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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*sb0466*
SENATE BILL 466
Q3 6lr1792
CF HB 595
By: Senator King
Introduced and read first time: February 2, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 2, 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
10–738. 21
2 SENATE BILL 466
(a) (1) In this section the following words have the meanings indicated. 1
(2) “Department” means the Maryland Department of Health. 2
(3) “Licensed physician” means an individual who is licensed to practice 3
medicine under Title 14 of the Health Occupations Article. 4
(4) “Preceptorship pro gram” means an organized system of clinical 5
experience that, for the purpose of attaining specified learning objectives, pairs an enrolled 6
student of a Liaison Committee on Medical Education –accredited medical school [in the 7
State] or an individual in a po stgraduate medical training program [in the State] with a 8
licensed physician who meets the qualifications as a preceptor. 9
(b) (1) Subject to the limitations of this section, a licensed physician may claim 10
a credit against the State income tax in the amou nt stated on the tax credit certificate 11
issued under subsection (c) of this section for the taxable year in which the licensed 12
physician served without compensation as a physician preceptor in a preceptorship 13
program authorized by an accredited medical school [in the State] and worked: 14
(i) a minimum of three rotations, each consisting of [100] 90 hours 15
of community–based clinical training; and 16
(ii) in an area of the State identified as having a health care 17
workforce shortage by the Department, in co nsultation with the Governor’s Workforce 18
Development Board. 19
(2) (i) The total amount of the credit allowed under this section for any 20
taxable year may not exceed the State income tax imposed for that taxable year. 21
(ii) Any unused amount of the credit for any taxable year may not be 22
carried over to any other taxable year. 23
(c) (1) On application by a licensed physician, the Department shall issue a 24
credit certificate in the amount of $1,000 for each student rotation of the minimum number 25
of hours required under subsection (b)(1)(i) of this section for which the licensed physician 26
served as a physician preceptor without compensation. 27
(2) The application shall contain: 28
(i) the name of the licensed physician; 29
(ii) information identifying the physician preceptorship in which the 30
licensed physician participated; 31
(iii) the number and names of the students for whom the individual 32
served as a physician preceptor without compensation; and 33
SENATE BILL 466 3
(iv) any other information that the Department requires. 1
(3) For any taxable year, the amount of tax credit stated in the tax credit 2
certificate may not exceed $10,000. 3
(4) The Department shall: 4
(i) approve all applications that qualify for a tax credit certificate 5
under this subsection on a first–come, first–served basis; and 6
(ii) notify a taxpayer within 45 days of receipt of the taxpayer’s 7
application of its approval or denial. 8
(5) (i) For each taxable year, the total amount of tax credit certificates 9
that may be issued by the Department under this section may not exceed $100,000. 10
(ii) If SUBJECT TO THE LIMITA TION UNDER SUBPARAGR APH 11
(III) OF THIS PARAGRAPH, IF the aggregate amount of tax credit certificates issued under 12
this section during a taxable year total less than the amount authorized under this 13
paragraph, any excess amount may be issued under tax credit certificates in the next 14
taxable year. 15
(III) THE AGGREGATE AMOUNT CARRIED FORWARD FROM ALL 16
PRIOR FISCAL YEARS I N ACCORDANCE WITH SU BPARAGRAPH (II) OF THIS 17
PARAGRAPH MAY NOT EXCEED $100,000. 18
(d) On or before January 31 of each taxable year, the Department shall: 19
(1) report to the Comptroller on the tax credit certificates issued under this 20
section during the prior taxable year; and 21
(2) report to the General Assembl y, in accordance with § 2 –1257 of the 22
State Government Article, on the utilization of the credit established under this section. 23
(e) The Department, in consultation with the Governor’s Workforce Development 24
Board, shall adopt regulations to carry out the provisions of this section, including the 25
criteria and procedures for application for, approval of, and monitoring eligibility for the 26
tax credit authorized under this section. 27
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 29