This bill proposes a new section to the Income Tax Act that exempts health care practitioners from income tax for a period of ten years, specifically for taxable years ending prior to January 1, 2035. The exemption applies to residents who practice full-time in New Mexico and derive income from providing health care services within their professional scope. The bill also mandates that the cost of this tax credit be included in the tax expenditure budget, ensuring transparency regarding its financial impact.

The term "health care practitioner" is defined within the bill to encompass various licensed professionals, including chiropractic physicians, dentists, doctors of oriental medicine, optometrists, osteopathic physicians, physical therapists, physicians and physician assistants, podiatric physicians, and psychologists. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025.