New Mexico HB 38: RURAL HEALTH CARE PRACTITIONER ADDITIONS

Bill Text

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HOUSE BILL 38
56TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2023
INTRODUCED BY
Miguel P. Garcia and Tara Jaramillo and Gail Armstrong
AN ACT
RELATING TO TAXATION; ADDING CERTAIN PHARMACISTS, REGISTERED
NURSES, SOCIAL WORKERS, BEHAVIORAL HEALTH COUNSELORS AND
THERAPISTS AND PHYSICAL THERAPISTS TO THE RURAL HEALTH CARE
PRACTITIONER TAX CREDIT.
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) is amended to read:
"7-2-18.22. [TAX CREDIT] 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
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the tax liability imposed by the Income Tax Act. The credit
provided in this section may be referred to as the "rural
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
[eligible] physicians, osteopathic physicians, dentists,
clinical psychologists, podiatrists and optometrists who
qualify pursuant to the provisions of this section [except the
credit shall not exceed]; and
(2) three thousand dollars ($3,000) for all
[eligible] pharmacists, dental hygienists, physician
assistants, certified nurse-midwives, certified registered
nurse anesthetists, certified nurse practitioners, [and]
clinical nurse specialists, registered nurses, 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
and physical therapists who qualify pursuant to the provisions
of this section.
C. To qualify for the rural health care
practitioner tax credit, an eligible health care practitioner
shall have provided health care during a taxable year for at
least two thousand eighty hours at a practice site located in
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an approved rural health care underserved area. An eligible
rural health care practitioner who provided health care
services for at least one thousand forty hours but less than
two thousand eighty hours at a practice site located in an
approved rural health care underserved area during a taxable
year is eligible for one-half of the credit amount.
D. 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.
E. 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
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forward for three consecutive taxable years.
F. 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.
G. 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.
[F.] H. As used in this section:
(1) "eligible health care practitioner" means:
(a) a certified nurse-midwife licensed
by the board of nursing as a registered n