The bill amends the existing Rural Health Care Practitioner Tax Credit in New Mexico to increase the credit amounts available to eligible health care practitioners. Specifically, the maximum credit for physicians, osteopathic physicians, dentists, psychologists, podiatric physicians, and optometrists is raised from $5,000 to $15,000, while the credit for pharmacists, dental hygienists, physician assistants, and other specified health care professionals is increased from $3,000 to $9,000. Additionally, the bill stipulates that practitioners who provide health care services for at least 792 hours but less than 1,584 hours in a rural health care underserved area are eligible for half of the respective tax credit amounts.

Furthermore, the bill modifies the reporting requirements for the tax credit. Instead of compiling an annual report on the tax credit, the credit will now be included in the tax expenditure budget, which will detail the total annual aggregate cost of the credit. The provisions of this act will apply to taxable years beginning on or after January 1, 2025.

Statutes affected:
introduced version: 7-2-18.22