A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 12-6-1180 SO AS TO ALLOW AN INCOME TAX DEDUCTION FOR EACH CLINICAL ROTATION SERVED BY A PHYSICIAN, ADVANCED PRACTICE NURSE, OR PHYSICIAN ASSISTANT AS A PRECEPTOR FOR CERTAIN PROGRAMS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.A.  Article 9, Chapter 6, Title 12 of the S.C. Code is amended by adding:

 

    Section 12-6-1180. (A) For the purposes of this section:

       (1) "Independent institution of higher learning" has the same meaning as provided in Section 59-113-50.

       (2) "Medical school-required clinical rotation", "physician assistant program-required clinical rotation", or "advanced practice nursing program-required clinical rotation" means a clinical rotation for a public teaching institution or independent institution of higher learning that:

           (a) is established for a student who is enrolled in a South Carolina public teaching institution or an independent institution of higher learning, including:

               (i) medical school;

               (ii) a physician assistant program; and

               (iii) an advanced practice nursing program; and

           (b) includes a minimum of one hundred sixty hours of instruction in one of the following clinical settings:

               (i) family medicine;

               (ii) internal medicine;

               (iii) pediatrics;

               (iv) obstetrics and gynecology;

               (v) emergency medicine;

               (vi) psychiatry;

               (vii) general surgery under the guidance of a physician, advanced practice registered nurse, or physician assistant; or

               (viii) specialty care including, but not limited to, dermatology, hematology, neurology, and oncology.

       (3) "Preceptor" means a physician, advanced practice nurse practitioner, or physician assistant who provides supervision and instruction during student clinical training experiences, is otherwise not compensated for doing so, and provides a minimum of two required clinical rotations within a calendar year.

    (B)(1) There is allowed an income tax deduction for each clinical rotation a physician serves as the preceptor for a medical school-required clinical rotation, advanced practice nursing program-required clinical rotation, and physician assistant program-required clinical rotation.

       (2)   If the physician's or nurse practitioner's practice includes Medicaid-insured or Medicare-insured, then the deduction is equal to one thousand dollars for each rotation served, not to exceed four thousand dollars a year.  The provider must be a Medicaid participating provider and have a minimum of at least one hundred Medicaid and Medicare patients combined or be a free clinic.

    (C) There is allowed an income tax deduction for each clinical rotation an advanced practice registered nurse or physician assistant serves as the preceptor for an advanced practice nursing or physician assistant-required clinical rotation.

    (D)  A deduction earned pursuant to this section is considered earned in the tax year in which the rotation is served. Fifty percent of the funds earned may be claimed in the tax year in which it is earned, and the remaining fifty percent may be claimed in the next year.  However, the funds claimed in a tax year may not exceed fifty percent of the taxpayer's remaining tax liability after all other deductions have been applied.

    (E) By March thirty first of each year that the tax deduction is allowed, the department shall report the number of taxpayers claiming the deduction allowed by this section, the total amount of deductions allowed, and the number of hours that the recipient taxpayers served as preceptors to the Senate Finance Committee, the House of Representatives Ways and Means Committee, and the Governor. The department must disaggregate taxpayers between physicians, advanced practice registered nurses, and physician assistants.

    (F)   The department may consult with a designated administrative entity to determine eligibility and may require any proof that it determines necessary to efficiently administer the deduction allowed by this section. The department may promulgate regulations necessary to implement the provisions of this section.

 

B. A taxpayer may not claim the deduction allowed by Section 12-6-1180 and claim the credit and deduction allowed by Section 12-6-3800 in the same tax year.

 

SECTION 2.  This act takes effect upon approval by the Governor and applies to tax years beginning after 2024 and ending before 2030, at which time, Section 12-6-1180 is repealed.

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