54th legislature - STATE OF NEW MEXICO - first session, 2019
RELATING TO TAXATION; CREATING THE HEALTH CARE PRECEPTOR INCOME TAX CREDIT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] HEALTH CARE PRECEPTOR INCOME TAX CREDIT.--
A. A taxpayer who is not a dependent of another individual, who is a preceptor employed by a state educational institution as defined in Article 12, Section 11 of the constitution of New Mexico and who has performed a preceptorship of not less than four weeks in New Mexico may apply for, and the department may allow, a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act. The tax credit provided by this section may be referred to as the "health care preceptor income tax credit".
B. The health care preceptor income tax credit shall not exceed one thousand dollars ($1,000) for up to five preceptorships performed in the taxable year in which the credit is claimed.
C. A taxpayer may claim a health care preceptor income tax credit for the taxable year in which the taxpayer performs a preceptorship. To receive the tax credit, a taxpayer shall apply to the department on forms and in the manner prescribed by the department. The application shall include a certification made by the institution for which the taxpayer is employed and for which the preceptorship was performed.
D. That portion of a health care preceptor income tax credit that exceeds a taxpayer's tax liability in the taxable year in which the credit is claimed may be carried forward and applied against the taxpayer's income tax liability in succeeding years until the credit is exhausted.
E. A taxpayer allowed a tax credit pursuant to this section shall report the amount of the credit to the department in a manner required by the department.
F. The department shall compile an annual report on the health care preceptor income tax credit that shall include the number of taxpayers approved by the department to receive the credit, the aggregate amount of credits approved and any other information necessary to evaluate the effectiveness of the credit. Each year that the credit is in effect, the department shall present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the tax credit.
G. As used in this section:
(1) "eligible graduate student" means an individual matriculating at the graduate level at any accredited New Mexico institution of higher education seeking a degree in the areas of doctor of medicine, doctor of osteopathy, advanced nursing practice, doctor of dental surgery, pharmacy, psychology, psychiatry or doctor of dental medicine or as a physician assistant;
(2) "eligible professional degree" means a degree or certificate that fulfills a requirement to practice as a medical doctor, osteopathic physician, advanced practice nurse, physician assistant, dentist, pharmacist, psychologist or psychiatrist;
(3) "preceptor" means an individual licensed as a medical doctor, osteopathic physician, advanced practice nurse, physician assistant, dentist, pharmacist, psychologist or psychiatrist; and
(4) "preceptorship" means an uncompensated period of supervised clinical training during which a preceptor provides a program of personalized instruction, training and supervision to an eligible graduate student to enable the student to obtain an eligible professional degree."
SECTION 2. APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2019.