HB 41 — RURAL HEALTH PRACTITIONER TAX CREDIT CHANGES

HOUSE BILL 41 54THTH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSIO,SESSION, 2019 INTRODUCED BY Miguel P.

Garcia 6and 8Elizabeth FOR"Liz" THEStefanics LEGISLATIVEPursuant HEALTHto ANDHouse HUMANRule SERVICES24-1, COMMITTEEthis 10document ANincorporates ACTamendments RELATINGthat TOhave TAXATION;been adopted prior to consideration of this measure by the House.

ADDINGIt PHARMACISTS,is SOCIALa WORKERStool ANDto CERTAINshow BEHAVIORALthe HEALTHamendments THERAPISTSin TOcontext THEand RURALis HEALTHnot CAREto PRACTITIONERbe TAXused CREDIT.for the purpose of amendments.

14FOR BETHE ITLEGISLATIVE ENACTEDHEALTH BYAND THEHUMAN LEGISLATURESERVICES OFCOMMITTEE THEAN STATEACT OFRELATING NEWTO MEXICO:TAXATION;

SECTIONADDING 1.PHARMACISTS, SOCIAL WORKERS AND h CERTAIN BEHAVIORAL HEALTH THERAPISTS TO THE RURAL HEALTH CARE g o PRACTITIONER TAX CREDIT.

Sectiont 7-2-18.22hr NMSAg 1978e (beingi Lawsk 2007,h er ti 17s ChapterBE 361,IT SectionENACTED 2)BY isTHE amendedLEGISLATURE toOF read:THE STATE OF NEW MEXICO:

wh l, nt, dSECTION 181. "7-2-18.22.

[TAXSection CREDIT7-2-18.22 ]NMSA RURAL1978 HEALTH(being CARELaws PRACTITIONER2007, =e =u 19g TAXe CREDIT.--b a l ie a e rh 20Chapter A.361, Section 2) is amended to read:

An taxpayerd who files an individual New Mexico a t m m 21 tax return, who is not a dependent of another individual, who d ri e= 22= iso anh eligible"7-2-18.22. health care practitioner and who has provided c e s k 23 health care services in New Mexico in a rural health care e a n b 24 underserved area in a taxable year may claim a credit against u [ the tax liability imposed by the Income Tax Act.

The[TAX creditCREDIT .211091.1] providedRURAL inHEALTH thisCARE sectionPRACTITIONER mayl be] referredb to,d asi thea "ruralº healthe careTAX practitionerCREDIT.-- taxr credit".i = r t e w d m a n o A.

HTRCº A Prior to January 1, 2029, a»HTRC d m :

b e d s º o t n = .211091.1 s k m e e a n e d r e l u [ A d taxpayer who files an individual New Mexico tax return, who is not a dependent of another individual, who is an eligible 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 "rural health care practitioner tax credit".

The rural health care practitioner tax credit may be claimed and allowed in an amount that shall not exceed five thousand dollars ($5,000) for all eligible HHHCº physicians, osteopathic physicians, dentists, clinical psychologists, podiatrists, [and[and] ] optometrists, pharmacists, independent social workers, clinical mental health practitioners, marriage and family therapists and professional art therapists who qualify pursuant to the provisions of this h section, except the credit shall not exceed three thousand u » r dollars ($3,000) for all eligible dental hygienists, physician t h g e l i assistants, certified nurse-midwives, certified registered h r i s nurse anesthetists, certified nurse practitioners and clinical h , e h nurse specialists.specialists.»HHHC HHHCºhealth care practitioners.»HHHC t u g e b l e e , gh C.

C.To qualify for the rural health care n d d i = = o h practitioner tax credit, an eligible health care practitioner l ] b ,d i a º r shall have provided health care during a taxable year for at e r = t e w d m a n o least two thousand eighty hours at a practice site located in d m :

Tob qualifyr fore thet ruralº healtho caret practitionern tax= credit,.211091.1 ans eligiblek healthm care practitioner e e- 172 shall- havee provided health care during a taxablen year for at e e n d 18r leaste twol thousandu eighty[ hoursA atd a practice site located in = = l ] 19 an approved rural health care underserved area.

