Maryland Code § TG-10-736

Section TG-10-736
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(a) (1) In this section the following words have the meanings indicated.
(2) "Department" means the Department of Housing and Community
Development.
(3) "Donation" means an irrevocable gift worth $500 or more of:
(i) cash; or
(ii) publicly traded securities.
(4) "Eligible community foundation" means an organization that:
(i) is exempt from taxation under § 501(c)(3) of the Internal
Revenue Code;
(ii) is commonly known as a community trust, fund,
endowment, or foundation or by another similar name that conveys the concept of a
capital or endowment fund to support charitable activities in the community or area
that it serves;
(iii) satisfies the public support test of § 170(b)(1)(A)(vi) of the
Internal Revenue Code and regulations adopted under that section; and
(iv) is in compliance with national standards for United States
community foundations established by the Community Foundations National
Standards Board within the Council on Foundations.
(5) "Qualified permanent endowment fund" means a fund that:
(i) is held in perpetuity by an eligible community foundation;
(ii) is used for the benefit of charitable causes in the State; and

(iii) has an annual spending rate of 5% or less calculated using
a 12-quarter trailing average of the total amount of the fund.
(b) (1) Subject to the limitations of this section, for the taxable year in
which a taxpayer makes a donation to a qualified permanent endowment fund at an
eligible community foundation, the taxpayer may claim a credit against the State
income tax in the amount stated on the tax credit certificate issued under subsection
(c) of this section.
(2) If the credit allowed under this section in any taxable year
exceeds the State income tax for that taxable year, any unused credit may be carried
forward and applied for succeeding taxable years until the earlier of:
(i) the full amount of the credit is used; or
(ii) the expiration of the fifth year after the taxable year for
which the credit was allowed.
(c) (1) On application by a taxpayer, the Department shall issue a credit
certificate in the amount of 25% of a proposed donation to a qualified permanent
endowment fund at an eligible community foundation that meets the requirements
of this section.
(2) The application shall contain:
(i) the names of the taxpayer, the eligible community
foundation, and the qualified permanent endowment fund to which the donation will
be made;
(ii) the taxable year in which the donation will be made;
(iii) the amount of the donation; and
(iv) any other information that the Department requires.
(3) For any taxable year, the maximum amount of tax credit stated
in the tax credit certificate may not exceed $50,000.
(4) The Department shall:
(i) reserve for each taxable year at least 10% of the available
credits for donations of $30,000 or less; and

(ii) approve all applications that qualify for a tax credit
certificate under this subsection:
1. on a first-come, first-served basis; and
2. in a timely manner.
(5) (i) For each taxable year, the total amount of tax credit
certificates certified by the Department under this section may not exceed $250,000.
(ii) If the aggregate amount of tax credit certificates
authorized under this section during a taxable year total less than the amount
authorized under this paragraph, any excess amount may be authorized under tax
credit certificates for the next taxable year.
(d) On or before January 31 of each taxable year, the Department shall
report to the State Department of Assessments and Taxation and the Comptroller
the donations that the Department has approved for tax credit certificates under this
section during the prior taxable year.
(e) The Department shall adopt regulations to carry out the provisions of
this section, including the criteria and procedures for application for, approval of, and
monitoring eligibility for the tax credit authorized under this section.
§10-738. IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTER 416 OF 2025 //
(a) (1) In this section the following words have the meanings indicated.
(2) "Department" means the Maryland Department of Health.
(3) "Licensed physician" means an individual who is licensed to
practice medicine under Title 14 of the Health Occupations Article.
(4) "Preceptorship program" means an organized system of clinical
experience that, for the purpose of attaining specified learning objectives, pairs an
enrolled student of a Liaison Committee on Medical Education-accredited medical
school in the State or an individual in a postgraduate medical training program in
the State with a licensed physician who meets the qualifications as a preceptor.
(b) (1) Subject to the limitations of this section, a licensed physician may
claim a credit against the State income tax in the amount stated on the tax credit
certificate issued under subsection (c) of this section for the taxable year in which the

