SENATE BILL 558

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

INTRODUCED BY

Sue Wilson Beffort

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX DEDUCTION FOR RETIREMENT PAY OF CERTAIN ARMED FORCES RETIREE MEDICAL PRACTITIONERS.

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] DEDUCTION--RETIREMENT PAY OF ARMED FORCES RETIREE MEDICAL PRACTITIONER.--

          A. An individual taxpayer who is an armed forces retiree, is an eligible medical practitioner and has provided medical services in New Mexico at a practice site in a medically underserved area for at least two thousand eighty hours in the taxable year may claim a deduction from net income in the amount of that individual's military retirement or retainer pay. 

          B. Prior to claiming the deduction provided by this section, the taxpayer shall submit information to the department of health, in a format satisfactory to the department, that establishes that the taxpayer is an eligible medical practitioner, that documents the taxpayer's medical services in a medically underserved area and that contains any additional documentation the department of health may require to determine qualification for the deduction provided by this section. If the department of health determines that the taxpayer has met the qualifications for the deduction provided by this section, it shall issue a certificate of qualification.           C. A taxpayer claiming the deduction provided by this section shall submit a copy of the certificate of qualification issued by the department of health and any additional information required by the taxation and revenue department with the taxpayer's New Mexico income tax return for the taxable year.

          D. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the deduction provided by this section that would have been allowed on a joint return.

          E. As used in this section:

                (1) "armed forces retiree" means a former member of the armed forces of the United States who has qualified by years of service to separate with lifetime benefits;

                (2) "eligible medical practitioner" means:

                     (a) 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;

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

                     (c) 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;

                (3) "medically underserved area" means a medically underserved area as designated by the health resources and services administration of the United States department of health and human services; and

                (4) "practice site" means a private practice, public health clinic, hospital, public or private nonprofit primary care clinic or other medical service location in a medically underserved area."

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

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