FISCAL NOTE
Date Requested: February 13, 2023
Time Requested: 04:23 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3597 |
Introduced |
HB3388 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
General Revenue Fund, Preceptor Tax Credit Incentive Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses, Creates New Fund: Preceptor Tax Credit Incentive Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to create the Health Care Professionals Preceptor Tax Credit.
This bill would provide a Personal Income Tax credit to community-based health professional preceptors who provide preceptorships. Registered preceptors would be eligible to receive up to three tax credits of $500. Each credit would be awarded upon the completion of a minimum of 160 hours of clinical preceptorship of a student enrolled in a program at a public or private higher education institution in West Virginia. These tax credits would be nonrefundable.
According to the Vice Chancellor for Health Sciences at the West Virginia Higher Education Policy Commission, there is currently no such thing as a registered clinical preceptor as this bill would establish such a registration. Additionally, a preceptor may work with students from multiple schools or multiple students over varying periods of time. As a result, there is no database to determine the number of preceptors that practice within the state. According to a representative from the West Virginia School of Osteopathic Medicine, there may be “hundreds for 3rd year students and even more for 4th year.” This is likely also true for other schools and disciplines throughout the state. As of 2021, there were 13,750 health sciences students in public schools in West Virginia, each of which would be precepted by multiple preceptors during their training. This bill would limit the eligible preceptors to outpatient practices, which would still involve many preceptors since every student rotates in multiple outpatient environments. The funding of the tax credit costs appears to be limited to the dollar amount that is available in the new Preceptor Tax Credit Incentive Fund.
Administrative costs incurred by the Tax Department would be $15,000 in FY2024.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
15,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
15,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This bill would provide a Personal Income Tax credit to community-based health professional preceptors who provide preceptorships. Registered preceptors would be eligible to receive up to three tax credits of $500. Each credit would be awarded upon the completion of a minimum of 160 hours of clinical preceptorship of a student enrolled in a program at a public or private higher education institution in West Virginia. These tax credits would be nonrefundable.
According to the Vice Chancellor for Health Sciences at the West Virginia Higher Education Policy Commission, there is currently no such thing as a registered clinical preceptor as this bill would establish such a registration. Additionally, a preceptor may work with students from multiple schools or multiple students over varying periods of time. As a result, there is no database to determine the number of preceptors that practice within the state. According to a representative from the West Virginia School of Osteopathic Medicine, there may be “hundreds for 3rd year students and even more for 4th year.” This is likely also true for other schools and disciplines throughout the state. As of 2021, there were 13,750 health sciences students in public schools in West Virginia, each of which would be precepted by multiple preceptors during their training. This bill would limit the eligible preceptors to outpatient practices, which would still involve many preceptors since every student rotates in multiple outpatient environments. The funding of the tax credit costs appears to be limited to the dollar amount that is available in the new Preceptor Tax Credit Incentive Fund.
Administrative costs incurred by the Tax Department would be $15,000 in FY2024.
Memorandum
The stated purpose of this bill is to create the Health Care Professionals Preceptor Tax Credit.
Definitions are given but in some cases refer to terms which are themselves undefined. Some of those terms are sufficiently vital to administration of the tax credit that their lack of a definition in the new statute may be a significant hindrance.
It is altogether unclear exactly how the tax credit is to work and how the credit functions in conjunction with the new fund created in the bill. No process for verifying the amount of the tax credit to the Tax Division is stated. There is no provision for rules.
In §30-1-10, the new fund, the “Preceptor Tax Credit Incentive Fund” is established, but the purpose of the fund is unclear. It appears that funds more than twice the annual budget of any given board (health professional boards which are not listed and therefore ambiguous) or $10,000 will be paid into the fund. No provision for payment out of the fund is given.
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov