The bill proposes a new section of 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. This 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 definition of "health care practitioner" is specified in the bill and includes various licensed professionals such as chiropractic physicians, dentists, doctors of oriental medicine, optometrists, osteopathic physicians, physical therapists, physicians, podiatric physicians, and psychologists. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025, allowing time for implementation and awareness among the affected practitioners.