HOUSE BILL 474
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
William "Ed" Boykin
FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE
AN ACT
RELATING TO TAXATION; ENACTING SECTIONS OF THE INCOME TAX ACT AND CORPORATE INCOME AND FRANCHISE TAX ACT TO PROVIDE A CREDIT FOR GROSS RECEIPTS TAX PAID ON RECEIPTS FROM THE PROVISION OF CERTAIN MEDICAL AND OTHER HEALTH SERVICES BY PHYSICIANS; AMENDING HEALTH WORKFORCE PROVISIONS; MAKING APPROPRIATIONS.
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] CREDIT--PHYSICIANS--GROSS RECEIPTS TAX PAID ON RECEIPTS FROM THE PROVISION OF MEDICAL AND OTHER HEALTH SERVICES--REFUND.--
A. A physician who files an individual New Mexico income tax return may claim a credit for state and local option gross receipts taxes paid in the taxable year for which the credit is claimed on receipts of the taxpayer from the provision of medical and other health services provided in those areas of New Mexico eligible to be served by the New Mexico health service corps, pursuant to the Health Service Corps Act, or on receipts of a pass-through business entity of which the taxpayer is an owner from the provision by physicians of medical and other health services in an underserved area. If the taxes were paid by a pass-through business entity of which the taxpayer is an owner, the amount of the gross receipts taxes paid by the taxpayer shall be determined to be the taxes paid on that portion of the taxable gross receipts of the pass-through business entity from the provision of medical and other health services by physicians that represents the taxpayer's proportionate ownership share of the pass-through business entity.
B. The credit provided by this section may only be deducted from the taxpayer's New Mexico income tax liability for the taxable year. Any portion of the tax credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for three consecutive taxable years.
C. As used in this section:
(1) "owner" means a partner in a partnership not taxed as a corporation for federal income tax purposes for the taxable year, a shareholder of an S corporation or of a corporation other than an S corporation that is not taxed as a corporation for federal income tax purposes for the taxable year, a member of a limited liability company or any similar person holding an ownership interest in a pass-through business entity;
(2) "pass-through business entity" means any business association other than:
(a) a sole proprietorship;
(b) an estate or trust; or
(c) a corporation, limited liability company, partnership or other entity not a sole proprietorship taxed as a corporation for federal income tax purposes for the taxable year;
(3) "physician" means a medical doctor licensed as a physician to practice medicine pursuant to the provisions of the Medical Practice Act or a person licensed as an osteopathic physician pursuant to the provisions of Chapter 61, Article 10 NMSA 1978; and
(4) "underserved area" means an area of New Mexico eligible to be served by the New Mexico health service corps."
Section 2. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] EXEMPTION--INCOME FOR CERTAIN HEALTH CARE PROVIDERS.--Stipend income received by a physician from the New Mexico health service corps pursuant to the Health Service Corps Act and income and awards received pursuant to the Health Professional Loan Repayment Act are exempt from state income tax."
Section 3. A new section of the Corporate Income and Franchise Tax Act is enacted to read:
"[NEW MATERIAL] CREDIT--GROSS RECEIPTS TAX PAID ON RECEIPTS FROM MEDICAL AND HEALTH SERVICES PROVIDED BY PHYSICIANS--REFUND.--
A. A taxpayer that files a corporate income tax return may claim a credit for state and local option gross receipts taxes paid in the taxable year for which the credit is being claimed on receipts of the taxpayer from the provision of medical and other health services by physicians in an underserved area.
B. The credit provided by this section may only be deducted from the taxpayer's corporate income tax liability for the taxable year. Any portion of the tax credit provided by this section that remains unused at the end of the taxpayer's taxable year may be carried forward for three consecutive taxable years.
C. As used in this section, "physician" means a medical doctor licensed as a physician to practice medicine pursuant to the provisions of the Medical Practice Act or a person licensed as an osteopathic physician pursuant to the provisions of Chapter 61, Article 10 NMSA 1978.
D. As used in this section, "underserved area" means an area of New Mexico eligible to be served by the New Mexico health service corps."
Section 4. Section 21-1-26.8 NMSA 1978 (being Laws 1995, Chapter 144, Section 1) is amended to read:
"21-1-26.8. HEALTH PROFESSION ADVISORY COMMITTEE--CREATED--DUTIES.--
A. The "health profession advisory committee" is created to advise the commission on higher education on matters relating to the administration of student loan programs for health professionals. [The health profession advisory committee replaces the medical shortage area committee.]
B. The health profession advisory committee shall be composed of a representative of the department of health; a representative of the New Mexico health policy commission; and representatives of public post-secondary health and medical training programs, underserved health and medical area providers, recruiting and placement organizations and professional health and medical associations. Members shall be appointed by the commission on higher education pursuant to the policies and procedures of the commission.
C. The health profession advisory committee shall:
(1) designate health professional shortage areas and acute shortage areas of the state;
(2) designate those fields of specialization within the practice of medicine in which the state is experiencing an acute shortage;
[(2)] (3) make recommendations to the commission on higher education on applicants for medical, osteopathic, nursing and allied health loan for service programs and loan repayment programs; and
[(3)] (4) give advice or other assistance to the commission as requested."
Section 5. Section 21-22D-3 NMSA 1978 (being Laws 1995, Chapter 144, Section 18) is amended to read:
"21-22D-3. DEFINITIONS.--As used in the Health Professional Loan Repayment Act:
A. "commission" means the commission on higher education;
B. "health professional" means a [primary care] physician, optometrist, podiatrist, physician's assistant, dentist, nurse, member of an allied health profession as defined in the Allied Health Student Loan for Service Act or a licensed or certified health professional as determined by the commission; and
C. "loan" means a grant of money to defray the costs incidental to a health education, under a contract between the federal government or a commercial lender and a health professional, requiring either repayment of principal and interest or repayment in services."
Section 6. Section 21-22D-4 NMSA 1978 (being Laws 1995, Chapter 144, Section 19) is amended to read:
"21-22D-4. COMMISSION POWERS AND DUTIES--PARTICIPANT ELIGIBILITY--QUALIFICATIONS.--
A. The commission may grant an award to repay loans obtained for health [educational] education expenses of a health professional upon such terms and conditions as may be imposed by regulations of the commission.
B. Applicants shall be licensed or certified to practice in New Mexico as health professionals and shall be bona fide citizens and residents of the United States and of New Mexico. Applicants shall declare their intent to practice as health professionals within designated health professional shortage areas and acute shortage areas of the state.
C. The commission shall make a full and careful investigation of the ability, character and qualifications of each applicant and determine fitness to become a health professional in the health professional loan repayment program.
D. The commission shall assist selected health professionals in locating practice positions in designated health professional shortage areas and acute shortage areas."
Section 7. APPROPRIATIONS--HEALTH PROFESSIONAL RECRUITMENT.--
A. Five hundred thousand dollars ($500,000) is appropriated from the general fund to the health professional loan repayment fund for expenditure in fiscal year 2005 and subsequent fiscal years for the purpose of making loans pursuant to the Health Professional Loan Repayment Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.
B. Seven hundred fifty thousand dollars ($750,000) is appropriated from the general fund to the department of health for expenditure in fiscal year 2005 to contract for expanded recruitment of physicians, dentists, physician assistants, nurse practitioners, certified nurse midwives, nurses and clinical nurse specialists for employment statewide by or through state agencies. Any unexpended or unencumbered balance remaining at the end of fiscal year 2005 shall revert to the general fund.
Section 8. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2004.
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