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, these preceptors must not be dependents of another individual and must have completed a preceptorship of at least four weeks in New Mexico. The credit can be claimed for the taxable year in which the preceptorship is performed, with a maximum limit of $1,000. Taxpayers must apply for the credit using forms prescribed by the department, which will also require certification from the institution where the preceptorship took place. 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 tasked with including this tax credit in the tax expenditure budget as part of its reporting requirements.