Effort Under Way to Maximize VMLRP Awards Through Tax Exemption

By Gina Luke, Assistant Director

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 veterinarians receiving awards under the program will have their awards taxed at 39 percent.

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. It is anticipated that the Veterinary Medicine Loan Repayment Program Enhancement Act will be introduced in the U.S. Senate on July 21. The AVMA is still seeking a champion for companion legislation in the House. If you know your U.S. Representative and think he or she might be interested in sponsoring this bill, please talk with them about its merits and pass their name along to Gina Luke.

More than 100 organizations have agreed to join the AVMA's tax-exemption campaign by signing onto a statement of support. An official executive officer of any organization that wishes to be added to the statement should also contact Gina Luke by July 19. Similar statements of support have proven to be instrumental in gaining traction for the legislation and are may be published as part of the Congressional Record upon the legislation's introduction. More information about the Veterinary Medicine Loan Repayment Program Enhancement Act can be found here.