The PRECEPT Nurses Act is a piece of proposed federal legislation designed to offer financial incentives to nurses who serve as clinical preceptors mentoring nursing students, advanced practice nursing students, or newly-hired nurses — particularly in underserved communities. Nursing CE Central+3Congress.gov+3AACN+3
Key features:
- It would provide a $2,000 tax credit to an “eligible nurse preceptor” who provides at least 200 hours of supervised instruction/mentoring in a year in a designated Health Professional Shortage Area (HPSA). Congress.gov+2Congress.gov+2
- It applies to registered nurses (or certain licensed health care providers) who act as preceptors for students of nursing, advanced practice registered nursing (APRN), or newly hired licensed nurses. Congress.gov
- The effective date is set for taxable years beginning after December 31, 2025. Congress.gov+1
- The legislation also includes reporting requirements: the IRS (via the Treasury Secretary) must report annually to Congress about how many credits are claimed, geographic distribution, hours served, etc. Congress.gov+1
In short: this is an effort to treat the role of preceptors (which is often unpaid or under-rewarded) as something worthy of direct financial recognition, in order to bolster the clinical training pipeline.
History & legislative journey
Here’s how we got to this point:
Early signals
- Prior to the federal PRECEPT Act, several states experimented with tax credits or other incentives for preceptors. For example, a state-level study shows that at least eight U.S. states had preceptor tax‐incentives in place. HWTAC+1
- The underlying problem: nursing schools and NP/APRN programs have long reported preceptor shortages (i.e., lack of available experienced nurses willing/able to supervise students), which bottlenecks capacity. Nursing CE Central+1
Federal introduction
- The PRECEPT Nurses Act was introduced in the House as H.R. 392 on January 14, 2025 by Rep. Jen Kiggans (R-VA), with bipartisan co-sponsors. Congress.gov+2Kiggans for Congress+2
- In the Senate, the bill was introduced as S. 131 on January 16, 2025 by Sen. Mark Kelly (D-AZ) and Sen. Marsha Blackburn (R-TN). Congress.gov
- The legislation has strong backing from nursing associations. For example, the American Association of Colleges of Nursing (AACN) and other advocacy groups have applauded its introduction. AANA
- Although introduced in 2025, it remains pending and has not yet been passed into law. LegiScan+1
What it tried to accomplish
- The Act specifically addresses the “preceptor bottleneck” — by offering a defined tax credit for a defined threshold of precepting hours in shortage areas. Nursing Buffalo+1
- It articulates that preceptors must serve in a “community which is designated as a health professional shortage area” under the Public Health Service Act. Congress.gov
- It builds in a pilot / sunset structure: the bill covers taxable years beginning after December 31, 2025, includes evaluation and reporting through about 2032, and an evaluation by June 30, 2033. Congress.gov
What the future looks like (if the bill passes)
If the PRECEPT Nurses Act becomes law, here’s how things could unfold — and some caveats:
Potential positive impacts
- More available preceptors. With a $2,000 credit for 200 + hours, experienced nurses might be more willing to take on students / mentees, especially in HPSAs. That could expand capacity for NP/APRN programs and nursing students alike.
- More student placements, faster pathway to practice. With fewer bottlenecks at the preceptor-end, students could secure clinical placements more easily, potentially shortening program delays.
- Greater focus on underserved areas. Because the credit is tied to shortage-areas, this may shift more clinical training into rural, underserved, or federally-designated zones, which helps both student exposure and community care.
- Recognition of the preceptor role. Although $2,000 is modest compared to what many preceptors might say their time is worth, it signals that the role of mentoring and supervision is valuable and deserving of compensation. Reddit+1
Practical considerations and caveats
- Even if the bill passes, implementation matters. Schools, clinical sites, and preceptors will need to document hours, confirm HPSA status, track mentoring, etc. Without solid systems, the credit might be under-utilized. Nursing CE Central+1
- The credit is non-refundable, meaning it offsets tax liability rather than generating a refund. Some preceptors might not fully benefit if their tax liability is low. Congress.gov
- The $2,000 amount is relatively modest given the time-intensive nature of precepting (some critiques suggest more is needed). For example: “A $2,000 tax credit for nurse preceptors sounds like a step in the right direction, but … it doesn’t seem like much.” Reddit
- The requirement to be in an HPSA means many urban or suburban clinical practices may not qualify, which could limit access for students in certain regions.
- Because the legislation is still pending, nothing is guaranteed; if passage is delayed or modified, timelines and eligibility might change.
Timeline & next steps
- Recall: Effective for taxable years after December 31, 2025 — so assuming passage, the credit would kick in for the 2026 tax year (i.e., preceptor hours served in 2026 might be credit-eligible). Congress.gov+1
- After enactment, the IRS / Treasury will publish guidance: list of HPSA areas, eligible hours, definitions, reporting forms, etc.
- Programs will need to establish tracking systems so preceptors can certify their 200 + hours mentorship.
- Congress will receive annual reporting on usage, and must evaluate the pilot by 2033 to decide whether to extend, modify or terminate.
What it means for NP students
If you’re a Family Nurse Practitioner (FNP) student, a Doctor of Nursing Practice (DNP) candidate, or another APRN student — you’ll feel the effects of this legislation in these ways:
Improved access to preceptors
Because the PRECEPT Nurses Act aims to increase the pool of willing preceptors, you may have more options for clinical placements — especially in underserved or rural areas. That means less time chasing down preceptor commitments and possibly faster progress through your program.
Possibly more structured preceptorships
As institutions prepare for the requirements of the credit (documentation of hours, mentoring commitments, tracking), you might see your preceptor arrangements become more formal. That’s good because it means clearer expectations, more support, and possibly better learning experiences — but it also means you may have to engage proactively with those logistics (log your hours, ensure your preceptor is eligible, confirm site qualifies, etc.).
Potential for different placement-geography
Because the eligibility is tied to HPSAs, some of the strongest incentives may be toward clinics in rural or underserved communities. If your program allows, you may find yourself offered placements outside the typical urban/affluent clinics. That can be a great opportunity — you’ll gain rich experience in high-need settings. But it also may mean longer travel or less familiar settings. Flexibility will be helpful.
A heads-up for your preceptor conversations
When you approach a preceptor, it may be helpful to mention that this legislation exists (if/when it becomes law) and ask whether they intend to claim the credit. It shows you are savvy and considerate of their time and commitment. Also ask about documentation: Is the site tracking hours? Are you expected to log reflections or mentoring sessions? Is the site in a shortage area? These will be relevant under the legislation.
Overall motivation & pipeline benefit
Because your role as a student depends on being placed with an experienced preceptor, anything that strengthens that pipeline benefits you directly. If the PRECEPT Nurses Act succeeds, you’re part of the downstream benefit: more preceptors = more opportunities = potentially faster graduation and entry into practice.
Final thoughts
The PRECEPT Nurses Act represents a smart, targeted attempt to solve a very real bottleneck in nursing education and workforce development: the shortage of preceptors. If it passes, we could see meaningful improvements in the number and consistency of clinical mentorship opportunities, which is a win for both nursing students (including NP students) and for the health system at large.
That said, passage is not yet assured, and implementation will determine how meaningful the credit is. For NP students: it pays to stay informed, engage early with your program’s clinical placement office, and be proactive in aligning your own expectations around preceptor selection, documentation, and site logistics.
In short: watch this space. The PRECEPT Nurses Act may not be the only change you experience, but it’s one of the more hopeful policy shifts for the NP/clinical education world.
This could help NP Students who have to pay out of pocket or use a service like Preceptor Tree or Clerkship America.