An eligible a l r i 20 rural health care practitioner who provided health care t e a t services for at least one thousand forty hours but less than m m 21 e d r e 22 two thousand eighty hours at a practice site located in an c e r c 23 approved rural health care underserved area during a taxable e a n b 24 year is eligible for one-half of the credit amount.

u [ D.

Before an eligible health care practitioner may .211091.1 - 2 - claim the rural health care practitioner 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 provide the h taxation and revenue department appropriate information for all u » r eligible health care practitioners to whom certificates are t h g e l i issued.

h r i s E.

A taxpayer claiming the credit provided by this h , e h section shall submit a copy of the certificate issued by the t u g e b l e e , gh department of health with the taxpayer's New Mexico income tax n d d i = = o h return for the taxable year.

If the amount of the credit el e] 17b ,d i a º r claimed exceeds a taxpayer's tax liability for the taxable year e r = t e nw d 18m a n o in which the credit is being claimed, the excess may be carried =d =m l: ] 19 forward for three consecutive taxable years.

b r e t º o t n = .211091.1 s k m e - 3 - e a ln e d r ie 20l F.u [ A d forward for three consecutive taxable years.

F.

t e a t (1) "eligible health care practitioner" means:

m m 21 e d r e 22 (a) a certified nurse-midwife licensed c e r c 23 by the board of nursing as a registered nurse and licensed by e a n b 24 the public health division of the department of health to u [ practice nurse-midwifery as a certified nurse-midwife;

.211091.1 - 3 - (b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;

[(c)] (d) an optometrist licensed 6 pursuant to the provisions of the Optometry Act;

[(d)] (e) an osteopathic physician [licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978] or an osteopathic physician assistant licensed h pursuant to the provisions of the Osteopathic [Physicians' g o t hr Assistants] Medicine Act;

g e i k [(e)] (f) a physician or physician h r i s assistant licensed pursuant to the provisions of [Chapter 61, h , t, Article 6 NMSA 1978] the Medical Practice Act;

e u g e b l e e h [(f)] (g) a podiatrist licensed pursuant n d d i = = o h to the provisions of the Podiatry Act;

el e] 17b ,d i a º e [(g)] (h) a clinical psychologist er i = r t e nw d 18m a n o licensed pursuant to the provisions of the Professional =d =m l: ] 19 Psychologist Act;

[andb ae ld rs iº 20o (h)] (i) a registered nurse in advanced t en a= t.211091.1 practices whok has been prepared through additional formal m m 21 e d- r4 e- 22 education as provided in Sections 61-3-23.2 through 61-3-23.4 c e r c 23 NMSA 1978 to function beyond the scope of practice of e a n be 24d professionalr registerede nursing,l including certified nurse u [ practitioners,A certifiedd registeredPsychologist nurseAct; anesthetists and .211091.1 - 4 - clinical nurse specialists;

[and (h)] (i) 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;

and (k) a professional clinical mental 6 health counselor, marriage and family therapist or professional art therapist licensed pursuant to the provisions of the Counseling and Therapy Practice Act;

(2) "health care underserved area" means a h geographic area or practice location in which it has been u » r determined by the department of health, through the use of t h g e l i indices and other standards set by the department of health, h r i s that sufficient health care services are not being provided;

h , e h (3) "practice site" means a private practice, t u g e b l e e , gh public health clinic, hospital, public or private nonprofit n d d i = = o h primary care clinic or other health care service location in a el e] 17b ,d i a º r health care underserved area;

and e r = t e nw d 18m a n o (4) "rural" means an area or location =d =m l: ] 19 identified by the department of health as falling outside of an a l r i 20 urban area." t e a t SECTION 2.

APPLICABILITY.--Theb provisionsr ofe thist actº mo t n = .211091.1 s k m 21e - 5 - e a n e d r e 22l applyu to[ taxableA yearsd beginningidentified onby orthe afterdepartment Januaryof 1,health 2019.as falling outside of an urban area." SECTION 2.