licensed physician served without compensation as a physician preceptor in a
preceptorship program authorized by an accredited medical school in the State and
worked:
(i) a minimum of three rotations, each consisting of 100 hours
of community-based clinical training; and
(ii) in an area of the State identified as having a health care
workforce shortage by the Department, in consultation with the Governor's
Workforce Development Board.
(2) (i) The total amount of the credit allowed under this section
for any taxable year may not exceed the State income tax imposed for that taxable
year.
(ii) Any unused amount of the credit for any taxable year may
not be carried over to any other taxable year.
(c) (1) On application by a licensed physician, the Department shall
issue a credit certificate in the amount of $1,000 for each student rotation of the
minimum number of hours required under subsection (b)(1)(i) of this section for which
the licensed physician served as a physician preceptor without compensation.
(2) The application shall contain:
(i) the name of the licensed physician;
(ii) information identifying the physician preceptorship in
which the licensed physician participated;
(iii) the number and names of the students for whom the
individual served as a physician preceptor without compensation; and
(iv) any other information that the Department requires.
(3) For any taxable year, the amount of tax credit stated in the tax
credit certificate may not exceed $10,000.
(4) The Department shall:
(i) approve all applications that qualify for a tax credit
certificate under this subsection on a first-come, first-served basis; and

(ii) notify a taxpayer within 45 days of receipt of the taxpayer's
application of its approval or denial.
(5) (i) For each taxable year, the total amount of tax credit
certificates that may be issued by the Department under this section may not exceed
$100,000.
(ii) If the aggregate amount of tax credit certificates issued
under this section during a taxable year total less than the amount authorized under
this paragraph, any excess amount may be issued under tax credit certificates in the
next taxable year.
(d) On or before January 31 of each taxable year, the Department shall:
(1) report to the Comptroller on the tax credit certificates issued
under this section during the prior taxable year; and
(2) report to the General Assembly, in accordance with § 2-1257 of
the State Government Article, on the utilization of the credit established under this
section.
(e) The Department, in consultation with the Governor's Workforce
Development Board, shall adopt regulations to carry out the provisions of this section,
including the criteria and procedures for application for, approval of, and monitoring
eligibility for the tax credit authorized under this section.
§10-739. IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTER 416 OF 2025 //
(a) (1) In this section the following words have the meanings indicated.
(2) "Department" means the Maryland Department of Health.
(3) "Licensed physician" means an individual who is licensed to
practice medicine under Title 14 of the Health Occupations Article.
(4) "Nurse practitioner" has the meaning stated in § 8-101 of the
Health Occupations Article.
(5) "Preceptorship program" means an organized system of clinical
experience that, for the purpose of attaining specified learning objectives, pairs a
nurse practitioner student enrolled in a nursing education program that is recognized

by the State Board of Nursing with a nurse practitioner or licensed physician who
meets the qualifications as a preceptor.
(b) (1) Subject to the limitations of this section, a nurse practitioner or
licensed physician may claim a credit against the State income tax in the amount
stated on the tax credit certificate issued under subsection (c) of this section for the
taxable year in which the nurse practitioner or licensed physician served without
compensation as a preceptor in a preceptorship program approved by the State Board
of Nursing and worked:
(i) a minimum of three rotations, each consisting of at least 90
hours of community-based clinical training; and
(ii) in an area of the State identified as having a health care
workforce shortage by the Department, in consultation with the Governor's
Workforce Development Board.
(2) (i) The total amount of the credit allowed under this section
for any taxable year may not exceed the State income tax imposed for that taxable
year.
(ii) Any unused amount of the credit for any taxable year may
not be carried over to any other taxable year.
(c) (1) On application by a nurse practitioner or licensed physician, the
Department shall issue a credit certificate in the amount of $1,000 for each nurse
practitioner student rotation of the minimum number of hours required under
subsection (b)(1)(i) of this section for which the nurse practitioner or licensed
physician served as a preceptor without compensation.
(2) The application shall contain:
(i) the name of the nurse practitioner or licensed physician;
(ii) information identifying the preceptorship in which the
nurse practitioner or licensed physician participated;
(iii) the number and names of the nurse practitioner students
for whom the individual served as a preceptor without compensation; and
(iv) any other information that the Department requires.
(3) For any taxable year, the amount of tax credit stated in the tax
credit certificate may not exceed $10,000.

