New Mexico Code § 7-2-18.42

Physician tax credit
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A. For taxable years prior to January 1, 2032, a taxpayer who files an individual
New Mexico tax return, is not a dependent of another individual, is a physician and
provides health care services in New Mexico for at least one thousand five hundred
eighty-four hours during a taxable year may claim a credit against the tax liability
imposed by the Income Tax Act for that taxable year in an amount equal to ten
thousand dollars ($10,000). The credit provided in this section may be referred to as
the "physician tax credit".
B. A taxpayer shall apply for certification of eligibility for the tax credit from the
department of health on forms and in the manner prescribed by that department.
Completed applications shall be considered in the order received. For a taxpayer
approved to receive the credit, the department of health shall issue a certificate of
eligibility to the qualifying physician. The department of health shall provide the
department with certificates of eligibility issued pursuant to this subsection in an
electronic format at regularly agreed-upon intervals.
C. That portion of a tax credit that exceeds a taxpayer's tax liability in the taxable
year in which the credit is being claimed may be carried forward for up to three
consecutive taxable years.
D. A taxpayer allowed a tax credit pursuant to this section shall claim the credit on
forms and in a manner required by the department.
E. The tax 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 tax credit.
F. As used in this section, "physician" means a health professional who is a medical
physician or an osteopathic physician licensed to practice medicine in New Mexico
pursuant to the Medical Practice Act [Chapter 61, Article 6 NMSA 1978].
History: Laws 2026, ch. 69, § 6.

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