HB 249

                                1  HOUSE BILL 249
                                2     57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4  Jenifer Jones and Pamelya Herndon
                                5
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                                10  AN ACT
                                11   RELATING TO TAXATION; CREATING THE ELECTRONIC MEDICAL RECORDS
                                12   TAX CREDIT.
                                13
                                14   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
                                15        SECTION 1.    A new section of the Income Tax Act is enacted
                                16   to read:
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                                17        "[NEW MATERIAL] CREDIT--ELECTRONIC MEDICAL RECORDS TAX
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                                18   CREDIT.--
                                19  A.   For a taxable year beginning on or after January
                                20   1, 2026 and prior to January 1, 2031, a taxpayer who files an
                                21   individual New Mexico income tax return, is not a dependent of
                                22   another individual and is a health care practitioner who makes
                                23   payments for an electronic medical records system to use in the
                                24   scope of the taxpayer's practice may claim a credit against the
                                25   taxpayer's tax liability imposed pursuant to the provisions of
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                                1    the Income Tax Act.     The credit authorized pursuant to this
                                2    section may be referred to as the "electronic medical records
                                3    tax credit".
                                4  B.   The amount of the tax credit shall be in an
                                5    amount equal to the amount of payments made by a health care
                                6    practitioner for an electronic medical records system during a
                                7    taxable year for which the tax credit is claimed, not to exceed
                                8    six thousand dollars ($6,000) for that taxable year.
                                9  C.   To receive a tax credit, a health care
                                10   practitioner shall:
                                11  (1)   provide health care for at least one
                                12   thousand five hundred eighty-four hours during a taxable year;
                                13  (2)   provide services in a health care
                                14   institution employing ten or fewer health care practitioners;
                                15   and
                                16  (3)   maintain a record of the payments made for
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                                17   an electronic medical records system that shall be made
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                                18   available for review at the request of the department of health
                                19   or the department.
                                20  D.   A taxpayer shall apply for certification of
                                21   eligibility for the tax credit from the department of health on
                                22   forms and in the manner prescribed by that department.      Except
                                23   as provided in Subsection G of this section, only one tax
                                24   credit shall be certified per taxpayer per taxable year per
                                25   electronic medical records system for which payments are being
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                                1    made.   If the department of health determines that the taxpayer
                                2    meets the requirements of this section, that department shall
                                3    issue a dated certificate of eligibility to the taxpayer
                                4    providing the amount of tax credit for which the taxpayer is
                                5    eligible.   The department of health shall provide the
                                6    department with certificates of eligibility issued pursuant to
                                7    this subsection in an electronic format at regularly agreed-
                                8    upon intervals.
                                9  E.   A taxpayer who has claimed the rural health care
                                10   practitioner tax credit shall not be eligible for the
                                11   electronic medical records tax credit.
                                12  F.   That portion of the tax credit that exceeds a
                                13   taxpayer's tax liability in the taxable year in which the tax
                                14   credit is claimed shall not be refunded and shall not be
                                15   carried forward to subsequent taxable years.
                                16  G.   A taxpayer may be allocated the right to claim
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                                17   the tax credit provided by this section in proportion to the
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                                18   taxpayer's ownership interest if the taxpayer owns an interest
                                19   in a business entity that is taxed for federal income tax
                                20   purposes as a partnership or limited liability company and that
                                21   business entity has met all of the requirements to be eligible
                                22   for the credit.    The total credit claimed by all members of the
                                23   partnership or limited liability company shall not exceed the
                                24   maximum amount of the credit allowed pursuant to this section.
                                25  H.   A taxpayer allowed a tax credit pursuant to this
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                                1    section shall report the amount of the tax credit separately in
                                2    a manner required by the department.
                                3  I.   The tax credit provided by this section shall be
                                4    included in the tax expenditure budget pursuant to Section
                                5    7-1-84 NMSA 1978, including the annual aggregate cost of the
                                6    tax credit.
                                7  J.   As used in this section:
                                8  (1)   "electronic medical records system" means
                                9    a digital records system used to document the health care
                                10   information of a health care practitioner's patients;
                                11  (2)   "health care information" means
                                12   information related to the past, present or future physical or
                                13   mental health or condition of an individual; the provision of
                                14   health care to an individual; or the past, present or future
                                15   payment for the provision of health care to an individual;
                                16  (3)   "health care institution" means an
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                                17   institution, a facility or an agency licensed, certified or
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                                18   otherwise authorized or permitted by law to provide health care
                                19   in the ordinary course of business; and
                                20  (4)   "health care practitioner" means:
                                21  (a)   a midwife that is a:   1) certified
                                22   nurse-midwife licensed by the board of nursing as a registered
                                23   nurse and licensed by the public health division of the
                                24   department of health to practice nurse-midwifery as a certified
                                25   nurse-midwife; or 2) licensed midwife licensed by the public
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                                1    health division of the department of health to practice
                                2    licensed midwifery;
                                3  (b)   an osteopathic physician licensed
                                4    pursuant to the provisions of the Medical Practice Act;
                                5  (c)   a physician licensed pursuant to the
                                6    provisions of the Medical Practice Act or a physician assistant
                                7    licensed pursuant to the provisions of the Physician Assistant
                                8    Act;
                                9  (d)   a psychologist licensed pursuant to
                                10   the provisions of the Professional Psychologist Act;
                                11  (e)   a registered nurse licensed pursuant
                                12   to the provisions of the Nursing Practice Act;
                                13  (f)   a pharmacist licensed pursuant to
                                14   the provisions of the Pharmacy Act;
                                15  (g)   a licensed clinical social worker or
                                16   a licensed independent social worker licensed pursuant to the
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                                17   provisions of the Social Work Practice Act;
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                                18  (h)   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; and
                                23  (i)   a physical therapist licensed
                                24   pursuant to the provisions of the Physical Therapy Act."
                                25  SECTION 2.   APPLICABILITY.--The provisions of this act
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                                1    apply to taxable years beginning on or after January 1, 2026.
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