Bipartisan bill aims to ease tax burden for rural veterinarians

A bipartisan bill aimed at addressing the shortage of rural veterinary services has been introduced in Congress.

The Rural Veterinary Workforce Act would exempt student loan repayments from taxable income for veterinarians working in underserved areas, similar to an existing provision for physicians. The goal is to encourage more veterinarians to serve in regions where they are most needed.

“By addressing the burdensome taxes on the Veterinary Medicine Loan Repayment Program, this legislation would allow more veterinarians to serve in the rural and underserved communities most in need and help ensure ranchers and farmers have access to these essential veterinary services,” said bill co-sponsor Idaho Sen. Mike Crapo.

Many rural states struggle with a shortage of veterinarians, which impacts agriculture and public health. To address this issue, Congress created the Veterinary Medicine Loan Repayment Program (VMLRP), which helps veterinarians repay student loans in exchange for working in underserved communities for three years.

However, the program is subject to a significant federal withholding tax, reducing its effectiveness. The proposed legislation would remove this tax burden, making it more feasible for veterinarians to practice in areas that might otherwise be unaffordable.

“This record shortage causes serious harm to the health of animals and the public,” said Minnesota Sen. Tina Smith, co-sponsor of the bill. “Providing additional funding to the Veterinary Medicine Loan Repayment Program and updating the tax code to better serve veterinarians will allow more qualified vets to do vital work with our animals in underserved communities.”

The bill is co-sponsored by Sens. Mike Crapo (R-Idaho), Tina Smith (D-Minn.), John Boozman (R-Ark.), Susan Collins (R-Maine), Cindy Hyde-Smith (R-Miss.), Cynthia Lummis (R-Wyo.), Jerry Moran (R-Kan.), Jim Risch (R-Idaho), Chris Coons (D-Del.), Kirsten Gillibrand (D-N.Y.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), and Jon Ossoff (D-Ga.).

Reps. Adrian Smith (R-Neb.) and John Larson (D-Conn.) have introduced a companion bill in the U.S. House.

»Related: A growing crisis: America’s shortage of large-animal veterinarians