HB 142

                                1  HOUSE BILL 142
                                2     57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Sarah Silva and Anita Gonzales
                                5
                                6
                                7
                                8
                                9
                                10  AN ACT
                                11   RELATING TO TAXATION; CHANGING THE NAME OF THE RURAL HEALTH
                                12   CARE PRACTITIONER TAX CREDIT; EXPANDING THE CREDIT TO INCLUDE A
                                13   HEALTH CARE PRACTITIONER PROVIDING SERVICES IN AN URBAN HEALTH
                                14   CARE UNDERSERVED AREA; INCREASING THE AMOUNT OF CREDIT THAT CAN
                                15   BE CLAIMED FOR A HEALTH CARE PRACTITIONER IN A RURAL HEALTH
                                16   CARE UNDERSERVED AREA; REDUCING THE NUMBER OF PRACTICE HOURS
[bracketed material] = delete
                                17   REQUIRED FOR AN EMERGENCY MEDICAL PHYSICIAN TO BE ELIGIBLE FOR
underscored material = new
                                18   THE CREDIT.
                                19
                                20   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
                                21        SECTION 1.    Section 7-2-18.22 NMSA 1978 (being Laws 2007,
                                22   Chapter 361, Section 2, as amended) is amended to read:
                                23        "7-2-18.22.    [RURAL] HEALTH CARE PRACTITIONER TAX
                                24   CREDIT.--
                                25  A.   A taxpayer who files an individual New Mexico
                                     .232663.1
                                1    tax return, who is not a dependent of another individual, who
                                2    is [an eligible] a health care practitioner and who has
                                3    provided health care services in New Mexico in a rural health
                                4    care underserved area or an urban health care underserved area
                                5    in a taxable year may claim a credit against the tax liability
                                6    imposed by the Income Tax Act.    The credit provided in this
                                7    section may be referred to as the "[rural] health care
                                8    practitioner tax credit".
                                9  B.   The [rural] health care practitioner tax credit
                                10   may be claimed [and allowed] by a health care practitioner
                                11   described in Subparagraphs (a) through (f) of Paragraph (2) of
                                12   Subsection H of this section in an amount [that shall not
                                13   exceed:
                                14  (1)   five thousand dollars ($5,000) for all
                                15   physicians, osteopathic physicians, dentists, psychologists,
                                16   podiatric physicians and optometrists who qualify pursuant to
[bracketed material] = delete
                                17   the provisions of this section and have provided health care
underscored material = new
                                18   during a taxable year for at least one thousand five hundred
                                19   eighty-four hours at a practice site located in an approved
                                20   rural health care underserved area.    Eligible health care
                                21   practitioners listed in this paragraph who provided health care
                                22   services for at least seven hundred ninety-two hours but less
                                23   than one thousand five hundred eighty-four hours at a practice
                                24   site located in an approved rural health care underserved area
                                25   during a taxable year are eligible for one-half of the tax
                                     .232663.1
                                                                    - 2 -
                                1    credit amount; and
                                2  (2)   three thousand dollars ($3,000) for all
                                3    pharmacists, dental hygienists, physician assistants, certified
                                4    registered nurse anesthetists, certified nurse practitioners,
                                5    clinical nurse specialists, registered nurses, midwives,
                                6    licensed clinical social workers, licensed independent social
                                7    workers, professional mental health counselors, professional
                                8    clinical mental health counselors, marriage and family
                                9    therapists, professional art therapists, alcohol and drug abuse
                                10   counselors and physical therapists who qualify pursuant to the
                                11   provisions of this section and have provided health care during
                                12   a taxable year for at least one thousand five hundred eighty-
                                13   four hours at a practice site located in an approved rural
                                14   health care underserved area.    Eligible health care
                                15   practitioners listed in this paragraph who provided health care
                                16   services for at least seven hundred ninety-two hours but less
[bracketed material] = delete
                                17   than one thousand five hundred eighty-four hours at a practice
underscored material = new
                                18   site located in an approved rural health care underserved area
                                19   during a taxable year are eligible for one-half of the tax
                                20   credit amount] equal to the following amounts if the health
                                21   care practitioner provides health care in the following areas
                                22   for the following number of hours during the taxable year in
                                23   which the credit is claimed:
                                24  (1)   ten thousand dollars ($10,000) for:
                                25  (a)   at least one thousand five hundred
                                     .232663.1
                                                                     - 3 -
                                1    eighty-four hours at a practice site located in a rural health
