Rural Health Care Practitioner Tax Credit Program
The Pursuant to the New Mexico Rural Health Care Practitioner Tax Credit Program Section 7-2-18.22 NMSA 1978 allows certain healthcare practitioners who provide health care services in rural areas can apply for an income tax credit of $3,000 or $5,000. Through DOH, eligible practitioners may apply for a Certificate of Eligibility.
Licensed health care practitioners who are eligible for a $5,000 tax credit per year are:
- Physicians
- Osteopathic physicians
- Dentists
- Psychologists
- Podiatrists
- Optometrists
Licensed health care practitioners who are eligible for a $3,000 tax credit per year are:
- Dental hygienists
- Physician assistants
- Nurse Practitioners
- Midwives
- Nurse anesthetists
- Clinical nurse specialists
Eligible starting Tax Year 2024, the following categories of practitioner eligible for a maximum tax credit of $3,000 per year:
- Pharmacists licensed pursuant to the provisions of the Pharmacy Act;
- Registered Nurses licensed pursuant to the provisions of the Nursing Practice Act;
- Licensed Clinical Social Worker/Licensed Independent Social Worker licensed pursuant to the provisions of the Social Work Practice Act;
- Professional Mental Health Counselor/Professional Clinical Mental Health Counselor/Marriage and Family Therapist/Alcohol and Drug Abuse Counselor/Professional Art Therapist licensed pursuant to the provisions of the Counseling and Therapy Practice Act; and
- Physical Therapists licensed pursuant to the provisions of the Physical Therapy Act
Application
Applications for a Certificate of Eligibility are accepted at the beginning of January of each year for the previous tax year. Applications must be submitted electronically through the Online Portal at Pursuant to the New Mexico Rural Health Care Practitioner Tax Credit Program Section 7-2-18.22 NMSA 1978. Paper applications are no longer accepted.
Please note:DOH determines eligibility requirements. DOH does not issue this tax credit. The tax credit is issued and tracked by New Mexico Taxation and Revenue Department.
Rural Location
Applicants must utilize the Rural Health Information (RHI) Hub’s “Am I Rural?” Tool to determine if their practice site address is located in a rural area.
- RHI is supported by the Health Resources and Services Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) under the Rural Assistance Center for Federal Office of Rural Health Policy (FORHP). The “Am I Rural?” Tool uses federal definitions of rural, including eligibility criteria for federal programs, to determine whether a specific location is considered rural.
Process
Before applying for a Certificate of Eligibility, applicants must review the RHCPTC Program Overview documents below, including the FAQs, to confirm their eligibility for the correct tax year:
- RHCPTC Program Overview - For Tax Year 2023
- RHCPTC Program Overview - For Tax Year 2024
- RHCPTC FAQs
- RHCPTC Definition of Eligible Practitioners