(4) The Department shall:
(i) approve all applications that qualify for a tax credit
certificate under this subsection on a first-come, first-served basis; and
(ii) notify a taxpayer within 45 days of receipt of the taxpayer's
application of its approval or denial.
(5) (i) For each taxable year, the total amount of tax credit
certificates that may be issued by the Department under this section may not exceed
the lesser of:
1. the total funds in the Nurse Practitioner
Preceptorship Tax Credit Fund for that year; or
2. $100,000.
(ii) If the aggregate amount of tax credit certificates issued
under this section during a taxable year total less than the amount authorized under
this paragraph, any excess amount may be issued under tax credit certificates in the
next taxable year.
(d) (1) In this section, "Fund" means the Nurse Practitioner
Preceptorship Tax Credit Fund established under paragraph (2) of this subsection.
(2) There is a Nurse Practitioner Preceptorship Tax Credit Fund.
(3) The Department shall administer the Fund.
(4) The purpose of the Fund is to offset the costs of the tax credit
available under this section.
(5) The Fund is a special continuing, nonlapsing fund that is not
subject to § 7-302 of the State Finance and Procurement Article.
(6) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund.
(7) The Fund consists of:
(i) revenue distributed to the Fund under § 8-206 of the
Health Occupations Article;

(ii) money appropriated in the State budget to the Fund; and
(iii) any other money from any other source accepted for the
benefit of the Fund.
(8) The money in the Fund shall be invested and reinvested by the
State Treasurer, and interest and earnings shall be credited to the General Fund of
the State.
(9) (i) Except as otherwise provided in this paragraph, money
credited or appropriated to the Fund shall remain in the Fund.
(ii) 1. Within 15 days after the end of each calendar
quarter, the Department shall notify the Comptroller as to each credit certificate
issued during the quarter.
2. On notification that a credit certificate has been
issued by the Department, the Comptroller shall transfer an amount equal to the
credit amount stated in the tax credit certificate from the Fund to the General Fund
of the State.
(e) On or before January 31 each taxable year, the Department shall:
(1) report to the Comptroller on the tax credit certificates issued
under this section during the prior taxable year; and
(2) report to the General Assembly, in accordance with § 2-1257 of
the State Government Article, on the utilization of the credit established under this
section.
(f) The Department, in consultation with the Governor's Workforce
Development Board, shall adopt regulations to carry out the provisions of this section,
including the criteria and procedures for application for, approval of, and monitoring
eligibility for the tax credit authorized under this section.
§10-739.1. IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2030 PER CHAPTER 416 OF 2025 //
(a) (1) In this section the following words have the meanings indicated.
(2) "Advanced practice registered nurse" has the same meaning
stated in § 8-101 of the Health Occupations Article.

