NM HB142

Renames the "Rural Health Care Practitioner Tax Credit" to "Health Care Practitioner Tax Credit" and expands eligibility to include practitioners serving in urban health care underserved areas, not just rural areas

Increases the maximum tax credit for practitioners working full-time (1,584+ hours) in rural underserved areas from $5,000 to $10,000 for physicians, dentists, psychologists, podiatrists, and optometrists, and from $3,000 to $7,500 for nurses, pharmacists, social workers, and other allied health professionals

Creates a new credit structure for urban underserved areas: $5,000/$3,000 for full-time work and $2,500/$1,500 for part-time work (792-1,583 hours), depending on practitioner type

Reduces the minimum practice hours required for emergency medical physicians to qualify for the full credit from 1,584 hours to 1,440 hours in either rural or urban underserved areas

Applies to taxable years beginning on or after January 1, 2026