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MarylandSB 04662026 Regular SessionSenateWALLET

Income Tax - Credit for Physician Preceptors in Areas With Health Care Workforce Shortages - Alterations

Sponsored By: Nancy J. King (Democratic)

Signed by Governor

Taxes - IncomeIncome TaxJob Training -see also- Continuing Ed; Vocational RehabMedical SchoolsPhysicians -see also- MedExmnrs; Pediatr; Psychiatrists etc.StudentsTax CreditsTime

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Easier tax credit access for physician mentors

The law takes effect July 1, 2026, and applies to tax years beginning after December 31, 2025. Licensed Maryland physicians who train students without pay in designated Maryland health care shortage areas can qualify. The student's medical school or postgraduate training program can now be outside Maryland. An accredited medical school must authorize the program, which pairs physicians with students at accredited medical schools or postgraduate trainees. Physicians must complete at least three community-based training rotations, each requiring at least 90 hours instead of 100. The credit provides $1,000 per qualifying rotation, up to $10,000 per taxpayer annually, and cannot exceed Maryland income tax owed.

Cap on unused physician tax credit authority

Beginning July 1, 2026, Maryland's Department of Health faces a $100,000 cap on unused credit authority carried from all prior fiscal years. This limits the agency's authority to issue certificates, not an individual physician's credit carryforward. The program authorizes $100,000 in certificates per taxable year; unused authority can be issued in the next taxable year. Applications are approved first-come, first-served, with approval or denial notices due within 45 days of receipt. The Department must report prior-year certificates to the Comptroller by January 31 annually and report credit use to the General Assembly. It must also adopt application, approval, and eligibility-monitoring rules in consultation with the Governor's Workforce Development Board.

Sponsors & Cosponsors

Sponsor

  • Nancy J. King

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 208 • No: 97

House vote • 4/10/2026

Floor Amendment {463226/1 (Delegate Grammer) Rejected

Yes: 36 • No: 91 • Other: 10

House vote • 4/10/2026

Third Reading Passed

Yes: 127 • No: 6 • Other: 4

Senate vote • 3/19/2026

Third Reading Passed

Yes: 45 • No: 0

Actions Timeline

  1. Approved by the Governor - Chapter 199

    4/28/2026

  2. Returned Passed

    4/10/2026Senate

  3. Third Reading Passed (127-6)

    4/10/2026House

  4. Floor Amendment {463226/1 (Delegate Grammer) Rejected (36-91)

    4/10/2026House

  5. Favorable Adopted Second Reading Passed

    4/8/2026House

  6. Favorable Report by Ways and Means

    4/8/2026House

  7. Hearing 3/31 at 1:00 p.m. (Ways and Means)

    3/25/2026House

  8. Referred Ways and Means Health

    3/20/2026House

  9. Third Reading Passed (45-0)

    3/19/2026Senate

  10. Second Reading Passed with Amendments

    3/18/2026Senate

  11. Favorable with Amendments {793426/1 Adopted

    3/18/2026Senate

  12. Favorable with Amendments Report by Budget and Taxation

    3/18/2026Senate

  13. Hearing 2/18 at 1:00 p.m.

    2/4/2026Senate

  14. First Reading Budget and Taxation

    2/2/2026Senate

Bill Text

  • Enacted

    4/28/2026

    PDF

  • Third Reading

    3/18/2026

    PDF

  • First Reading

    2/2/2026

    PDF

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