Bill > HB226

This bill increases the Rural Health Care Practitioner Tax Credit, a financial incentive designed to encourage healthcare professionals to work in rural and underserved areas of New Mexico. The legislation significantly raises the maximum tax credit amounts: for physicians, dentists, and other high-level practitioners, the credit increases from $5,000 to $15,000 for those working at least 1,584 hours in a rural health care underserved area, with a half credit available for those working between 792-1,584 hours. Similarly, for professionals like pharmacists, nurses, and therapists, the credit increases from $3,000 to $9,000 under the same hour-based conditions. To claim the credit, healthcare practitioners must apply through the Department of Health, which will verify their eligibility and issue a certificate. Practitioners must attach this certificate to their New Mexico income tax return, and any excess credit can be carried forward for three consecutive tax years. The bill also updates reporting requirements, now mandating that the credit be included in the tax expenditure budget. These changes will apply to taxable years beginning on or after January 1, 2025, with the goal of attracting and retaining healthcare professionals in rural New Mexico communities.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=226&year=25