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HB 2163

Providing for the preceptor income tax incentive act, establishing an income tax credit for nursing home administrators, registered nurses and registered dietitians that serve as a community-based faculty preceptor in adult care homes and medical care facilities by providing personalized instruction, training and supervision for students.

2025-2026 Regular Session

Creates a nonrefundable Kansas income tax credit for licensed nursing home administrators, RNs, or dietitians who uncompensatedly precept students, up to $750 per year and $50,000

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Bill Summary · HB 2163

Summary — HB 2163 (Preceptor Income Tax Incentive Act) — Kansas (2025)

Status: Introduced January 28, 2025. House Committee on Taxation amended the bill and issued a Committee Report recommending passage as amended.
Sponsor: Rep. Howerton (requested on behalf of LeadingAge Kansas).

Purpose / Intent

To create a short-term state income tax incentive to encourage licensed nursing home administrators, registered nurses, and registered dietitians to serve as uncompensated community-based “preceptors” who provide hands‑on mentoring, instruction, training and supervision for students in Kansas adult care home and medical care facility clinical training programs.

Key provisions

  • Establishes the Preceptor Income Tax Incentive Act, creating a nonrefundable Kansas income tax credit for eligible preceptors.
  • Eligible providers: individuals licensed in Kansas as a nursing home administrator, registered nurse, or registered dietitian.
  • Eligible preceptorships: uncompensated mentoring experiences that provide personalized instruction, training and supervision to students enrolled in:
    • Kansas postsecondary institutions (as defined in the bill); or
    • Continuing education or “sponsored” programs approved by the Board of Adult Care Home Administrators.
  • Credit amount: $250 for every completed 40 hours of precepting provided to a student during the tax year.
  • Individual and aggregate limits (as amended by the Committee):
    • Individual cap: $750 per taxpayer per tax year (effectively up to 120 hours/year).
    • Aggregate cap: $50,000 total credits allowed statewide per tax year.
  • Time window: credit available for tax years 2025 through 2029 (bill as amended discontinues credit after 2029).
  • Certification / documentation:
    • Preceptors must certify to the Director of Taxation annually the number of instruction hours and the amount of credit claimed and must attest they received no payment for the training.
    • The student’s educational institution or sponsoring program must provide an annual statement verifying the preceptor’s hours; the preceptor submits that statement to the Department of Revenue.
  • Other rules:
    • Credit cannot be claimed for preceptorships for which the preceptor or the preceptor’s employer received compensation from another organization.
    • Credit is nonrefundable and cannot exceed the taxpayer’s income tax liability; unused credit is not refundable.

Fiscal and administrative impact

  • Department of Revenue estimate: reduces State General Fund revenues by about $1.5 million annually beginning FY2026 (estimate based on assumed participation rates and hours).
  • Implementation cost: estimated $108,985 from the State General Fund in FY2026 for tax system modifications and related implementation work.
  • The bill’s fiscal effects were not included in the FY 2026 Governor’s Budget Report.

Who is affected

  • Directly: eligible licensed preceptors (nursing home administrators, RNs, registered dietitians) who provide uncompensated preceptorships in Kansas.
  • Indirectly: postsecondary institutions and approved sponsored programs (responsible for verifying hours), students who may have more opportunities for clinical training, healthcare employers (may see increased preceptor availability), and the State General Fund (revenue impact).

Procedural / timeline notes

  • Introduced January 28, 2025. Amended in House Committee on Taxation to add a sunset (after 2029), place caps on individual and aggregate credits, and clarify sponsored-program eligibility.
  • Committee Report recommends passage as amended; further legislative action would determine final enactment.

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

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