Amends TCA Title 67.

This bill enacts the "Mental Health Preceptor Tax Incentive Program," which authorizes a person or private business employing at least one community-based faculty preceptor ("employer") to be allowed a credit against the employer's franchise and excise taxes paid for each employed preceptor who completes a preceptorship rotation that has a focus on mental health services. As used in this bill, "community-based faculty preceptor" means an individual who is (i) a licensed physician, an advanced practice registered nurse, or a physician assistant, and whose professional practice is primarily limited to providing mental health services; or (ii) a licensed psychologist or a psychiatrist. This bill provides that credit is accrued on a per preceptorship rotation basis as follows: (1) For each community-based faculty preceptor who is a physician, in the amount of $500 for the first, second, or third preceptorship rotation that focuses on mental health services and $1,000 for each subsequent rotation through the tenth preceptorship rotation that focuses on mental health services completed in the same calendar year for a maximum credit of $8,500; and (2) For each community-based faculty preceptor who is an advanced practice registered nurse or a physician assistant, in the amount of $375 for the first, second, or third preceptorship rotation that focuses on mental health services and $750 for each subsequent rotation through the tenth preceptorship rotation that focuses on mental health services completed in the same calendar year for a maximum credit of $6,375. However, this bill prohibits credit from accruing for more than 10 preceptorship rotations that focus on mental health services per community-based faculty preceptor in a calendar year. Additionally, this bill clarifies that in no event must the total amount of the tax credit for a taxable year exceed the taxpayer's franchise and excise tax liability. A taxpayer is also not allowed to apply a tax credit earned against a prior or succeeding year's tax liability. ELIGIBILITY In order to receive the credit, this bill requires an employer to do the following: (1) Claim the credit on the employer's franchise and excise tax returns for the tax year in which preceptorship rotations that focus on mental health services are completed; (2) Certify that the community-based faculty preceptor for whom credit is claimed did not receive payment during the tax year from any source for the training of the medical student, advanced practice registered nurse student, or physician assistant student; and (3) Submit supporting documentation as prescribed by the commissioner of revenue. APPLICABILITY This bill applies to tax years beginning on or after January 1, 2025.