Summary:

 House Bill 52 (HB 52) proposes an expansion of the Rural Health Care Practitioner Tax Credit to include additional eligible health care practitioners. The bill revises the list of qualifying professions, such as speech-language pathologists, occupational therapists, and chiropractic physicians, among others. If passed, HB 52 will take effect on July 1, 2025. 

Legislation Overview:

 House Bill 52 (HB 52) modifies Section 7-2-18.22 NMSA 1978 to broaden the scope of the Rural Health Care Practitioner Tax Credit. The credit incentivizes health care practitioners to provide services in rural and underserved areas of New Mexico. The bill expands eligibility to several new health care professions, including licenses practical nurses, emergency medical technicians, paramedics, speech-language pathologists, occupational therapists, and chiropractic physicians.

Eligible practitioners who provide health care services for at least 1,584 hours annually in a rural health care underserved area may claim a tax credit of up to $5,000 or $3,000, depending on their profession. Practitioners providing at least 792 but fewer than 1,584 hours annually qualify for 50% of the credit amount. Practitioners must apply to the Department of Health (DoH) for certification, which includes verifying clinical practice details and qualifying hours worked. DoH issues certificates to eligible practitioners, and the Taxation and Revenue Department (TRD) oversees the tax credit application process.

The legislation also mandates an annual report by TRD detailing the number of taxpayers utilizing the credit, the total amount of credits claimed, and an evaluation of the credit’s cost. This report must be presented to the Revenue Stabilization and Tax Policy Committee and the Legislative Finance Committee. HB 52 aims to enhance access to health care services in rural areas by expanding eligibility criteria for the tax credit program.
 

Current Law:

 Under the current law, the Rural Health Care Practitioner Tax Credit is limited to specific health care professions such as physicians, dentists, and nurse practitioners. Eligible practitioners who provide services in rural and underserved areas may claim a credit of $5,000 or $3,000, depending on their profession and hours worked. Practitioners must work at least 1,584 hours annually to claim the full credit or 792 hours for half the credit. The Department of Health certifies practitioners, while the Taxation and Revenue Department administers the credit.