New Mexico physicians could claim a $4,000 income tax credit

The introduced bill would let an eligible physician claim a $4,000 credit against New Mexico income tax. The proposal covers medical and osteopathic physicians licensed to practice in New Mexico who meet the filing and work-hour requirements. The physician must file an individual New Mexico tax return, cannot be another person's dependent, and must provide care in New Mexico for at least 1,584 hours during the tax year. The physician must apply to the New Mexico Department of Health and receive a certificate of eligibility; applications are considered in the order received. A physician who claims the rural health care practitioner credit may also claim this credit. The proposal would apply to tax years beginning on or after January 1, 2026. Any credit amount above the tax owed may be carried forward for up to three consecutive tax years.