PHYSICIAN TAX CREDIT

SB0012

SENATE BILL 12

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

INTRODUCED BY

Katy M. Duhigg
and
Elizabeth "Liz" Thomson
and
Cindy Nava

and
Heather Berghmans
and
Martin Hickey

AN ACT

RELATING TO TAXATION; CREATING THE PHYSICIAN TAX CREDIT
PURSUANT TO THE INCOME TAX ACT.

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
] PHYSICIAN TAX CREDIT.--

A. A taxpayer who files an individual New Mexico
tax return, is not a dependent of another individual, is a
physician and provides health care 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 in an amount equal to four thousand dollars
($4,000). 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. A taxpayer who claims a rural health care
practitioner tax credit shall be eligible to claim the tax
credit provided by this section.

F. 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.

G. 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."

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

- 3 -