Rural Health Care Practitioner Tax Credit Program

Pursuant to the New Mexico Rural Health Care Practitioner Tax Credit Program Section 7-2-18.22 NMSA 1978, 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.

Eligibility

A taxpayer who:

• Files an individual New Mexico tax return
• Is not a dependent of another individual
• Is an eligible health care practicioner; and
• Has provided direct health care services in New Mexico in a rural health care underserved area in a taxable year.

Practice Site

Applicants must utilize the Rural Health Information (RHI) Hub's "Am I Rural" tool to determine if their practice site address is in a rural health care underserved 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 Assitance Center for Federal Office of Rural Health Policy (FORHP). The "Am I Rural?" tool uses federal definitions of rural, including elibility criteria for federal programs, to determine whether a location is considered rural.

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 Application Portal. Paper applications are no longer accepted.

Requirements

Before applying for a Certificate of Eligibility, applicants must review the requirements listed in the Program Overview documents below, to confirm their eligibility for the correct tax year:

• Program Overview - For Tax Year 2023
• Program Overview - For Tax Year 2024
• FAQs
• Definition of Eligible Practicioners

Tools

• Rural Health Information (RHI) Hub’s “Am I Rural?” Tool
• NM Taxation and Revenue Department’s Forms & Publications for RPD-41326 Rural Health Care Practitioner Tax Credit Claim Form
• NM Board of Nursing License Portal
• NM Medical Board Licensee Lookup

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. DOH is neither a taxation agency nor a tax preparer and cannot offer any advice on your taxes. For specific questions to tax preparation or deadlines, please contact a qualified tax professional or the New Mexico Taxation and Revenue Department.