H.R.3145 - Nurse Corps Tax Parity Act of 2025 (119th Congress)
Summary
H.R.3145, the Nurse Corps Tax Parity Act of 2025, aims to amend the Internal Revenue Code of 1986 to exclude certain Nurse Corps payments from gross income. This bill specifically targets payments received through the Nurse Corps program, seeking to provide tax relief to nurses participating in this initiative. The proposed changes affect sections 108(f) and 117(c)(2) of the Internal Revenue Code, with an effective date for amounts received in taxable years beginning after the enactment of the Act.
Expected Effects
The likely effect of this bill is to reduce the tax burden on nurses who receive payments through the Nurse Corps program. This could incentivize more nurses to participate in the program, potentially addressing nursing shortages in underserved areas. By excluding these payments from gross income, the bill effectively increases the net compensation for participating nurses.
Potential Benefits
- Increased Nurse Recruitment: Tax exemption may attract more nurses to the Nurse Corps.
- Improved Healthcare Access: More nurses in underserved areas can improve access to healthcare.
- Financial Relief for Nurses: Reduces the tax burden on nurses serving in critical roles.
- Enhanced Nurse Retention: May encourage nurses to remain in the Nurse Corps longer.
- Positive Impact on Public Health: A stronger nursing workforce can lead to better public health outcomes.
Potential Disadvantages
- Potential Revenue Loss: Excluding these payments from gross income could reduce government tax revenue.
- Complexity in Tax Code: Further amendments to the tax code can create complexity.
- Fairness Concerns: Other healthcare professionals may argue for similar tax treatment.
- Administrative Burden: Implementing the changes may create an administrative burden for the IRS.
- Limited Scope: The benefits are limited to nurses in the Nurse Corps, potentially excluding other deserving healthcare workers.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare access by supporting nurses. Specifically, the preamble states the goal to "promote the general Welfare". Article I, Section 8 grants Congress the power to lay and collect taxes, but this bill proposes an exemption, which falls within that power. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).