adjectives: 97
Adverbs: 7
Numbers: 79
Entities: 131

Complexity

Average Token Length:
4.23
Average Sentence Length:
44.74
Token Entropy:
5.10
Readability (ARI):
24.37

AnalysisAI

General Summary of the Bill

H.R. 10373, introduced in the 118th Congress, proposes an amendment to the Internal Revenue Code of 1986. Its aim is to create a tax credit for nurse preceptors—those who mentor nursing students or newly hired nurses. The bill, known as the “PRECEPT Nurses Act,” seeks to offer eligible nurse preceptors a $2,000 tax credit if they work a minimum of 200 hours annually in designated health profession shortage areas. This incentive would be applicable from 2024 until 2030, and funding would come from repurposed, unused COVID-19 relief funds.

Summary of Significant Issues

The bill presents several potential issues that may affect its implementation and efficacy. Firstly, while offering a $2,000 tax credit might encourage nurses to become preceptors, there is no specified cap on total spending for this credit. This could lead to unforeseen financial implications if many nurses qualify.

Another concern centers around the definition of an "eligible nurse preceptor," specifically the requirement to work in a “health professional shortage area.” This could unnecessarily limit the number of preceptors able to benefit, thereby impacting the program's broader goal to alleviate nurse shortages.

Administrative challenges also arise from the certification requirements; preceptors need to obtain multiple certifications to prove their eligibility, which could deter participation due to the associated bureaucratic workload.

Additionally, the mechanism for funding the tax credit, which involves transferring expired and unused COVID-19 funds, may raise questions about transparency and fiscal responsibility, especially since decisions around these transfers rest heavily with the Secretary of the Treasury.

Impact on the Public Broadly

For the general public, this bill could play a part in addressing the persistent issue of healthcare professional shortages in underserved areas. By incentivizing experienced nurses to mentor newcomers, the bill aims not only to support nursing education but also to enhance care for communities lacking medical resources. If implemented effectively, it could improve access to quality healthcare in these critical regions.

However, effectiveness is contingent on the bill's ability to attract enough participants willing to meet the requirements in shortage areas. Also, without careful management, the funding strategy might invite public scrutiny over fiscal decisions, potentially affecting trust in governmental resource allocation.

Impact on Specific Stakeholders

Nurses and Nursing Institutions: The bill provides a financial incentive for nurses to participate in preceptorship programs, which could expand mentorship opportunities in underserved areas. For nursing institutions, meeting the certification requirements could involve extra administrative tasks, potentially placing an additional burden on their resources.

Students and Newly Hired Nurses: Aspiring nurses and those newly entering the field might benefit from enhanced training opportunities if the bill encourages more seasoned professionals to mentor them.

Fiscal Policymakers: The handling of unused COVID-19 funds could place policymakers under pressure to justify the use of these resources and ensure they align with public expectations and needs.

Healthcare Systems in Shortage Areas: These systems stand to gain from an increased pool of trained, mentored professionals, which could improve service delivery and patient outcomes. However, ensuring that preceptors find it feasible to invest the required hours in these challenging environments may require additional support measures.

Overall, while the bill aims to address critical aspects of healthcare and education, its success will depend on careful attention to financial planning, administrative efficiency, and clear communication strategies.

Financial Assessment

The proposed legislation H.R. 10373, also known as the “PRECEPT Nurses Act,” involves several financial elements related to the creation of a tax credit and the repurposing of existing funds. This commentary addresses how these financial components are structured within the bill and their potential implications.

$2,000 Tax Credit

The primary financial initiative in this bill is the introduction of a $2,000 tax credit for eligible nurse preceptors. This credit aims to incentivize registered nurses to serve as preceptors, particularly in areas designated as health professional shortage areas. The bill specifies that nurse preceptors must complete a minimum of 200 hours of service to qualify for this credit. From a financial perspective, this measure could lead to substantial claims if a large number of nurses meet the eligibility requirements, affecting the federal budget without a clearly defined spending cap. This potential for significant expenditure underscores a concern about financial planning and budgeting, as mentioned in the identified issues.

Repurposing COVID-19 Relief Funds

To fund the tax credit, the bill proposes to utilize unused COVID-19 relief funds. Specifically, it instructs the Secretary of the Treasury to identify unobligated funds from various COVID-19 relief acts and transfer them to the general Treasury to offset the credit costs. Although this approach offers a source of funding without requiring new appropriations, it raises concerns over transparency and potential misallocation of funds. This mechanism for reallocating previously designated funds could face scrutiny, as it might be perceived as lacking public consensus and transparency, which are issues highlighted in the concerns.

