S.1548 - Nurse Corps Tax Parity Act of 2025 (119th Congress)
Summary
The Nurse Corps Tax Parity Act of 2025 (S.1548) aims to amend the Internal Revenue Code of 1986 to exclude certain Nurse Corps payments from gross income. This bill specifically targets payments received under section 846 of the Public Health Service Act, in addition to existing provisions under section 338B(g). The proposed changes would affect the tax treatment of these payments and qualified scholarships related to the Nurse Corps.
Expected Effects
If enacted, the bill would provide tax relief to individuals receiving payments through the Nurse Corps program. This would effectively increase the net compensation for nurses participating in the program. The changes would apply to taxable years beginning after the date of enactment.
Potential Benefits
- Increased Net Income for Nurses: By excluding Nurse Corps payments from gross income, nurses will have a higher take-home pay.
- Enhanced Recruitment and Retention: Tax benefits may attract more individuals to join the Nurse Corps and encourage current members to remain in service.
- Support for Healthcare Workforce: A stronger Nurse Corps can improve healthcare access and quality, especially in underserved areas.
- Simplification of Tax Filing: Nurses receiving these payments will experience a simpler tax filing process.
- Incentivizes Service: Provides an incentive for healthcare professionals to serve in critical roles.
Most Benefited Areas:
Potential Disadvantages
- Potential Revenue Loss: Excluding these payments from gross income could slightly reduce federal tax revenue.
- Complexity in Implementation: The IRS will need to update its guidelines and forms to reflect these changes, which could cause initial confusion.
- Limited Scope: The benefits are limited to those participating in specific Nurse Corps programs, potentially creating disparities with other healthcare professionals.
- Risk of Abuse: There is a small risk that individuals may attempt to improperly claim the exclusion.
- Administrative Burden: Additional administrative oversight may be required to ensure compliance.
Constitutional Alignment
The bill appears to align with the General Welfare Clause of the US Constitution, as it aims to improve public health by supporting the nursing workforce. Specifically, the preamble states the Constitution is intended to "promote the general Welfare". Article I, Section 8, Clause 1 grants Congress 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. This bill uses the power to lay taxes to promote the general welfare.
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).