Effort Under Way to Maximize VMLRP Awards Through Tax Exemption
The shortage of veterinary care in some communities could have dire consequences for both human and animal health, as well as public safety, animal welfare, disease surveillance and economic development. To help combat the shortages, Congress originally authorized the Veterinary Medicine Loan Repayment Program (VMLRP) in 2003 and just recently funded it with $9.6 million. The first awards will be made by the end of fiscal year 2010. Unfortunately, as the rules stand now, all VMLRP awards are taxed at 39 percent. While participants will not bear this tax burden – the Secretary of Agriculture will pay the taxes directly from appropriated funds.
Maximizing each dollar that Congress appropriates for the loan repayment program and ensuring that designated shortage areas receive the veterinary services as quickly as possible is of paramount importance to the AVMA. Veterinary loan repayment and forgiveness programs incentivize our nation’s veterinary workforce to serve on the front lines of animal agriculture, providing veterinary care to rural farms and ranches. This veterinary care protects food safety and public health, improves animal health and welfare, promotes sustainable economic development in rural communities, and helps safeguard our homeland.
The Association has been actively pursuing a federal income tax exemption for payments received under the VMLRP and similar state programs that further the goal of encouraging veterinarians to practice in the smaller and rural communities where their services are desperately needed. The Veterinary Medicine Loan Repayment Program Enhancement Act will be introduced in the U.S. Senate on July 21 by Senators Tim Johnson D-SD and Mike Crapo R-ID along with original cosponsors Sam Brownback R-KS and Jim Risch R-ID. It is anticipated that additional senators will join the bill prior to introduction.
One hundred and eighteen organizations have agreed to join the AVMA’s tax-exemption campaign by signing onto a statement of support.
One hundred and twenty-three organizations have agreed to join the AVMA’s tax-exemption campaign by signing a statement of support and now we need your support as well. Tell your Senator to cosponsor the Veterinary Medicine Loan Repayment Program Enhancement Act.
Take action now to make sure your Senators support this legislation