Sponsors (2)
The bill provides a targeted monthly tax credit to boost pay and recruitment for certain healthcare workers in shortage and VA facilities in the near term, but it excludes many low-paid caregivers, limits benefits for very-low-income workers, and creates administrative burdens and sunset-related uncertainty.
Healthcare workers who meet the eligibility rules at HPSA-designated facilities or VA facilities can receive up to $500 per month in a tax credit through 2030, increasing take-home pay and creating a targeted recruitment/retention incentive in shortage areas.
The credit phases out for taxpayers with MAGI above $200K/$400K, concentrating benefits on lower- and middle-income providers rather than high-income earners.
The bill requires a GAO study and clarifies the HPSA definition, producing evidence and consistent metrics that can inform better-targeted workforce incentives and potential improvements to boost staffing stability in underserved and VA settings.
Many lower-paid direct-care workers (personal-care, consumer-directed, intermediary, and some home health/hospice workers) are explicitly excluded, leaving frontline caregivers who deliver hands-on care without relief.
The credit is nonrefundable, so very low-income providers with little or no income tax liability may receive no or only partial benefit.
The stringent hourly and monthly-attendance requirement (≥80 hours in each of 8 months) will exclude part-time, intermittent, seasonal, or otherwise irregularly scheduled caregivers from the credit.
Based on analysis of 3 sections of legislative text.
Creates a nonrefundable $300–$500 monthly tax credit for licensed/certified health professionals who meet hourly and facility criteria (effective 2026–2030) with income caps and a GAO review.
Introduced March 9, 2026 by Claudia Tenney · Last progress March 9, 2026
Creates a new, temporary nonrefundable individual tax credit to pay licensed or certified health professionals who work in approved facilities and meet monthly hour thresholds, with credit amounts of $300–$500 per month depending on hours. The credit is limited by income, requires sustained monthly work (at least 80 hours in 8 months of the year), applies to taxable years 2026–2030, and directs the GAO to report to Congress by mid-2030 on effects in Health Professional Shortage Areas and VA medical facilities.