Retrospective Financial Review

The bill dictates that the Secretary of the Treasury will assess the total amount of the credit after the close of each taxable year, creating a retrospective review process. While this may provide an accurate accounting of funds utilized, it can also lead to budgetary uncertainties, as the exact financial commitment is only determined post-factum. This could complicate financial planning and projections both for the government and participating entities, aligning with concerns about financial predictability and planning.

Administration and Certification Costs

The process for claiming the tax credit requires nurse preceptors to obtain certifications from relevant academic institutions or clinical sites. This requirement introduces potential administrative burdens that could inadvertently act as barriers to accessing the credit. Administrative costs and complexities could further affect the overall financial dynamics of the bill, as managing these certifications necessitates resources both from the institutions involved and potentially from the tax administration systems, which might not have been thoroughly estimated or considered.

Effectiveness and Evaluation

The bill includes provisions for annual reporting and a final evaluation by the Secretary of the Treasury, in consultation with the Health Resources and Services Administration, to assess the credit's effectiveness. The evaluation's findings could influence future financial allocations or adjustments to the program. However, the effectiveness of the credit as a tool for increasing the number of nurse preceptors directly impacts the return on investment for the allocated funds. An effective tax credit could lead to improved healthcare staffing, justifying the financial expenditure. Conversely, if the credit does not significantly bolster preceptorship, the financial outlay might be challenged as inefficient use of funds.

In summary, while the “PRECEPT Nurses Act” seeks to fund nurse preceptors through an innovative tax credit backed by repurposed COVID-19 relief funds, it presents several financial and operational challenges. These include potential overspending, controversial funding mechanisms, and administrative burdens that could impede the bill's successful implementation and financial viability.

Issues

  • The provision allowing a $2,000 tax credit for eligible nurse preceptors may lead to substantial spending if a large number qualify, without a clear cap on total spending. This issue is significant for financial planning and budgeting. (Section 2, SEC. 25F)

  • The mechanism for repurposing expired and unused COVID-19 funding to cover the credit may be controversial, perceived as lacking transparency and public consensus. The authority given to the Secretary for fund transfer could lead to perceptions of misallocation. (Section 2, Funding)

  • The definition of 'eligible nurse preceptor' requiring service in a 'health professional shortage area' might be too restrictive, potentially limiting the scope and effectiveness of the credit. This issue impacts the bill's efficacy in addressing nurse shortages. (Section 25F)

  • The requirement for multiple certifications to establish preceptorship hours could impose administrative burdens, potentially acting as a barrier to accessing the credit. This is a legal and operational issue that may affect the program's implementation. (Section 2, SEC. 25F(c))

  • The directive that the Secretary of the Treasury will determine the total amount of the credit after the taxable year suggests retrospective review, which might lead to budgetary uncertainties and challenges in financial planning. (Section 2, Funding)

  • The bill's language, particularly in the definitions section, is complex with numerous references to other sections and acts, posing understanding challenges. This could result in inconsistent applications and difficulty in bill interpretation. (Section 25F)

  • The mechanism for informing 'eligible nurse preceptors' of their designation in shortage areas relies solely on IRS website, which might not be effective in ensuring widespread awareness. This communication issue could limit the credit's reach. (Section 25F)

  • The termination date of December 31, 2030, might cause abrupt cessation of benefits without considering the continuation of health professional shortages, suggesting a need for a rationale or evaluative mechanism before termination. (Section 25F)

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of the act establishes its official name as the "PRECEPT Nurses Act," which is short for "Providing Real-World Education and Clinical Experience by Precepting Tomorrow’s Nurses Act."

2. Credit for nurse preceptors Read Opens in new tab

Summary AI

The section introduces a tax credit for eligible nurse preceptors who mentor nursing students or newly hired nurses in health professional shortage areas. To qualify, the nurse preceptor must complete at least 200 hours per year of preceptorship, and the credit is available for taxable years from 2024 to 2030, funded by transferring unused COVID-19 relief funds.

Money References

  • “(a) In general.—In the case of any eligible nurse preceptor, there shall be allowed as a credit against the tax imposed by this chapter for any taxable year an amount equal to $2,000.

25F. Credit for nurse preceptors Read Opens in new tab

Summary AI

In this section, eligible nurse preceptors can receive a $2,000 tax credit if they serve at least 200 hours in a designated health profession shortage area. This section also defines terms like "nurse preceptor" and sets out certification requirements to qualify for the credit, which is valid until the end of 2030.

Money References

  • (a) In general.—In the case of any eligible nurse preceptor, there shall be allowed as a credit against the tax imposed by this chapter for any taxable year an amount equal to $2,000.