S.1163 - Rural Veterinary Workforce Act (119th Congress)
Summary
S.1163, the Rural Veterinary Workforce Act, aims to amend the Internal Revenue Code of 1986 to provide tax exclusions for assistance received through veterinary student loan repayment or forgiveness programs. These programs are designed to incentivize veterinarians to practice in underserved rural areas. The bill specifically targets programs under section 1415A of the National Agricultural Research, Extension, and Teaching Policy Act of 1977, as well as other state loan repayment or forgiveness programs with the same goal.
Expected Effects
The primary effect of this bill would be to reduce the tax burden on veterinarians who receive loan repayment or forgiveness assistance for working in rural areas. This could encourage more veterinarians to practice in these areas, addressing a shortage of veterinary services. The change would apply to taxable years beginning after December 31, 2025.
Potential Benefits
- Increased Access to Veterinary Services: Encourages veterinarians to practice in underserved rural areas.
- Financial Relief for Veterinarians: Reduces the tax burden on those participating in loan repayment programs.
- Support for Rural Communities: Helps maintain the health and well-being of livestock and pets in rural areas.
- Attracts Talent: Makes rural veterinary practices more attractive to recent graduates.
- Addresses Shortages: Mitigates the shortage of veterinary professionals in rural regions.
Potential Disadvantages
- Potential Revenue Loss: The tax exclusion could lead to a slight decrease in federal tax revenue.
- Complexity: Adds a new layer of complexity to the tax code.
- Limited Scope: The benefits are limited to veterinarians participating in specific loan repayment programs.
- Administrative Burden: May require additional administrative oversight to ensure compliance.
- Potential for Abuse: There is a small risk that the program could be exploited if not properly monitored.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve access to veterinary services in rural areas, promoting the well-being of both animals and the people who depend on them. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill modifies the tax code to incentivize a specific behavior (practicing veterinary medicine in rural areas), which falls under Congress's enumerated powers.
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).