                                2    care underserved area; and
                                3  (b)   if the health care practitioner is
                                4    an emergency medical physician, at least one thousand four
                                5    hundred forty hours at a practice site located in a rural or
                                6    urban health care underserved area;
                                7  (2)   five thousand dollars ($5,000) for:
                                8  (a)   at least seven hundred ninety-two
                                9    hours but less than one thousand five hundred eighty-four hours
                                10   at a practice site located in a rural health care underserved
                                11   area;
                                12  (b)   at least one thousand five hundred
                                13   eighty-four hours at a practice site located in an urban health
                                14   care underserved area; and
                                15  (c)   if the health care practitioner is
                                16   an emergency medical physician, at least seven hundred twenty
[bracketed material] = delete
                                17   hours but less than one thousand four hundred forty hours in a
underscored material = new
                                18   rural or urban health care underserved area; and
                                19  (3)   two thousand five hundred dollars ($2,500)
                                20   for at least seven hundred ninety-two hours but less than one
                                21   thousand five hundred eighty-four hours at a practice site
                                22   located in an urban health care underserved area.
                                23  C.   The health care practitioner tax credit may be
                                24   claimed by a health care practitioner described in
                                25   Subparagraphs (g) through (m) of Paragraph (2) of Subsection H
                                     .232663.1
                                                                     - 4 -
                                1    of this section in an amount equal to the following amounts if
                                2    the health care practitioner provides health care in the
                                3    following areas for the following number of hours during the
                                4    taxable year in which the credit is claimed:
                                5  (1)    seven thousand five hundred dollars
                                6    ($7,500) for at least one thousand five hundred eighty-four
                                7    hours at a practice site located in a rural health care
                                8    underserved area;
                                9  (2)    three thousand dollars ($3,000) for at
                                10   least one thousand five hundred eighty-four hours at a practice
                                11   site located in an urban health care underserved area;
                                12  (3)    three thousand seven hundred fifty dollars
                                13   ($3,750) for at least seven hundred ninety-two hours but less
                                14   than one thousand five hundred eighty-four hours at a practice
                                15   site located in a rural health care underserved area; and
                                16  (4)    one thousand five hundred dollars ($1,500)
[bracketed material] = delete
                                17   for at least seven hundred ninety-two hours but less than one
underscored material = new
                                18   thousand five hundred eighty-four hours in an urban health care
                                19   underserved area.
                                20  [C.] D.    Before [an eligible] a health care
                                21   practitioner may claim the [rural] health care practitioner tax
                                22   credit, the practitioner shall submit a completed application
                                23   to the department of health that describes the practitioner's
                                24   clinical practice and contains additional information that the
                                25   department of health may require.       The department of health
                                     .232663.1
                                                                     - 5 -
                                1    shall determine whether [an eligible] a health care
                                2    practitioner qualifies for the [rural health care practitioner]
                                3    tax credit and shall issue a certificate to [each qualifying
                                4    eligible] a health care practitioner.     The department of health
                                5    shall provide the taxation and revenue department appropriate
                                6    information for all [eligible] health care practitioners to
                                7    whom certificates are issued in a secure manner on regular
                                8    intervals agreed upon by both the taxation and revenue
                                9    department and the department of health.
                                10  [D.] E.    A taxpayer claiming the credit provided by
                                11   this section shall submit a copy of the certificate issued by
                                12   the department of health with the taxpayer's New Mexico income
                                13   tax return for the taxable year.     If the amount of the credit
                                14   claimed exceeds a taxpayer's tax liability for the taxable year
                                15   in which the credit is being claimed, the excess may be carried
                                16   forward for three consecutive taxable years.
[bracketed material] = delete
                                17  [E.] F.    A taxpayer allowed a tax credit pursuant to
underscored material = new
                                18   this section shall claim the credit on forms and in a manner
                                19   required by the department.
                                20  [F.] G.    The tax credit provided by this section
                                21   shall be included in the tax expenditure budget pursuant to
                                22   Section 7-1-84 NMSA 1978, including the annual aggregate cost
                                23   of the tax credit.
