SENATE FINANCE COMMITTEE SUBSTITUTE FOR

SENATE BILL 343

51st legislature - STATE OF NEW MEXICO - first session, 2013

AN ACT

RELATING TO TAXATION; CREATING THE OPIOID TREATMENT INCOME TAX CREDIT; PROVIDING A THREE-YEAR INCOME TAX CREDIT FOR CERTIFIED PHYSICIANS WHO TREAT OPIOID DEPENDENCE.

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] OPIOID TREATMENT INCOME TAX CREDIT.--

          A. A taxpayer who files an individual New Mexico income tax return, who is not a dependent of another individual, who is an eligible health care practitioner and who has provided buprenorphine replacement therapy on or after January 1, 2014 and prior to January 1, 2017, may claim a credit in an amount not to exceed six thousand dollars ($6,000) per year. The tax credit provided in this section may be referred to as the "opioid treatment income tax credit".

          B. The purpose of the opioid treatment income tax credit is to increase access to buprenorphine therapy for patients with an opioid dependence by encouraging physicians to become certified and administer buprenorphine for opioid addiction in an outpatient health care setting and to reduce the demand for the trade of unregulated or illegal drugs.

          C. A taxpayer may claim the opioid treatment income tax credit for a taxable year in which the taxpayer becomes certified by the federal drug enforcement agency to provide buprenorphine replacement therapy and for which the taxpayer provides buprenorphine replacement therapy to an average minimum of eight patients per month for at least six months and for subsequent taxable years in which the taxpayer continues to provide buprenorphine replacement therapy to an average minimum of eight patients per month for twelve months. The taxpayer may claim the opioid treatment income tax credit in an amount of one thousand five hundred dollars ($1,500) for providing buprenorphine replacement therapy to an average minimum of eight patients per month and may claim an additional one thousand five hundred dollars ($1,500) for every additional average eight patients per month for whom the taxpayer provides buprenorphine replacement therapy, not to exceed a total of six thousand dollars ($6,000) per year.

          D. That portion of the opioid treatment income tax credit approved by the department that exceeds a taxpayer's income tax liability in the taxable year in which the opioid treatment income tax credit is claimed shall not be refunded to the taxpayer. The opioid treatment income tax credit may be carried forward for three consecutive years. The tax credit shall not be transferred to another taxpayer.

          E. A taxpayer who claims and is granted approval for the opioid treatment income tax credit may apply for and, upon meeting the requirements pursuant to Section 7-2-18.22 NMSA 1978, be granted approval for the rural health care practitioner tax credit. The rural health care practitioner tax credit shall be applied first and before the opioid treatment income tax credit. The opioid treatment income tax credit may be applied against remaining income tax liability, if any, after the rural health care practitioner tax credit has been applied against the income tax liability of the taxpayer.

          F. A husband and wife filing separate returns for a taxable year for which they could have filed a joint return may each claim only one-half of the opioid treatment income tax credit that would have been claimed on a joint return.

          G. A taxpayer who otherwise qualifies and claims an opioid treatment income tax credit in New Mexico that may be claimed by a partnership or limited liability company of which the taxpayer is a member may claim a tax credit only in the proportion to the taxpayer's interest in the partnership or limited liability company. The total tax credit claimed by all members of the partnership or limited liability company shall not exceed the allowable tax credit pursuant to Subsection A of this section.

          H. The board of pharmacy may adopt rules establishing procedures to certify a taxpayer for the purposes of obtaining an opioid treatment income tax credit. The rules shall ensure that a taxpayer claims the opioid treatment income tax credit in an amount proportional to the number of patients served on average per month pursuant to Subsection C of this section. In the case that the taxpayer is an eligible rural health care practitioner providing buprenorphine replacement therapy in an approved rural health care underserved area, the time required to provide those health care services may also be applied to the hours required to qualify for the rural health care practitioner tax credit. The board of pharmacy shall issue a dated certificate of eligibility containing the taxpayer's information, the amount of opioid treatment income tax credit for which the taxpayer is eligible, the number of patients provided with buprenorphine replacement therapy and any other information required by the taxation and revenue department. All certificates of eligibility issued pursuant to this subsection shall be sequentially numbered, and an account of all certificates issued or destroyed shall be maintained by the board of pharmacy. The taxation and revenue department shall audit the records of the opioid treatment income tax credit maintained by the board of pharmacy on a periodic basis to ensure effective administration of the opioid treatment income tax credit and compliance with the Tax Administration Act and with this section.

          I. To claim an opioid treatment income tax credit, the taxpayer shall provide to the taxation and revenue department the certificate of eligibility issued by the board of pharmacy pursuant to this section to the taxpayer for the taxable year in which the opioid treatment income tax credit is claimed.

          J. The department may allow a maximum annual aggregate of two million dollars ($2,000,000) in opioid treatment income tax credits that may be claimed pursuant to the Income Tax Act. Applications for the opioid treatment income tax credit shall be considered in the order received by the department.

          K. The department shall compile an annual report that includes the number of taxpayers approved by the department to receive an opioid treatment income tax credit. Notwithstanding any other section of law to the contrary, the department may disclose the number of applicants for the opioid treatment income tax credit, the amount of each tax credit approved, the number of patients served, the annual aggregate amount of tax credits allowed and information to aid in evaluating the effectiveness of the opioid treatment income tax credit to the interim revenue stabilization and tax policy committee.

          L. An appropriate legislative committee shall review the effectiveness of the opioid treatment income tax credit in 2016.

          M. As used in this section:

                (1) "buprenorphine replacement therapy" means medical treatment for addiction to illegal opioids or prescription opioids using one of the two sublingual forms of the medication buprenorphine, either in combination with the medication naloxone or not in combination with the medication naloxone, depending on the appropriate medical indication based on the judgment of the prescribing eligible health care practitioner;

                (2) "eligible health care practitioner" means a New Mexico physician licensed pursuant to the provisions of the Medical Practice Act or a New Mexico doctor of osteopathic medicine licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978; and

                (3) "opioid treatment" means medical treatment with the medication buprenorphine for a person with an addiction to illegal opioids or prescription opioids."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2014.