PHYSICIAN INCOME TAX

SB 296 creates a $50,000 annual tax credit for physicians in New Mexico who have completed medical residency, practice full-time in the state, and hold outstanding medical student loans. The credit applies to up to five consecutive taxable years beginning January 1, 2025, and can be used to offset state income tax liability or refunded if it exceeds the tax owed. Physicians must obtain eligibility certification from the state's higher education department and claim the credit within three years of receiving certification. This policy directly supports medical professionals by reducing the financial burden of student debt while encouraging retention in New Mexico.