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HOUSE BILL 52
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Miguel P. García
AN ACT
RELATING TO TAXATION; EXPANDING THE RURAL HEALTH CARE
PRACTITIONER TAX CREDIT TO INCLUDE ADDITIONAL ELIGIBLE HEALTH
CARE PRACTITIONERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-2-18.22 NMSA 1978 (being Laws 2007,
Chapter 361, Section 2, as amended) is amended to read:
"7-2-18.22. RURAL HEALTH CARE PRACTITIONER TAX CREDIT.--
A. A taxpayer who files an individual New Mexico
tax return, who is not a dependent of another individual, who
is an eligible health care practitioner and who has provided
health care services in New Mexico in a rural health care
underserved area in a taxable year may claim a credit against
the tax liability imposed by the Income Tax Act. The credit
provided in this section may be referred to as the "rural
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health care practitioner tax credit".
B. The rural health care practitioner tax credit
may be claimed and allowed in an amount that shall not exceed:
(1) five thousand dollars ($5,000) for all
physicians, osteopathic physicians, dentists, psychologists,
podiatric physicians and optometrists who qualify pursuant to
the provisions of this section and have provided health care
during a taxable year for at least one thousand five hundred
eighty-four hours at a practice site located in an approved
rural health care underserved area. Eligible health care
practitioners listed in this paragraph who provided health care
services for at least seven hundred ninety-two hours but less
than one thousand five hundred eighty-four hours at a practice
site located in an approved rural health care underserved area
during a taxable year are eligible for one-half of the tax
credit amount; and
(2) three thousand dollars ($3,000) for all
pharmacists, dental hygienists, physician assistants, certified
registered nurse anesthetists, certified nurse practitioners,
clinical nurse specialists, registered nurses, midwives,
licensed clinical social workers, licensed independent social
workers, professional mental health counselors, professional
clinical mental health counselors, marriage and family
therapists, professional art therapists, alcohol and drug abuse
counselors, licensed practical nurses, emergency medical
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technicians, paramedics, speech-language pathologists,
occupational therapists, chiropractic physicians and physical
therapists who qualify pursuant to the provisions of this
section and have provided health care during a taxable year for
at least one thousand five hundred eighty-four hours at a
practice site located in an approved rural health care
underserved area. Eligible health care practitioners listed in
this paragraph who provided health care services for at least
seven hundred ninety-two hours but less than one thousand five
hundred eighty-four hours at a practice site located in an
approved rural health care underserved area during a taxable
year are eligible for one-half of the tax credit amount.
C. Before an eligible health care practitioner may
claim the rural health care practitioner tax credit, the
practitioner shall submit an application to the department of
health that describes the practitioner's clinical practice and
contains additional information that the department of health
may require. The department of health shall determine whether
an eligible health care practitioner qualifies for the rural
health care practitioner tax credit and shall issue a
certificate to each qualifying eligible health care
practitioner. The department of health shall provide the
taxation and revenue department appropriate information for all
eligible health care practitioners to whom certificates are
issued in a secure manner on regular intervals agreed upon by
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both the taxation and revenue department and the department of
health.
D. A taxpayer claiming the credit provided by this
section shall submit a copy of the certificate issued by the
department of health with the taxpayer's New Mexico income tax
return for the taxable year. If the amount of the credit
claimed exceeds a taxpayer's tax liability for the taxable year
in which the credit is being claimed, the excess may be carried
forward for three consecutive taxable years.
E. A taxpayer allowed a tax credit pursuant to this
section shall report the amount of the credit to the department
in a manner required by the department.
F. The department shall compile an annual report on
the tax credit provided by this section that shall include the
number of taxpayers approved by the department to receive the
credit, the aggregate amount of credits approved and any other
information necessary to evaluate the credit. The department
shall present the report to the revenue stabilization and tax
policy committee and the legislative finance committee with an
analysis of the cost of the tax credit.
G. As used in this section:
(1) "eligible health care practitioner" means:
(a) a dentist or dental hygienist
licensed pursuant to the Dental Health Care Act;
(b) a midwife that is a: 1) certified
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nurse-midwife licensed by the board of nursing as a registered
nurse and licensed by the public health division of the
department of health to practice nurse-midwifery as a certified
nurse-midwife; or 2) licensed midwife licensed by the public
health division of the department of health to practice
licensed midwifery;
(c) an optometrist licensed pursuant to
the provisions of the Optometry Act;
(d) an osteopathic physician licensed
pursuant to the provisions of the Medical Practice Act;
(e) a physician licensed pursuant to the
provisions of the Medical Practice Act or a physician assistant
licensed pursuant to the provisions of the Physician Assistant
Act;
(f) a podiatric physician licensed
pursuant to the provisions of the Podiatry Act;
(g) a psychologist licensed pursuant to
the provisions of the Professional Psychologist Act;
(h) a registered nurse or a licensed
practical nurse licensed pursuant to the provisions of the
Nursing Practice Act;
(i) a pharmacist licensed pursuant to
the provisions of the Pharmacy Act;
(j) a licensed clinical social worker or
a licensed independent social worker licensed pursuant to the
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provisions of the Social Work Practice Act;
(k) a professional mental health
counselor, a professional clinical mental health counselor, a
marriage and family therapist, an alcohol and drug abuse
counselor or a professional art therapist licensed pursuant to
the provisions of the Counseling and Therapy Practice Act;
[and]
(l) a physical therapist licensed
pursuant to the provisions of the Physical Therapy Act;
(m) an emergency medical technician or
paramedic licensed pursuant to the Emergency Medical Services
Act;
(n) a speech-language pathologist
licensed pursuant to the Speech-Language Pathology, Audiology
and Hearing Aid Dispensing Practices Act;
(o) an occupational therapist licensed
pursuant to the Occupational Therapy Act; and
(p) a chiropractic physician licensed
pursuant to the Chiropractic Physician Practice Act;
(2) "health care underserved area" means a
geographic area or practice location in which it has been
determined by the department of health, through the use of
indices and other standards set by the department of health,
that sufficient health care services are not being provided;
(3) "practice site" means a private practice,
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public health clinic, hospital, public or private nonprofit
primary care clinic or other health care service location in a
health care underserved area; and
(4) "rural" means a rural county or an
unincorporated area of a partially rural county, as designated
by the health resources and services administration of the
United States department of health and human services."
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