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Rural Health Care Practitioner Tax Credit Program

The focus of this New Mexico Department of Health website is Rural Healthcare Practitioner Tax Credit and explains who to contact, eligibility, & how to apply.

The Rural Health Care Practitioner Tax Credit allows certain healthcare providers who provide health care services in rural areas to be eligible for an income tax credit of $3,000 or $5,000.

Licensed health care providers who are eligible for a $5,000 tax credit per year are:

  • Physicians
  • Osteopathic physicians
  • Dentists
  • Psychologists
  • Podiatrists
  • Optometrists

Licensed health care providers 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 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 Rural Health Care Practitioner Tax Credit. Paper applications are no longer accepted.

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

There are four basic steps in the Rural Health Care Practitioner Tax Credit application process. Please view the RHCPTC Program Overview document for complete details:

Tools