Section 40-18-520 through Section 40-18-527, Code of Alabama 1975
Section 40-18-523 provides an income tax credit for community-based faculty preceptors who conduct qualifying, uncompensated clinical preceptorships in Alabama.
The Alabama Statewide Area Health Education Centers (AHEC) Program Office is the administering office for the preceptor tax credit provided under the Act. Questions regarding eligibility and qualifications of the program should be directed to Alia Tunagur at atunagur@uab.edu.
Additional Information about the Credit
Provisions of the Preceptor Tax Credit include:
- The credit may be applied against individual income tax for qualifying taxpayers.
- The credit is available beginning with the 2024 tax year and expires September 29, 2031.
- An individual may not accrue more than 12 clinical preceptorships in any combination of the following categories:
- Community-based physician, dentist, and optometrist preceptors may claim a $500 credit for each qualified rotation, with an annual maximum of $6,000.
- Community-based physician assistant preceptors may claim a $425 credit for each qualified rotation, with an annual maximum of $5,100.
- Community-based advance practice nurse preceptors may claim a $425 credit for each qualified rotation, with an annual maximum of $5,100.
- The tax credit cannot reduce a taxpayer’s tax liability below zero and cannot be carried to prior or succeeding tax years.
- Eligible preceptors applying for the credit must obtain a credit certificate from the AHEC Program Office and submit a copy to the Department of Revenue through My Alabama Taxes.
- The department may request additional information to verify the validity of the tax credit as needed.
To utilize the credit on your individual income tax return, a credit claim request must be submitted via My Alabama Taxes prior to the filing of your return. Once approved, the credit must be reported on Schedule OC when filing your return.
Additional Resources