HEALTH CARE GROSS RECEIPTS DEDUCTION

SB 13 extends and expands a tax deduction for healthcare providers in New Mexico. It postpones the sunset date for this deduction from 2028 to 2031 and adds coinsurance, copayments, and deductibles paid directly by patients to the list of deductible expenses. The bill affects licensed healthcare practitioners (like doctors, dentists, and therapists) and their associations who provide services through managed care organizations. These providers can now reduce their taxable income by deducting patient-paid portions of their fees, rather than just certain insurance payments. The change applies only to "commercial contract services" under managed care plans, not Medicare or Medicaid services.