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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0595*
HOUSE BILL 595
Q3 6lr1793
CF SB 466
By: Delegates Lewis, Addison, Alston, Conaway, Feldmark, Hill, Stinnett, and
Young
Introduced and read first time: January 28, 2026
Assigned to: Ways and Means and Health
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 26, 2026
CHAPTER ______
AN ACT concerning 1
Income Tax – Credit for Physician Preceptors in Areas With Health Care 2
Workforce Shortages – Alterations 3
FOR the purpose of altering eligibility for a certain credit against the State income tax for 4
certain physician preceptors by repealing a requirement that a student in a 5
physician preceptorship program be enrolled in a medical school or medical training 6
program in the State and reducing the required number of hours for a preceptor 7
rotation for community –based clinical training; limiting the excess amount of tax 8
credit certificates that the Department may carry forward and issue in subsequent 9
taxable years; and generally relating to a credit against the State income tax for 10
licensed physicians serving as physician preceptors in areas with health care 11
workforce shortages. 12
BY repealing and reenacting, with amendments, 13
Article – Tax – General 14
Section 10–738 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Tax – General 20
2 HOUSE BILL 595
10–738. 1
(a) (1) In this section the following words have the meanings indicated. 2
(2) “Department” means the Maryland Department of Health. 3
(3) “Licensed physician” means an individual who is licensed to practice 4
medicine under Title 14 of the Health Occupations Article. 5
(4) “Preceptorship program” means an organized system of clinical 6
experience that, for the purpose of attaining specified learning objectives, pairs an enrolled 7
student of a Liaison Committee on Medical Education –accredited medical school [in the 8
State] or an individual in a postgraduate medical training program [in the State] with a 9
licensed physician who meets the qualifications as a preceptor. 10
(b) (1) Subject to the limitations of this section, a licensed physician may claim 11
a credit against the State income tax in the amount stated on the tax credit certificate 12
issued under subsection (c) of this section for the taxable year in which the licensed 13
physician served without compensation as a physician preceptor in a prec eptorship 14
program authorized by an accredited medical school [in the State] and worked: 15
(i) a minimum of three rotations, each consisting of [100] 90 hours 16
of community–based clinical training; and 17
(ii) in an area of the State identified as having a health care 18
workforce shortage by the Department, in consultation with the Governor’s Workforce 19
Development Board. 20
(2) (i) The total amount of the credit allowed under this section for any 21
taxable year may not exceed the State income tax imposed for that taxable year. 22
(ii) Any unused amount of the credit for any taxable year may not be 23
carried over to any other taxable year. 24
(c) (1) On application by a licensed physician, the Department shall issue a 25
credit certificate in the amount of $1,000 for each student rotation of the minimum number 26
of hours required under subsection (b)(1)(i) of this section for which the licensed physician 27
served as a physician preceptor without compensation. 28
(2) The application shall contain: 29
(i) the name of the licensed physician; 30
(ii) information identifying the physician preceptorship in which the 31
licensed physician participated; 32
HOUSE BILL 595 3
(iii) the number and names of the students for whom the individual 1
served as a physician preceptor without compensation; and 2
(iv) any other information that the Department requires. 3
(3) For any taxable year, the amount of tax credit stated in the tax credit 4
certificate may not exceed $10,000. 5
(4) The Department shall: 6
(i) approve all applications that qualify for a tax credit certificate 7
under this subsection on a first–come, first–served basis; and 8
(ii) notify a taxpayer within 45 days of receipt of the taxpayer’s 9
application of its approval or denial. 10
(5) (i) For each taxable year, the total amount of tax credit certificates 11
that may be issued by the Department under this section may not exceed $100,000. 12
(ii) If SUBJECT TO THE LIMITA TION UNDER SUBPARAGR APH 13
(III) OF THIS PARAGRAPH, IF the aggregate amount of tax credit certificates issued under 14
this sect ion during a taxable year total less than the amount authorized under this 15
paragraph, any excess amount may be issued under tax credit certificates in the next 16
taxable year. 17
(III) THE AGGREGATE AMOUNT CARRIED FORWARD FROM ALL 18
PRIOR FISCAL YEARS I N ACCO RDANCE WITH SUBPARAG RAPH (II) OF THIS 19
PARAGRAPH MAY NOT EXCEED $100,000. 20
(d) On or before January 31 of each taxable year, the Department shall: 21
(1) report to the Comptroller on the tax credit certificates issued under this 22
section during the prior taxable year; and 23
(2) report to the General Assembly, in accordance with § 2 –1257 of the 24
State Government Article, on the utilization of the credit established under this section. 25
(e) The Department, in consultation with the Governor’s Workforce Development 26
Board, shall adopt regulations to carry out the provisions of this section, including the 27
criteria and procedures for application for, approval of, and monitoring eligibility for the 28
tax credit authorized under this section. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 31