SENATE BILL 296

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Nicole Tobiassen and Carrie Hamblen and Pat Woods

and Jay C. Block and Natalie Figueroa

 

 

 

 

AN ACT

RELATING TO TAXATION; CREATING THE PHYSICIAN INCOME TAX CREDIT.

 

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--PHYSICIAN INCOME TAX CREDIT.--

          A. A taxpayer who is a physician and has completed a medical residency may claim a credit against the taxpayer's tax liability imposed pursuant to the Income Tax Act for up to five consecutive taxable years in which the taxpayer practices medicine full-time in New Mexico and has an outstanding balance of a student loan taken to defray the expenses of a medical education. The credit authorized pursuant to this section may be referred to as the "physician income tax credit".

          B. The amount of the tax credit shall be in an amount equal to fifty thousand dollars ($50,000) for the taxable year the taxpayer meets the requirements of this section.

          C. A taxpayer shall apply for certification of eligibility for the tax credit from the higher education department on forms and in the manner prescribed by that department. If the higher education department determines that the taxpayer meets the requirements of this section, that department shall issue a dated certificate of eligibility to the taxpayer providing the amount of tax credit for which the taxpayer is eligible and the taxable years in which the credit may be claimed. The higher education department shall provide the department with the certificates of eligibility issued pursuant to this subsection in an electronic format at regularly agreed upon intervals.

          D. That portion of the tax credit that exceeds a taxpayer's income tax liability in the taxable year in which the credit is claimed shall be refunded to the taxpayer.

          E. A taxpayer allowed to claim a tax credit pursuant to this section shall claim the tax credit in a manner required by the department. The credit shall be claimed within three taxable years of the end of the year in which the higher education department certifies the credit.

          F. The credit provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the credit.

          G. As used in this section:

                (1) "physician" means a physician licensed pursuant to the provisions of the Medical Practice Act, an osteopathic physician licensed pursuant to the provisions of the Medical Practice Act or a dentist licensed pursuant to the Dental Health Care Act; and

                (2) "practices medicine full-time" means providing health care within the scope of a physician's practice for at least one thousand five hundred eighty-four hours during the taxable year."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2025.

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