The proposed bill establishes a new tax credit known as the "health care preceptor income tax credit" for taxpayers who are preceptors employed by or volunteering at accredited New Mexico institutions of higher education. To qualify, these individuals must not be dependents of another person and must have completed a preceptorship in New Mexico. The credit is capped at $1,000 for any preceptorships performed within the taxable year in which the credit is claimed. Taxpayers can only claim one credit per year and must submit an application, including certification from the institution where the preceptorship was conducted.

Additionally, if the credit exceeds the taxpayer's tax liability for the year, the excess amount can be carried forward to offset future tax liabilities until fully utilized. The bill also outlines definitions for key terms such as "eligible graduate student," "eligible medical resident," "eligible professional degree," "preceptor," and "preceptorship." The provisions of this act will take effect for taxable years beginning on or after January 1, 2026.