Maryland Department of Health
Office of Population Health Improvement

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Maryland Income Tax Credit for Preceptors

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The Maryland Income Tax Credit for Preceptors application cycle opens on December 1, 2025. Application components will be accepted starting on that date.

​​Background

​Though dedicated healthcare providers work to meet the varied healthcare needs of Marylanders every day, healthcare workforce shortages persist. The  Income Tax Credit for Preceptors in Areas with Health Care Workforce Shortages Programs (Preceptor Tax Credit Programs)  aims to improve the number of graduating healthcare professionals and support the recruitment and retention of the health professional workforce in Maryland.   Through an annual application cycle, the Program authorizes a credit against the State income tax for individuals who served as an uncompensated preceptor in certain preceptorship programs in healthcare workforce shortage areas within the most recent tax year.  ​​

 

The Preceptor Tax Credit Programs are authorized via State law as follows: ​

​Physicians (Medical School) Student Preceptors:
​Originating Bill: 

​​Tax–General Article, §10–738, Annotated Code of Maryland

Senate Bill 0411 (2016)​

House Bill 1494​​​​

​Nurse Practitioner Student Preceptors:
​Originating Bill: 

​Tax–General Article, §10–739, Annotated Code of Maryland
Senate Bill 0411 (2016)
House Bill 1494​

​​Physician Assistant Student Preceptors:
​Originating Bill: 

​Tax–General Article, §10–752, Annotated Code of Maryland
Senate ​Bill 0102 (2021)​​
House Bill 1252​

​​Registered Nurse & Licensed Practical Nurse Student Preceptors:
​Originating Bill: 

​Tax-General Article,  §10-​739.1, An​​notated Code of Maryland
​House Bill 1208 (2022)​



The Maryland Department of Health (MDH) implements the Preceptor Tax Credit Programs according to the parameters outlined in Maryland State law.

  • ​Tax credits are issued based on applicant qualification and the availability of funding each tax year. 

  • ​​​To request tax credits, preceptors must submit a complete application to the program during the open application cycle for the tax year for which they are served.  

  • Credits can only be certified up to the funding amounts available each year.  

  • Credits are not guaranteed.

  • It is vital and the responsibility of the applicant to track the submission of their application documentation to ensure on-time delivery of a complete and accurate application, including required validation documentation from academic institutions.

​ Income Tax Credits for Preceptors in Areas with Health Care Workforce Shortages Draft Regulations

  **THESE DRAFT REGULATIONS ARE POSTED FOR COMMENTS AND FEEDBACK ONLY. THESE DRAFT REGULATIONS ARE NOT FOR PROMULGATION.**


The Maryland Department of Health requests informal stakeholder input on revisions to COMAR 10.01.01 Income Tax Credits for Preceptors in Areas with Health Care Workforce Shortages. Among other changes, the proposed amendments expand the definition of health care practitioner and update rotation hour requirements in response to statutory amendments, and add an appeals process.

The Income Tax Credits for Preceptors program implements Tax-General Articles, §§10-738, 10-739, 10-739.1, and 10-752, Annotated Code of Maryland. Additionally, House Bill 19/Senate Bill 216, Chapter 416 (2025), amended Tax–General Articles, §§10-739 and 739.1, Annotated Code of Maryland.  

Proposed revisions to COMAR 10.01.01 include:

  • Expansion of the definition of health care practitioners to include advanced practice registered nurse, registered nurse, and licensed practical nurse. 
  • Reduction of rotation hours for community-based clinical training from the current 100 hours of rotation to 90 hours for preceptors of certain student types. 
  • An appeals process and amended COMAR 10.01.01.04(D).
  • Clarity and streamlining the administration and management of the program.

Draft COMAR 10.01.01 - Income Tax Credits for Preceptors in Areas with Health Care Workforce Shortages

Comments: Submit comments on the draft regulations via email by Tuesday, August 19, 2025 to [email protected]. Please include your name, title, and organization in your submission.

 Application Process

​​​Contact​

If you would like to sign up for our Workforce Listserv to receive updates about the Preceptor Tax Credit Programs click h​e​re​​​​. 


​Maryland Department of Health
201 W. Preston Street
Baltimore, MD 21201
Phone: 410-767-6123
[email protected]

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Last updated:  02-06-2025