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HB 1670

Modifies provisions relating to income tax on tips

2026 Regular Session Introduced by Phil Amato and 2 co-sponsors

Arkansas HB 1670 would create a Preceptor Tax Incentive Program offering up to $10,000 (uncompensated) or $6,000 (compensated) per year in tax credits to providers who supervise st

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Bill Summary · HB 1670

Summary — HB 1670

Note on sources and scope
- The materials supplied for “HB 1670” appear to include multiple, different bills from different jurisdictions (an Arkansas income‑tax bill creating a preceptor incentive, an Indiana “Veteran Empowerment” bill, an Illinois technical amendment, and an unrelated bond title about East Madison Water Association). The longest, complete statutory text provided corresponds to an Arkansas bill to create a “Preceptor Tax Incentive Program.” The summary below focuses on that Arkansas proposal and highlights other, separate items at the end.

Purpose and intent

The Arkansas HB 1670 (95th General Assembly, Regular Session 2025) would create a state income‑tax credit program — the “Preceptor Tax Incentive Program” — to encourage medical, nursing, physician‑assistant, and counseling professionals to provide required clinical preceptorship training (rotations) to students and residents in Arkansas.

Key provisions

  • New Subchapter 29 added to Arkansas Code Title 26, Chapter 51 (26‑51‑2901 et seq.), titled “Preceptor Tax Incentive Program.”
  • Definitions: covers “faculty preceptor” (physician, advanced practice nurse, registered nurse practitioner, physician assistant, licensed professional counselor or marriage & family therapist), and trainee categories (resident, medical student, nursing student, physician assistant student, counseling student). A “preceptorship rotation” must total at least 160 aggregate hours in the state.
  • Tax credit for uncompensated faculty preceptors (26‑51‑2903):
    • Uncompensated = performs preceptorship and receives no financial remuneration.
    • Credit: $1,000 per resident/student who participates during the calendar year.
    • Annual cap per taxpayer: $10,000.
    • Refundable: excess credit beyond tax liability is refundable.
  • Tax credit for compensated faculty preceptors (26‑51‑2904):
    • Compensated = paid as an independent contractor by the school for the preceptorship.
    • Credit equals the compensation received for the preceptorship, up to $6,000 per taxpayer.
    • Refundable: excess credit is refundable.
  • Effective date: Section 1 (the tax credit provisions) effective for tax years beginning on or after January 1, 2025.

Who would be affected

  • Beneficiaries: physicians, advanced practice nurses, registered nurse practitioners, physician assistants, licensed counselors and marriage & family therapists who serve as preceptors in Arkansas.
  • Trainees: medical students, residents, physician assistant students, nursing students, and counseling students who receive required preceptorship training in Arkansas.
  • Fiscal/administrative: state General Revenues would be reduced to the extent credits are claimed and refunded; the Department of Revenue would administer credits. Educational institutions may benefit indirectly by improved capacity for clinical rotations.

Anticipated impacts

  • Incentivizes providers to accept students/residents for clinical rotations, potentially expanding in‑state clinical training capacity and supporting workforce development.
  • Fiscal impact: increased tax expenditures and potential refunds to taxpayers; the bill text does not include a fiscal estimate or appropriation.
  • Caps limit per‑taxpayer exposure ($10,000 max for uncompensated preceptors; $6,000 cap for compensated preceptors).

Procedural status

  • The provided status indicates HB 1670 “Died In Committee.” (Materials also include varied legislative actions and references across jurisdictions; the bill was introduced December 18, 2024, and the tax provisions specify effect for tax years beginning Jan 1, 2025.) Because the legislative history in the materials is mixed across states, the most salient point is that this proposal did not become law as provided.

Other materials in the file (separate bills)

  • Indiana HB 1670 (separate): A “Veteran Empowerment Protections” / “Veteran Empowerment Act” proposal regulating paid veterans’ benefits advisers (disclosures, fee limits, background checks, ban on international call centers). Effective July 1, 2025. (Different subject and jurisdiction.)
  • Illinois HB 1670 (separate): Minor/technical amendment to the Environmental Protection Act short title.
  • Title at very top about bonds for East Madison Water Association appears unrelated to the Arkansas tax text and likely corresponds to a different bill with the same number in another chamber/jurisdiction.

If you want, I can:
- Produce a one‑page fiscal note draft estimating potential revenue effects (requires assumptions about number of preceptors and students), or
- Extract and summarize the Indiana “Veteran Empowerment” provisions as a separate brief.

Compiled from official sources — confirm details with the bill’s official record.

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