ELECTRONIC MEDICAL RECORDS TAX CREDIT

HB0249

HOUSE BILL 249

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Jenifer Jones
and
Pamelya Herndon

AN ACT

RELATING TO TAXATION; CREATING THE ELECTRONIC MEDICAL RECORDS
TAX CREDIT.

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
] CREDIT--ELECTRONIC MEDICAL RECORDS TAX
CREDIT.--

A. For a taxable year beginning on or after January
1, 2026 and prior to January 1, 2031, a taxpayer who files an
individual New Mexico income tax return, is not a dependent of
another individual and is a health care practitioner who makes
payments for an electronic medical records system to use in the
scope of the taxpayer's practice may claim a credit against the
taxpayer's tax liability imposed pursuant to the provisions of
the Income Tax Act. The credit authorized pursuant to this
section may be referred to as the "electronic medical records
tax credit".

B. The amount of the tax credit shall be in an
amount equal to the amount of payments made by a health care
practitioner for an electronic medical records system during a
taxable year for which the tax credit is claimed, not to exceed
six thousand dollars ($6,000) for that taxable year.

C. To receive a tax credit, a health care
practitioner shall:

(1) provide health care for at least one
thousand five hundred eighty-four hours during a taxable year;

(2) provide services in a health care
institution employing ten or fewer health care practitioners;
and

(3) maintain a record of the payments made for
an electronic medical records system that shall be made
available for review at the request of the department of health
or the department.

D. 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. Except
as provided in Subsection G of this section, only one tax
credit shall be certified per taxpayer per taxable year per
electronic medical records system for which payments are being
made. If the department of health determines that the taxpayer
meets the requirements of this section, that department shall
issue a dated certificate of eligibility to the taxpayer
providing the amount of tax credit for which the taxpayer is
eligible. 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.

E. A taxpayer who has claimed the rural health care
practitioner tax credit shall not be eligible for the
electronic medical records tax credit.

F. That portion of the tax credit that exceeds a
taxpayer's tax liability in the taxable year in which the tax
credit is claimed shall not be refunded and shall not be
carried forward to subsequent taxable years.

G. A taxpayer may be allocated the right to claim
the tax credit provided by this section in proportion to the
taxpayer's ownership interest if the taxpayer owns an interest
in a business entity that is taxed for federal income tax
purposes as a partnership or limited liability company and that
business entity has met all of the requirements to be eligible
for the credit. The total credit claimed by all members of the
partnership or limited liability company shall not exceed the
maximum amount of the credit allowed pursuant to this section.

H. A taxpayer allowed a tax credit pursuant to this
section shall report the amount of the tax credit separately in
a manner required by the department.

I. 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.

J. As used in this section:

(1) "electronic medical records system" means
a digital records system used to document the health care
information of a health care practitioner's patients;

(2) "health care information" means
information related to the past, present or future physical or
mental health or condition of an individual; the provision of
health care to an individual; or the past, present or future
payment for the provision of health care to an individual;

(3) "health care institution" means an
institution, a facility or an agency licensed, certified or
otherwise authorized or permitted by law to provide health care
in the ordinary course of business; and

(4) "health care practitioner" means:

(a) a midwife that is a: 1) certified
nurse-midwife licensed by the board of nursing as a registered
nurse and licensed by the public health division of the
department of health to practice nurse-midwifery as a certified
nurse-midwife; or 2) licensed midwife licensed by the public
health division of the department of health to practice
licensed midwifery;

(b) an osteopathic physician licensed
pursuant to the provisions of the Medical Practice Act;

(c) a physician licensed pursuant to the
provisions of the Medical Practice Act or a physician assistant
licensed pursuant to the provisions of the Physician Assistant
Act;

(d) a psychologist licensed pursuant to
the provisions of the Professional Psychologist Act;

(e) a registered nurse licensed pursuant
to the provisions of the Nursing Practice Act;

(f) a pharmacist licensed pursuant to
the provisions of the Pharmacy Act;

(g) a licensed clinical social worker or
a licensed independent social worker licensed pursuant to the
provisions of the Social Work Practice Act;

(h) a professional mental health
counselor, a professional clinical mental health counselor, a
marriage and family therapist, an alcohol and drug abuse
counselor or a professional art therapist licensed pursuant to
the provisions of the Counseling and Therapy Practice Act; and

(i) a physical therapist licensed
pursuant to the provisions of the Physical Therapy Act."

SECTION 2.
APPLICABILITY.--The provisions of this act
apply to taxable years beginning on or after January 1, 2026.

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