The proposed bill establishes a new tax credit known as the "electronic medical records tax credit" for health care practitioners in New Mexico. This credit is available for taxable years starting from January 1, 2026, to January 1, 2031, and allows eligible practitioners to claim a credit against their tax liability for payments made towards an electronic medical records system, with a maximum credit amount of $6,000 per taxable year. To qualify, practitioners must provide a minimum of 1,584 hours of health care services in a small health care institution (employing ten or fewer practitioners) and maintain records of their payments for the electronic medical records system.

Additionally, the bill outlines the application process for certification of eligibility through the Department of Health, stipulating that only one credit can be certified per taxpayer per taxable year for each electronic medical records system. It also specifies that taxpayers who have claimed the rural health care practitioner tax credit are ineligible for this new credit. Any portion of the credit exceeding the taxpayer's liability cannot be refunded or carried forward, and the total credit claimed by business entities taxed as partnerships or limited liability companies must not exceed the maximum allowed. The bill includes definitions for key terms related to the credit and mandates that the tax credit be included in the tax expenditure budget.