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.
Sponsors
Legislative Progress
IntroducedMr. Crapo (for himself, Ms. Smith, Mr. Boozman, Ms. Collins, …
Summary
What This Bill Does
The Rural Veterinary Workforce Act changes the tax code to make student loan forgiveness tax-free for veterinarians who participate in federal or state programs designed to bring veterinary services to rural and underserved areas. Currently, when veterinarians have their loans forgiven under these programs, they must pay income tax on the forgiven amount. This bill eliminates that tax burden starting in 2026.
Who Benefits and How
Veterinarians in rural areas or underserved communities benefit most directly. When they participate in loan repayment programs (like the federal program under the National Agricultural Research, Extension, and Teaching Policy Act or similar state programs), they will no longer owe income tax on the forgiven loan amounts. This makes these programs significantly more valuable - for example, a veterinarian who gets 50,000 in loans forgiven might save 12,000-18,000 in federal income taxes they would otherwise owe. Rural and agricultural communities also benefit by making it more financially attractive for veterinarians to work in their areas, improving access to animal health services that are critical for livestock operations and pet care.
Who Bears the Burden and How
The federal government bears the primary burden through lost tax revenue. Every dollar of veterinary student loans forgiven under these programs will no longer generate tax income for the Treasury. The exact cost depends on how many veterinarians participate in these programs and how much debt is forgiven, but the Congressional Budget Office would need to estimate the revenue loss. This cost is borne by all taxpayers through either reduced government services or increased deficit spending.
Key Provisions
- Expands IRC Section 108(f)(4) to include veterinary loan repayment/forgiveness programs alongside existing exclusions for teachers, lawyers, and other public service professions
- Covers both federal programs (under the National Agricultural Research, Extension, and Teaching Policy Act) and any state-run veterinary loan programs intended to increase veterinary access
- Takes effect for loan forgiveness received in tax years beginning after December 31, 2025
- Makes the forgiven loan amounts completely exempt from federal income tax, treating them the same as other public service loan forgiveness programs already in the tax code
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Amends the Internal Revenue Code to exclude veterinary student loan repayment/forgiveness assistance from taxable income, encouraging veterinarians to serve in underserved rural areas
Policy Domains
Legislative Strategy
"Incentivize veterinary professionals to work in rural and underserved areas by making loan forgiveness tax-free"
Likely Beneficiaries
- Veterinarians in rural areas
- Veterinarians in underserved communities
- State veterinary workforce programs
- Federal veterinary loan programs
Likely Burden Bearers
- Federal Treasury (tax revenue loss)
- IRS (administrative complexity)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "irs"
- → Internal Revenue Service (administers tax code)
- "state_programs"
- → State veterinary loan repayment/forgiveness programs
- "federal_program"
- → National Agricultural Research, Extension, and Teaching Policy Act program (7 U.S.C. 3151a)
Key Definitions
Terms defined in this bill
Section 108(f)(4) of IRC - includes federal programs under National Agricultural Research, Extension, and Teaching Policy Act (7 U.S.C. 3151a) and any State loan repayment or forgiveness program intended to increase access to veterinary services
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology