44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO TAXATION; ENACTING THE HEALTH CARE INVESTMENT CREDIT ACT; ALLOWING HEALTH CARE PROVIDERS TO CLAIM A GROSS RECEIPTS TAX CREDIT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. SHORT TITLE.--This act may be cited as the Health Care Investment Credit Act".

Section 2. DEFINITIONS.--As used in the Health Care Investment Credit Act:

A. "department" means the taxation and revenue department, the secretary of taxation and revenue or any employee of the department exercising authority lawfully delegated to that employee by the secretary;

B. "health care investment credit" means the tax credit determined pursuant to Sections 5 and 6 of the Health Care Investment Credit Act;

C. "qualified health care services" means medically necessary health care services provided by a qualified health care provider to qualifying individuals;

D. "qualifying individuals" means individuals:

(1) with family incomes at or below two hundred thirty-five percent of the poverty level under guidelines published annually in the federal register by the United States department of health and human services; or

(2) covered by the medicaid program administered by the human services department; and

E. "qualified health care provider" means a medical doctor, osteopath, optometrist, nurse practitioner, podiatrist, psychologist or dentist licensed pursuant to Chapter 61 NMSA 1978 or any professional corporation or other legal entity formed to provide health care services and owned solely by persons licensed to practice health care services of the type provided by the professional corporation or other legal entity.

Section 3. ADMINISTRATION OF HEALTH CARE INVESTMENT CREDIT ACT.--The department is charged with the administration of the Health Care Investment Credit Act.

Section 4. HEALTH CARE INVESTMENT CREDIT--CLAIMING THE CREDIT.--

A. There shall be allowed as a credit against a qualified health care provider's gross receipts or compensating tax due an amount equal to the health care investment credit.

B. A qualified health care provider may apply all or part of the credit against the qualified health care provider's gross receipts or compensating tax due.

Section 5. HEALTH CARE INVESTMENT CREDIT.--The health care investment credit shall be an amount equal to the product of twenty percent and the value of qualified health care services determined pursuant to Section 6 of the Health Care Investment Credit Act.

Section 6. VALUE OF QUALIFIED BELOW COST HEALTH CARE.--The value of qualified health care services shall be an amount determined by subtracting the amount actually charged for the qualified health care services from either:

A. the reimbursement rate for such health care services under medicare's participating physician's fee schedule issued pursuant to the provisions of Title 18 of the Social Security Act; or

B. if such services are not reimbursable pursuant to Title 18 of the Social Security Act, one hundred thirty percent of the reimbursement rate for such services under the medicaid program administered by the human services department.