Income Tax Credit for Preceptors

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



The Preceptor Tax Credit Program is from Senate Bill 411 / House Bill 1474 (Chapters 385 and 386, respectively), 2016 Legislative Session. The Program is administered through the Department of Health and Mental Hygiene (DHMH) under the following Authority: Tax–General Article, §§10–738 and 10–739; Education Article, §18–803(b)(1) and (2), (e)(2) and (3); and Health Occupations Article, §8–206(b), Annotated Code of Maryland.
The proposed regulations (COMAR 10.01.01 and COMAR to support the statutory authority have an anticipated publication date of January 20, 2017 and public comment period ending February 21, 2017.


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

What is Health Care Workforce Shortage Area?

  • Heath professional shortage area (HPSA)
  • Medically underserved area (MUA)
  • Medical underserved population (MUP)
  • Federal designated rural areas
  • State designated rural areas
  • State defined shortage areas
  • Other areas defined as in need by the Governor, Secretary of DHMH, or as otherwise determined by DHMH in consultation with the Governor’s Workforce Development Board.


  • Physician 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 160 hours (a total of 480 preceptor hours within a taxable year).  
  • Practice location in a health care workforce shortage area.

Credit Amount and Limits

  • The credit certificate will be issued by DHMH in the amount of $1000 for each student whom the Physician 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.


  • Application was open January 5, 2017 to January 25, 2017. The application is now closed.


Where can I learn more?

  • Temi Oshiyoye,
    Director, State Office of Rural Health and Workforce Program
    Office of Population Health Improvement,
    410-767-4467 or
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Last updated: 2017 January 12