Massachusetts Considers a Healthcare Preceptor Tax Credit
The Massachusetts Legislature is considering companion legislation, H.3218 and S.1960, in its attempt to 1) recognize and address healthcare workforce shortages throughout the Commonwealth and 2) encourage health professionals to participate in training programs. The bills would grant certain healthcare providers a tax credit for working as a preceptor in an approved preceptorship program.
Proposed Law
If enacted, the legislation would grant a tax credit to licensed physicians, registered nurses, advanced practice nurses and physician assistants (PAs) who work as a preceptor in a preceptorship program approved by the relevant board or division of licensing, without compensation, for at least three rotations, each consisting of at least 100 hours (i.e., a total of 300 hours), and do so in an area identified by the Massachusetts Department of Public Health (DPH) as having a workforce shortage.
Eligible healthcare providers would receive a tax credit of $1,000 for each rotation, up to a maximum of $5,000 annually (although the amount of the credit issued cannot exceed such year's state income tax imposed).
To seek the tax credit, providers will apply to DPH, which would approve qualifying applications on a first-come, first-served basis, and send a tax credit certificate to the provider and Department of Revenue.
The tax credits are intended to be available for tax years beginning on or after January 1, 2026.
Proposed Law in Context
Based on information presented at a 2023 Health Workforce Research Symposium, at least eight states have enacted statutes granting tax credits to preceptors, although these differ as to provider eligibility.
Additionally, legislation introduced in the U.S. Congress by Rep. Jennifer Kiggans (R-Va.) would grant tax credits to nurse preceptors in health professional shortage areas.
Next Steps
The Massachusetts legislation is pending with the Joint Committee on Revenue after a hearing held on September 16, 2025.1 The Joint Committee has extended the reporting date until February 20, 2026, on H.3218.
Holland & Knight will provide updates on the bills as they become available. In the interim, please contact the authors with any questions.
Notes
1 The authors note that the Massachusetts Legislature is concurrently considering a series of other proposed bills that would impact PAs. Holland & Knight will separately provide summaries of these bills and continue tracking their status.