Bill would give $1,000 income‑tax credit per medical rotation to encourage rural preceptors

Senator Theresa Ibach introduced Legislative Bill 305, the Preceptorship Tax Credit Act, to create a Nebraska income‑tax credit for practicing clinicians who serve as unpaid preceptors for medical students or residents. The proposal offers a $1,000 credit for each eligible rotation completed; a single taxpayer may claim up to $5,000 in a tax year.

"Preceptorships are volunteer unpaid roles," Senator Ibach said. "LB 305 is a step toward ensuring we can provide quality opportunities for training and experience in rural areas for the next generation of Nebraska physicians."

Physicians and rural health advocates who testified in support described the time and scope of preceptorships and said student rotations often change career trajectories in favor of rural practice. Richard Freeling, a family physician in Grand Island with decades of precepting experience, described 3rd‑ and 4th‑year clinical rotations and how rural placements introduce students to the full scope of family medicine—outpatient, inpatient, obstetrics and emergency care. "These experiences are frequently career changing for the student," Freeling said.

Medical students and residents testified about how one rural rotation shaped their choices to practice in smaller communities. Creighton graduate and current resident Hunter Allen credited his rural rotation and mentor in North Platte with changing his career path; he told the committee the month he spent with a rural preceptor was "my most memorable and impactful month of medical school."

Supporters urged that the credit be seen as a modest incentive—recognition rather than full compensation for precepting time—and discussed potential expansion to other clinician types. Jed Hansen of the Nebraska Rural Health Association recommended the committee consider adding advanced practice clinicians and bedside nurses to any incentive structure because rural workforce shortages extend beyond physicians.

Lawmakers asked practical questions: how many rotations constitute a claimable credit, whether students are paid during rotations (students are generally not paid), how rotations affect physician practice schedules, and how the state would verify unpaid precepting. Testifiers said rotations typically involve an 8‑week clerkship for third‑year students or multiweek blocks during clinical training; the bill as drafted ties each qualifying rotation to a set minimum of time (testimony referenced 80–100 hours per rotation).

Why it matters: Nebraska faces shortages of clinicians in many rural communities; evidence presented to the committee indicates clinicians who train students in rural settings are more likely to stay. LB 305 aims to modestly reward clinicians who volunteer precepting time and thereby increase rural training capacity. The sponsor said she will work with stakeholders about scope, verification and possible expansion to other clinician categories.

Provenance: The bill was introduced by Senator Ibach (transcript segment starting at 10262.045) and proponents (physicians, residents, rural health association) testified in the subsequent hour of the hearing.