The proposed bill establishes a new tax credit known as the "health care preceptor income tax credit" for taxpayers who are preceptors employed by accredited New Mexico institutions of higher education. To qualify for this credit, the preceptor must not be a dependent of another individual and must have completed a preceptorship of at least four weeks in New Mexico. The maximum credit allowed is $1,000 for preceptorships performed in the taxable year in which the credit is claimed. Taxpayers must apply for the credit using forms prescribed by the department, which will require certification from the institution where the preceptorship was conducted. Any portion of the credit that exceeds the taxpayer's tax liability can be carried forward to future tax years until fully utilized.

Additionally, the bill outlines definitions for key terms such as "eligible graduate student," "eligible professional degree," "preceptor," and "preceptorship," ensuring clarity in the application of the tax credit. The provisions of this act will take effect for taxable years beginning on or after January 1, 2025. The department is also required to include this tax credit in the tax expenditure budget, thereby ensuring transparency and accountability in its implementation.