                                24  [G.] H.    As used in this section:
                                25  (1)    "emergency medical physician" means a
                                     .232663.1
                                                                     - 6 -
                                1    physician licensed pursuant to the provisions of the Medical
                                2    Practice Act who provides care to patients in an emergency
                                3    setting;
                                4  [(1)] (2)    "[eligible] health care
                                5    practitioner" means:
                                6  (a)    a dentist [or dental hygienist]
                                7    licensed pursuant to the Dental Health Care Act;
                                8  [(b)   a midwife that is a:   1) certified
                                9    nurse-midwife licensed by the board of nursing as a registered
                                10   nurse and licensed by the public health division of the
                                11   department of health to practice nurse-midwifery as a certified
                                12   nurse-midwife; or 2) licensed midwife licensed by the public
                                13   health division of the department of health to practice
                                14   licensed midwifery;
                                15  (c)] (b)    an optometrist licensed
                                16   pursuant to the provisions of the Optometry Act;
[bracketed material] = delete
                                17  [(d)] (c)    an osteopathic physician
underscored material = new
                                18   licensed pursuant to the provisions of the Medical Practice
                                19   Act;
                                20  [(e)] (d)    a physician licensed pursuant
                                21   to the provisions of the Medical Practice Act or a physician
                                22   assistant licensed pursuant to the provisions of the Physician
                                23   Assistant Act;
                                24  [(f)] (e)    a podiatric physician licensed
                                25   pursuant to the provisions of the Podiatry Act;
                                     .232663.1
                                                                     - 7 -
                                1  [(g)] (f)   a psychologist licensed
                                2    pursuant to the provisions of the Professional Psychologist
                                3    Act;
                                4  (g)   a midwife that is a:   1) certified
                                5    nurse-midwife licensed by the board of nursing as a registered
                                6    nurse and licensed by the public health division of the
                                7    department of health to practice nurse-midwifery as a certified
                                8    nurse-midwife; or 2) licensed midwife licensed by the public
                                9    health division of the department of health to practice
                                10   licensed midwifery;
                                11  (h)   a registered nurse licensed pursuant
                                12   to the provisions of the Nursing Practice Act;
                                13  (i)   a pharmacist licensed pursuant to
                                14   the provisions of the Pharmacy Act;
                                15  (j)   a licensed clinical social worker or
                                16   a licensed independent social worker licensed pursuant to the
[bracketed material] = delete
                                17   provisions of the Social Work Practice Act;
underscored material = new
                                18  (k)   a professional mental health
                                19   counselor, a professional clinical mental health counselor, a
                                20   marriage and family therapist, an alcohol and drug abuse
                                21   counselor or a professional art therapist licensed pursuant to
                                22   the provisions of the Counseling and Therapy Practice Act;
                                23   [and]
                                24  (l)   a physical therapist licensed
                                25   pursuant to the provisions of the Physical Therapy Act; and
                                     .232663.1
                                                                   - 8 -
                                1  (m)   a dental hygienist licensed pursuant
                                2    to the Dental Health Care Act;
                                3  [(2)] (3)    "health care underserved area" means
                                4    a geographic area or practice location in which it has been
                                5    determined by the department of health, through the use of
                                6    indices and other standards set by the department of health,
                                7    that sufficient health care services are not being provided;
                                8  [(3)] (4)    "practice site" means a private
                                9    practice, public health clinic, hospital, public or private
                                10   nonprofit primary care clinic or other health care service
                                11   location in a health care underserved area; [and
                                12  (4)] (5)    "rural" means a rural county or an
                                13   unincorporated area of a partially rural county [as] that is
                                14   designated by the health resources and services administration
                                15   of the United States department of health and human services to
                                16   be a health care underserved area; and
[bracketed material] = delete
                                17  (6)   "urban" means a metropolitan area that is
underscored material = new
                                18   designated by the health resources and services administration
                                19   of the United States department of health and human services to
                                20   be a health care underserved area."
                                21        SECTION 2.    APPLICABILITY.--The provisions of this act
                                22   apply to taxable years beginning on and after January 1, 2026.
                                23  - 9 -
                                24
                                25
                                     .232663.1