WASHINGTON, D.C. – Wyoming’s Senator John Barrasso has introduced legislation that will improve health care in rural Wyoming.

The bill will provide tax relief for doctors, nurses and other health professionals who receive state and local funds to help pay off student loans and commit to serving in rural communities.

“For years, state and local communities in Wyoming have teamed up to bring doctors, nurses and other health professionals to underserved rural areas by helping them pay off their student loans. It’s been a win-win for both,” said Barrasso.

“The IRS treats this state and local award money in certain states as taxable ordinary income. This practice is clearly counter productive and against the spirit of the arrangements.”

“Today, when so many Americans are struggling with the high cost of health care and with access to health care, we don’t need this roadblock. Why would we tax state and local dollars encouraging access to rural health?”

Senator Barrasso’s bill, titled the “Health Professionals State Loan Repayment Tax Relief Act,” has five cosponsors and seeks to level the playing field for Wyoming and at least 15 other states.

Among those eligible for tax relief would be doctors, nurses and physician assistants practicing in general internal medicine, pediatrics, surgery, obstetrics and psychiatry who agree to work in underserved rural communities. Also eligible would be certain dentists, pharmacists, occupational and physical therapists.

“By exempting these state student loan repayment programs from federal income taxes, Congress will ease financial distress upon participating health care professionals.” said Barrasso.