INCREASE RURAL HEALTH CARE TAX CREDIT

HB 226 increases New Mexico's rural health care practitioner tax credit, raising the maximum credit from $5,000 to $15,000 for physicians, dentists, and similar providers (working 1,584+ hours in rural underserved areas), and from $3,000 to $9,000 for nurses, therapists, and other health professionals (also requiring 1,584+ hours). Practitioners must work at least 792 hours to qualify for half the credit amount. To claim the credit, providers must apply to the Department of Health for certification, which is then submitted with their tax return; excess credits can be carried forward for up to three years. The bill applies to taxable years beginning January 1, 2025, and requires the credit to be included in the state's tax expenditure budget.