HOUSE BILL 275

54th legislature - STATE OF NEW MEXICO - second session, 2020

INTRODUCED BY

Gail Armstrong and Doreen Y. Gallegos and Rebecca Dow

 

 

 

 

 

AN ACT

RELATING TO TAXATION; ALLOWING ADDITIONAL HEALTH CARE PRACTITIONERS TO CLAIM THE RURAL HEALTH CARE PRACTITIONER TAX CREDIT; INCREASING THE AMOUNT OF CREDIT FOR CERTAIN REGISTERED NURSES AND PHYSICIAN ASSISTANTS; REQUIRING THE TAXATION AND REVENUE DEPARTMENT TO COMPILE AND PRESENT A REPORT ON THE CREDIT; PROVIDING A TERMINATION DATE FOR THE CREDIT.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-2-18.22 NMSA 1978 (being Laws 2007, Chapter 361, Section 2) is amended to read:

     "7-2-18.22. [TAX CREDIT] RURAL HEALTH CARE PRACTITIONER TAX CREDIT.--

          A. For taxable years prior to January 1, 2025, a taxpayer who files an individual New Mexico tax return, who is not a dependent of another individual, who is [an eligible] a health care practitioner described in Subsections B and C of this section and who has provided health care services in New Mexico in a rural health care underserved area in a taxable year may claim a credit against the tax liability imposed by the Income Tax Act. The credit provided in this section may be referred to as the "rural health care practitioner tax credit".

          B. The rural health care practitioner tax credit may be claimed and allowed in an amount [that shall] not to exceed five thousand dollars ($5,000) for [all eligible physicians, osteopathic physicians, dentists, clinical psychologists, podiatrists and optometrists who qualify pursuant to the provisions of this section except the credit shall not exceed three thousand dollars ($3,000) for all eligible dental hygienists, physician assistants, certified nurse-midwives, certified registered nurse anesthetists, certified nurse practitioners and clinical nurse specialists]:

                (1) a certified nurse-midwife licensed by the department of health;

                (2) a chiropractic physician licensed pursuant to the Chiropractic Physician Practice Act;

                (3) a professional clinical mental health counselor, marriage and family therapist, associate marriage and family therapist or counselor, professional art therapist or alcohol and drug abuse counselor licensed pursuant to the provisions of the Counseling and Therapy Practice Act;

                (4) a dentist licensed pursuant to the Dental Health Care Act;

                (5) a physician or physician assistant licensed pursuant to the Medical Practice Act;

                (6) a certified nurse practitioner, certified registered nurse anesthetist or clinical nurse specialist licensed pursuant to the Nursing Practice Act;

                (7) a nutritionist or dietitian licensed pursuant to the Nutrition and Dietetics Practice Act;

                (8) a person licensed to practice naprapathy pursuant to the Naprapathic Practice Act;

                (9) a naturopathic doctor licensed pursuant to the Naturopathic Doctors' Practice Act;

                (10) an occupational therapist licensed pursuant to the Occupational Therapy Act;

                (11) an optometrist licensed pursuant to the Optometry Act;

                (12) an osteopathic physician licensed pursuant to the Osteopathic Medicine Act;

                (13) a pharmacist licensed pursuant to the Pharmacy Act;

                (14) a physical therapist licensed pursuant to the Physical Therapy Act;

                (15) a podiatrist licensed pursuant to the Podiatry Act;

                (16) a clinical psychologist licensed pursuant to the Professional Psychologist Act;

                (17) a licensed clinical social worker or licensed independent social worker licensed pursuant to the Social Work Practice Act; and

                (18) a speech-language pathologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act.

          C. The rural health care practitioner tax credit may be claimed and allowed in an amount not to exceed three thousand dollars ($3,000) for:

                (1) a lay midwife licensed by the department of health;

                (2) a doctor of oriental medicine licensed pursuant to the Acupuncture and Oriental Medicine Practice Act;

                (3) a dental hygienist licensed pursuant to the Dental Health Care Act;

                (4) a massage therapist licensed pursuant to the Massage Therapy Practice Act;

                (5) an osteopathic physician assistant licensed pursuant to the Osteopathic Medicine Act;

                (6) a physical therapist assistant licensed pursuant to the Physical Therapy Act; and

                (7) a respiratory care practitioner licensed pursuant to the Respiratory Care Act.

          [C.] D. To qualify for the rural health care practitioner tax credit, [an eligible health care practitioner] a taxpayer shall have provided health care during a taxable year for at least two thousand eighty hours at a practice site located in an approved rural health care underserved area. [An eligible rural health care practitioner] A taxpayer who provided health care services for at least one thousand forty hours but less than two thousand eighty hours at a practice site located in an approved rural health care underserved area during a taxable year is eligible for one-half of the credit amount.

          [D.] E. Before [an eligible health care practitioner] a taxpayer may claim the rural health care practitioner tax credit, the [practitioner] taxpayer shall submit an application to the department of health that describes the [practitioner's] taxpayer's clinical practice and contains additional information that the department of health may require. The department of health shall determine whether [an eligible health care practitioner] the taxpayer qualifies for the rural health care practitioner tax credit and shall issue a certificate to each [qualifying eligible health care practitioner] taxpayer that meets the requirements of this section. The department of health shall provide the taxation and revenue department appropriate information for all [eligible health care practitioners] taxpayers to whom certificates are issued.

          [E.] F. A taxpayer claiming the credit provided by this section shall submit a copy of the certificate issued by the department of health with the taxpayer's New Mexico income tax return for the taxable year in a manner required by the taxation and revenue department. If the amount of the credit claimed exceeds a taxpayer's tax liability for the taxable year in which the credit is being claimed, the excess may be carried forward for three consecutive taxable years.

          G. The taxation and revenue department shall compile an annual report on the rural health care practitioner 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 credit. The department shall present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the tax credit.

          [F.] H. As used in this section:

                [(1) "eligible health care practitioner" means:

                     (a) a certified nurse-midwife licensed by the board of nursing as a registered nurse and licensed by the public health division of the department of health to practice nurse-midwifery as a certified nurse-midwife;

                     (b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;

                     (c) an optometrist licensed pursuant to the provisions of the Optometry Act;

                     (d) an osteopathic physician licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978 or an osteopathic physician assistant licensed pursuant to the provisions of the Osteopathic Physicians' Assistants Act;

                     (e) a physician or physician assistant licensed pursuant to the provisions of Chapter 61, Article 6 NMSA 1978;

                     (f) a podiatrist licensed pursuant to the provisions of the Podiatry Act;

                     (g) a clinical psychologist licensed pursuant to the provisions of the Professional Psychologist Act; and

                     (h) a registered nurse in advanced practice who has been prepared through additional formal education as provided in Sections 61-3-23.2 through 61-3-23.4 NMSA 1978 to function beyond the scope of practice of professional registered nursing, including certified nurse practitioners, certified registered nurse anesthetists and clinical nurse specialists;

                (2)] (1) "health care underserved area" means a geographic area or practice location in which it has been determined by the department of health, through the use of indices and other standards set by the department of health, that sufficient health care services are not being provided;

                [(3)] (2) "practice site" means a private practice, public health clinic, hospital, public or private nonprofit primary care clinic or other health care service location in a health care underserved area; and

                [(4)] (3) "rural" means an area or location identified by the department of health as falling outside of an urban area."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2020.

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