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: Tax–General Article, §10–738, Annotated Code of Maryland
Originating Bill: Senate Bill 0411 (2016)
Nurse Practitioner Student Preceptors: Tax–General Article, §10–739, Annotated Code of Maryland
Originating Bill: Senate Bill 0411 (2016)
Physician Assistant Student Preceptors: Tax–General Article, §10–752, Annotated Code of Maryland
Originating Bill: Senate Bill 0102 (2021)
Registered Nurse & Licensed Practical Nurse Student Preceptors: Tax-General Article, §10-739-1, Annotated Code of Maryland
Originating Bill: 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.
Preceptor Tax Credit Program Qualification
In order to qualify for the tax credit under the Preceptor Tax Credit Programs, a health professional must meet the criteria described below during the Tax Year for which they are applying for a tax credit. Qualification criteria include specific attributes related to:
Type of professional/preceptor
Enrollment of students in a recognized preceptorship program
Preceptor practice site location
Qualifying Professionals/Preceptors, Student Types, and Preceptorship Programs
Healthcare professionals must serve without compensation as a preceptor of an eligible student type, in a recognized preceptorship program. A preceptorship program means an organized system of clinical experience for the purpose of attaining specified learning objectives. See the chart below for qualifying professionals, student types, and preceptorship programs:
Qualifying Student Type
Physician (MD or DO)
Advanced Practice Registered Nurse (APRN)
Nurse Practitioner (NP)
Certified Nurse Midwife (CNM)
Clinical Nurse Specialist (CNS)
Certified Registered Nurse Anesthetist (CRNA)
Physician Assistant (PA)
Registered Nurse (RN)
Licensed Practical Nurse (LPN)
Recognized Preceptorship Programs
Qualifying Rotation Hours
Healthcare professionals must act as a preceptor for a minimum of three distinct rotations, each consisting of at least 100 hours (a minimum total of 300 preceptor hours) of community–based clinical training within a taxable year.
A physician assistant student preceptor must act as a preceptor for a minimum of three rotations, each consisting of at least 100 hours of community–based clinical training in family medicine, general internal medicine, or general pediatrics.
Qualifying Practice Sites
Health care professionals must provide the community clinical preceptorship rotations at a practice site located within an area with health care workforce shortages determined by being situated within one of the following, a:
Click on the links associated with each shortage designation to determine a practice site’s inclusion in the criteria.
Credit Amount and Limits
Tax credit certificates will be issued by MDH in the amount of $1,000 for each rotation for which a Physician, Physician Assistant, Advanced Practice Registered Nurse, or Licensed Practical Nurse acted as a preceptor without compensation and meets all other qualifying criteria.
Tax credits may not exceed $10,000 per individual preceptor per tax year.
Tax credits are issued on a first come first serve basis as applications are received, and are based on the availability of funding each tax year.
The annual Preceptor Tax Credit Programs application is open from December 1 through January 5 for the preceding tax year (December 1, 2023 application opening for the 2023 tax year). All components of the application must be received by the application cycle deadline. It is vital that applicants 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.
Complete program applications are processed within 45 days of program receipt, on a first-come, first-served basis. Please note that processing times may be delayed if a particular application requires follow-up.
Tax credits are issued based on applicant qualification and are subject to the availability of funds. Credits can only be certified up to the funding amounts available each year and are not guaranteed for every eligible applicant.
The application cycle is now closed.
Frequently Asked Questions
Download a copy of the FAQ document here.
If you would like to sign up for our Workforce Listserv to receive updates about the Preceptor Tax Credit Programs click here.
Maryland Department of Health
201 W. Preston Street, 4th Floor
Baltimore, MD 21201