Bill Summary
The "Rural Veterinary Workforce Act" is a proposed amendment to the Internal Revenue Code of 1986 aimed at supporting veterinarians who participate in student loan repayment or forgiveness programs. Specifically, it allows for the exclusion of certain financial assistance from taxable income for individuals in these programs. This assistance is intended to enhance access to veterinary services in rural areas by incentivizing veterinarians to work in regions that may lack sufficient veterinary care. The amendments will take effect for taxable years starting after December 31, 2025, ensuring that the financial benefits provided under these programs do not increase the tax burden on recipients.
Possible Impacts
The "Rural Veterinary Workforce Act" could have the following effects on people:
1. **Financial Relief for Veterinary Graduates**: The exclusion for assistance provided to participants in veterinary student loan repayment or forgiveness programs means that graduates of veterinary schools who participate in these programs will not have to count that assistance as taxable income. This could significantly reduce their overall tax liability, providing them with financial relief and allowing them to allocate more of their income towards living expenses, savings, or further investments in their veterinary practices.
2. **Increased Access to Veterinary Services in Rural Areas**: By incentivizing veterinarians to participate in loan repayment or forgiveness programs, the legislation may lead to an increase in the number of veterinarians willing to work in underserved rural areas. This could enhance access to veterinary care for rural communities, improving animal health and welfare, and potentially benefiting local economies that rely on agriculture and livestock.
3. **Attraction of New Veterinary Graduates to Rural Practices**: The financial incentives created by the loan repayment and forgiveness programs could make rural veterinary positions more attractive to new graduates. As more graduates consider these positions due to reduced financial burdens, the veterinary workforce in rural areas may become more robust, which can lead to better health outcomes for animals and could also encourage new businesses or services in these communities, ultimately benefiting both the veterinary profession and the rural economy.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1163 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1163
To amend the Internal Revenue Code of 1986 to provide for an exclusion
for assistance provided to participants in certain veterinary student
loan repayment or forgiveness programs.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 27, 2025
Mr. Crapo (for himself, Ms. Smith, Mr. Boozman, Ms. Collins, Mr. Coons,
Mrs. Gillibrand, Mrs. Hyde-Smith, Mr. King, Ms. Klobuchar, Ms. Lummis,
Mr. Moran, Mr. Ossoff, Mr. Risch, and Mr. Marshall) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for an exclusion
for assistance provided to participants in certain veterinary student
loan repayment or forgiveness programs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Veterinary Workforce Act''.
SEC. 2. EXCLUSION FOR ASSISTANCE PROVIDED TO PARTICIPANTS IN CERTAIN
VETERINARY STUDENT LOAN REPAYMENT OR FORGIVENESS
PROGRAMS.
(a) In General.--Paragraph (4) of section 108(f) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``or'' after ``such Act,'',
(2) by striking the period at the end and inserting ``,
under section 1415A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3151a), or
under any other State loan repayment or loan forgiveness
program that is intended to provide for increased access to
veterinary services in such State.'', and
(3) by striking ``state'' in the heading and inserting
``other''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts received by an individual in taxable years beginning
after December 31, 2025.
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