House Bill text for HB0655

HOUSE BILL 655

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Nathan P. Cote

AN ACT

RELATING TO TAXATION; CREATING THE MILITARY RETIREE RURAL HEALTH CARE 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] TAX CREDIT--MILITARY RETIREE RURAL HEALTH CARE TAX CREDIT.--

A. A taxpayer who files an individual New Mexico tax return, who is not a dependent of another individual, who is an eligible military retiree health care practitioner and who has provided health care services in New Mexico in a rural health care underserved area in a taxable year may claim a credit against the tax liability imposed by the Income Tax Act. The credit provided in this section may be referred to as the "military retiree rural health care tax credit".

B. The military retiree rural health care tax credit may be claimed and allowed in an amount that shall not exceed five thousand dollars ($5,000) for all eligible physicians, osteopathic physicians, dentists, clinical psychologists, podiatrists and optometrists who qualify pursuant to the provisions of this section, except the credit shall not exceed three thousand dollars ($3,000) for all eligible dental hygienists, physician assistants, certified nurse-midwives, certified registered nurse anesthetists, certified nurse practitioners and clinical nurse specialists.

C. To qualify for the military retiree rural health care tax credit, an eligible military retiree health care practitioner shall have provided health care during a taxable year for at least two thousand eighty hours at a practice site located in a rural health care underserved area. An eligible military retiree health care practitioner who provided health care services for at least one thousand forty hours but less than two thousand eighty hours at a practice site located in a rural health care underserved area during a taxable year is eligible for one-half of the credit amount.

D. Before an eligible military retiree health care practitioner may claim the military retiree rural health care tax credit, the practitioner shall submit an application to the department of health that describes the practitioner's clinical practice and contains additional information that the department of health may require. The department of health shall determine whether an eligible military retiree health care practitioner qualifies for the military retiree rural health care tax credit and shall issue a certificate to each qualifying eligible military retiree health care practitioner. The department of health shall provide the taxation and revenue department appropriate information for all eligible military retiree health care practitioners to whom certificates are issued.

E. A taxpayer claiming the credit provided by this section shall submit a copy of the certificate issued by the department of health with the taxpayer's New Mexico income tax return for the taxable year. If the amount of the credit claimed exceeds a taxpayer's tax liability for the taxable year in which the credit is being claimed, the excess may be carried forward for three consecutive taxable years.

F. The military retiree rural health care tax credit may be claimed in addition to the rural health care practitioner tax credit.

G. As used in this section:

(1) "eligible military retiree health care practitioner" means a military retiree receiving an honorable discharge after twenty years of service in the military who transitioned from a military occupation in medicine, dental and nursing fields into a similar civilian occupation, or a military retiree who enters the educational fields within two years of separation from the military, thus allowing the military retiree to complete any state certifications needed to comply with all state and local requirements for employment in these targeted fields:

(a) a certified nurse-midwife licensed by the board of nursing as a registered nurse and licensed by the public health division of the department of health to practice nurse-midwifery as a certified nurse-midwife;

(b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;

(d) an osteopathic physician licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978 or an osteopathic physician's assistant licensed pursuant to the provisions of the Osteopathic Physicians' Assistants Act;

(e) a physician or physician assistant licensed pursuant to the provisions of Chapter 61, Article 6 NMSA 1978;

(f) a podiatrist licensed pursuant to the provisions of the Podiatry Act;

(g) a clinical psychologist licensed pursuant to the provisions of the Professional Psychologist Act; and

(h) a registered nurse in advanced practice who has been prepared through additional formal education as provided in Sections 61-3-23.2 through 61-3-23.4 NMSA 1978 to function beyond the scope of practice of professional registered nursing, including certified nurse practitioners, certified registered nurse anesthetists and clinical nurse specialists;

(2) "health care underserved area" means a geographic area or practice location in which:

(a) it has been determined by the department of health, through the use of indices and other standards set by the department of health, that sufficient health care services are not being provided; or

(b) there exists a physician shortage of fifteen percent or more, as documented in a needs assessment that has been submitted to the department of health;

(3) "practice site" means a private practice, public health clinic, hospital, public or private nonprofit primary care clinic or other health care service location in a health care underserved area; and

(4) "rural" means an area or location identified by the department of health that is within a county with a population of three hundred thousand or less as of the last federal decennial census and that is outside of an urban area."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2009.

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