(3) "Department" means the Maryland Department of Health.
(4) "Licensed practical nurse" has the meaning stated in § 8-101 of
the Health Occupations Article.
(5) "Preceptorship program" means an organized system of clinical
experience that, for the purpose of attaining specified learning objectives, pairs a
licensed practical nurse or registered nurse student enrolled in a nursing education
program that is recognized by the State Board of Nursing with a licensed practical
nurse, advanced practice registered nurse, or registered nurse who meets the
qualifications as a preceptor.
(6) "Registered nurse" has the meaning stated in § 8-101 of the
Health Occupations Article.
(b) (1) Subject to the limitations of this section, a licensed practical
nurse, advanced practice registered nurse, or registered nurse may claim a credit
against the State income tax in the amount stated on the tax credit certificate issued
under subsection (c) of this section for the taxable year in which the licensed practical
nurse, advanced practice registered nurse, or registered nurse served without
compensation as a preceptor in a preceptorship program approved by the State Board
of Nursing and worked:
(i) a minimum of three rotations, each consisting of at least 90
hours of community-based clinical training; and
(ii) in an area of the State identified as having a health care
workforce shortage by the Department, in consultation with the Governor's
Workforce Development Board.
(2) (i) The total amount of the credit allowed under this section
for any taxable year may not exceed the State income tax imposed for that taxable
year.
(ii) Any unused amount of the credit for any taxable year may
not be carried over to any other taxable year.
(c) (1) On application by a licensed practical nurse, advanced practice
registered nurse, or registered nurse, the Department shall issue a credit certificate
in the amount of $1,000 for each student rotation of the minimum number of hours
required under subsection (b)(1)(i) of this section for which the licensed practical
nurse, advanced practice registered nurse, or registered nurse served as a preceptor
without compensation.

(2) The application shall contain:
(i) the name of the applicant;
(ii) information identifying the preceptorship in which the
applicant participated;
(iii) the number and names of the students for whom the
individual served as a preceptor without compensation; and
(iv) any other information that the Department requires.
(3) For any taxable year, the amount of tax credit stated in the tax
credit certificate may not exceed $10,000.
(4) The Department shall:
(i) approve all applications that qualify for a tax credit
certificate under this subsection on a first-come, first-served basis; and
(ii) notify a taxpayer within 45 days of receipt of the taxpayer's
application of its approval or denial.
(5) (i) For each taxable year, the total amount of tax credit
certificates that may be issued by the Department under this section may not exceed
the lesser of:
1. the total funds in the Licensed Practical Nurse and
Registered Nurse Preceptorship Tax Credit Fund for that year; or
2. $100,000.
(ii) If the aggregate amount of tax credit certificates issued
under this section during a taxable year totals less than the amount authorized under
this paragraph, any excess amount may be issued under tax credit certificates in the
next taxable year.
(d) (1) In this section, "Fund" means the Licensed Practical Nurse and
Registered Nurse Preceptorship Tax Credit Fund established under paragraph (2) of
this subsection.
(2) There is a Licensed Practical Nurse and Registered Nurse
Preceptorship Tax Credit Fund.

(3) The Department shall administer the Fund.
(4) The purpose of the Fund is to offset the costs of the tax credit
available under this section.
(5) The Fund is a special, nonlapsing fund that is not subject to § 7-
302 of the State Finance and Procurement Article.
(6) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund.
(7) The Fund consists of:
(i) federal funding provided under:
1. the federal Coronavirus Aid, Relief, and Economic
Security Act;
2. the federal Consolidated Appropriations Act, 2021;
or
3. any other federal COVID-19 pandemic relief
funding;
(ii) money appropriated in the State budget to the Fund; and
(iii) any other money from any other source accepted for the
benefit of the Fund.
(8) The money in the Fund shall be invested and reinvested by the
State Treasurer, and interest and earnings shall be credited to the General Fund of
the State.
(9) (i) Except as otherwise provided in this paragraph, money
credited or appropriated to the Fund shall remain in the Fund.
(ii) 1. Within 15 days after the end of each calendar
quarter, the Department shall notify the Comptroller as to each credit certificate
issued during the quarter.
2. On notification that a credit certificate has been
issued by the Department, the Comptroller shall transfer an amount equal to the
credit amount stated in the tax credit certificate from the Fund to the General Fund
of the State.

(e) On or before January 31 each taxable year, the Department shall:
(1) report to the Comptroller on the tax credit certificates issued
under this section during the prior taxable year; and
(2) report to the General Assembly, in accordance with § 2-1257 of
the State Government Article, on the utilization of the credit established under this
section.
(f) The Department, in consultation with the Governor's Workforce
Development Board, shall adopt regulations to carry out the provisions of this section,
including the criteria and procedures for application for, approval of, and monitoring
eligibility for the tax credit authorized under this section.

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