PRECEPT Nurses Act Would Use Tax Credits to Address Workforce Shortage

• Legislation known as the PRECEPT Nurses Act would establish a pilot program that provides a tax credit to nurses who take on preceptor roles. 
• Bills have been introduced in the Senate and House of Representatives with bipartisan support. 
• State- and institution-level incentive programs for nurse preceptors are already in place throughout the country. 

Recently introduced, bipartisan legislation could help unburden nurses who have worked through a staffing shortage for years. 

Arizona Sen. Mark Kelly and Tennessee Sen. Marsha Blackburn’s Providing Real-World Education and Clinical Experience by Precepting Tomorrow’s (PRECEPT) Nurses Act would provide a $2,000 tax credit to nurses who take on the clinical preceptor role for students and new hires. 

Rep. Jen. Kiggans, also a geriatric nurse practitioner, introduced the House’s version of the PRECEPT Nurses Act alongside Reps. Dave Joyce, Claudia Tenney, and Jim Costa. 

“By creating more opportunities for both existing nurses and nursing students, we can provide better, more reliable care to America’s patients while preventing burnout in our healthcare workforce,” Kiggans stated. 

Legislators believe that “incentivizing experienced nurses” to guide others will strengthen the workforce pipeline and improve access to care. The leadership of various hospital and nursing associations also have expressed support for the bill. 

Tell Me More About the PRECEPT Nurses Act 

If approved, the measure would establish a seven-year pilot program in which eligible nurse preceptors guide new hires, nursing and APRN students. Preceptors interested in receiving the tax credit would need to:  

• Provide proof of their certification  
• Have worked at least 200 hours in designated health professional shortage areas (determined by the Public Health Service Act). 

New hires are those within their first six months of employment, according to the bill text. 

The Arizona State Board of Nursing, the Arizona Hospital and Healthcare Association (AzHHA), the American Nurses Associations, the American Association of Colleges of Nursing, and various university leadership have publicly supported the PRECEPT Nurses Act. 

Ann-Marie Alameddin, AzHHA president and CEO, said in a statement that preceptors play a “crucial role” in helping nurses transition from the classroom to the bedside. 

“This support is vital for nurse retention, especially following the loss of experienced preceptors during the COVID-19 pandemic,” Alameddin said. “Investing in their development is essential to the healthcare ecosystem.”

Kelly first introduced the PRECEPT Nurses Act in the Senate in 2023, but it did not progress beyond the Committee on Finance. 

History of Preceptor Incentives

From payment through grant programs to state-level tax credits, providing incentives for nurse preceptors is nothing new. Last September, Nursing CE Central explored the various methods of encouraging practitioners to take on that leadership role for newer nurses.

At that time, Washington state had established a preceptorship grant, the Tennessee Hosptial Association was running an incentive program based on preceptorship hours, and Hawaii had a tax credit for eligible APRNs. But discussions are ongoing about whether or not nurse preceptors should even receive compensation and how that affects educational institutions.

A 2022 study published in BMC Medical Education found that a preceptorship program’s success partially depends on commitment from the nurses who take on the responsibility. The authors also noted that “sufficient benefits and rewards, resources and support” could improve commitment. 

The Importance of Nurse Preceptors

Nurse preceptors play dual roles, caring for patients and guiding new nurses in the early days of their careers. Sara Angelilli, DNP, RN, CNOR, NPD-BC, sees four key roles for preceptors, which she details in 2024 Association of periOperative Registered Nurses article: role model, socializer, coach, and protector. 

Plus, NCC author Charmaine Robinson, MSN-Ed, BSN, RN, previously wrote that preceptors can help mentor young practitioners who might otherwise leave the industry and pad their own resume with the professional development and leadership required of the role. 

The Bottom Line

The bipartisan PRECEPT Nurses Act would introduce a seven-year pilot program that offers a $2,000 tax credit to nurses who serve as nurse preceptors. Legislators on both sides of the aisle see the measure as a way to combat the nursing shortage. Several nursing and healthcare organizations are in favor of the bill. Readers can track progress of the legislation through Congress.gov. 

Read More