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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.

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

  • Licensed doctors
  • Osteopathic physicians
  • Dentists
  • Clinical psychologists
  • Podiatrists
  • Optometrists

Health care providers who are eligible for a $3,000 tax credit per year are:

  • Licensed dental hygienists
  • Physician assistants
  • Certified nurse midwives
  • Certified registered nurse anesthetists
  • Certified nurse practitioners
  • Clinical nurse specialists

Application

Applications are accepted at the beginning of January of each year for the previous tax year. Applications must be submitted 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 steps in the Rural Health Care Practitioner Tax Credit application process. Please view the RHCPTC Program Overview document for complete details:

Tools

  • The NM Taxation and Revenue Department’s Forms & Publications for RPD-41326 Rural Health Care Practitioner Tax Credit Claim Form