A. Receipts of a health care practitioner from payments by the United States government or any agency thereof for provision of medical and other health services by a health care practitioner or of medical or other health and palliative services by hospices or nursing homes to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.

B. Receipts of a health care practitioner from payments by a third-party administrator of the federal TRICARE program for provision of medical and other health services by medical doctors and osteopathic physicians to covered beneficiaries may be deducted from gross receipts.

C. Receipts of a health care practitioner from payments by or on behalf of the Indian health service of the United States department of health and human services for provision of medical and other health services by medical doctors and osteopathic physicians to covered beneficiaries may be deducted from gross receipts.

D. Receipts of a clinical laboratory from payments by the United States government or any agency thereof for medical services provided by the clinical laboratory to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.

E. Receipts of a home health agency from payments by the United States government or any agency thereof for medical, other health and palliative services provided by the home health agency to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.

F. Prior to July 1, 2024, receipts of a dialysis facility from payments by the United States government or any agency thereof for medical and other health services provided by the dialysis facility to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.

G. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. A taxpayer who has receipts that are deductible pursuant to this section and Section 7-9-93 NMSA 1978 shall deduct the receipts under this section prior to calculating the receipts that may be deducted pursuant to Section 7-9-93 NMSA 1978.

H. The department shall compile an annual report on the deductions created pursuant to this section that shall include the number of taxpayers approved by the department to receive each deduction, the aggregate amount of deductions approved and any other information necessary to evaluate the effectiveness of the deductions. The department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the deductions and whether the deductions are providing a benefit to the state.

I. For the purposes of this section:

(1) "clinical laboratory" means a laboratory accredited pursuant to 42 USCA 263a;

(2) "dialysis facility" means an end-stage renal disease facility as defined pursuant to 42 C.F.R. 405.2102;

(3) "health care practitioner" means:

(a) an athletic trainer licensed pursuant to the Athletic Trainer Practice Act [Chapter 61, Article 14D NMSA 1978];

(b) an audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act [Chapter 61, Article 14B NMSA 1978];

(c) a chiropractic physician licensed pursuant to the Chiropractic Physician Practice Act [Chapter 61, Article 4 NMSA 1978];

(d) a counselor or therapist practitioner licensed pursuant to the Counseling and Therapy Practice Act [Chapter 61, Article 9A NMSA 1978];

(e) a dentist licensed pursuant to the Dental Health Care Act [Chapter 61, Article 5A NMSA 1978];

(f) a doctor of oriental medicine licensed pursuant to the Acupuncture and Oriental Medicine Practice Act [Chapter 61, Article 14A NMSA 1978];

(g) an independent social worker licensed pursuant to the Social Work Practice Act [Chapter 61, Article 31 NMSA 1978];

(h) a massage therapist licensed pursuant to the Massage Therapy Practice Act [Chapter 61, Article 12C NMSA 1978];

(i) a naprapath licensed pursuant to the Naprapathic Practice Act [61-12F-1 to 61-12F-11 NMSA 1978];

(j) a nutritionist or dietitian licensed pursuant to the Nutrition and Dietetics Practice Act [61-7A-1 to 61-7A-15 NMSA 1978];

(k) an occupational therapist licensed pursuant to the Occupational Therapy Act [Chapter 61, Article 12A NMSA 1978];

(l) an optometrist licensed pursuant to the Optometry Act [Chapter 61, Article 2 NMSA 1978];

(m) an osteopathic physician licensed pursuant to the Osteopathic Medicine Act [Chapter 61, Article 10 NMSA 1978];

(n) a pharmacist licensed pursuant to the Pharmacy Act [Chapter 61, Article 11 NMSA 1978];

(o) a physical therapist licensed pursuant to Physical Therapy Act [61-12D-1 to 61-12D-19 NMSA 1978];

(p) a physician licensed pursuant to the Medical Practice Act [Chapter 61, Article 6 NMSA 1978];

(q) a podiatrist licensed pursuant to the Podiatry Act [Chapter 61, Article 8 NMSA 1978];

(r) a psychologist licensed pursuant to the Professional Psychologist Act [Chapter 61, Article 9 NMSA 1978];

(s) a radiologic technologist licensed pursuant to the Medical Imaging and Radiation Therapy Health and Safety Act [Chapter 61, Article 14E NMSA 1978];

(t) a registered nurse licensed pursuant to the Nursing Practice Act [Chapter 61, Article 3 NMSA 1978];

(u) a respiratory care practitioner licensed pursuant to the Respiratory Care Act [Chapter 61, Article 12B NMSA 1978]; and

(v) a speech-language pathologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act [Chapter 61, Article 14B NMSA 1978];

(4) "home health agency" means a for-profit entity that is licensed by the department of health and certified by the federal centers for medicare and medicaid services as a home health agency and certified to provide medicare services;

(5) "hospice" means a for-profit entity licensed by the department of health as a hospice and certified to provide medicare services;

(6) "nursing home" means a for-profit entity licensed by the department of health as a nursing home and certified to provide medicare services; and

(7) "TRICARE program" means the program defined in 10 U.S.C. 1072(7).

History: 1978 Comp., § 7-9-77.1, enacted by Laws 1998, ch. 96, § 1; 2000 (2nd S.S.), ch. 16, § 1; 2003, ch. 350, § 1; 2003, ch. 351, § 1; 2005, ch. 91, § 1; 2007, ch. 361, § 4; 2014, ch. 56, § 1; 2016 (2nd S.S.), ch. 3, § 4.

Cross references. — For the provisions of Title XVIII of the federal Social Security Act, see 42 U.S.C. § 1395 et seq.

The 2016 (2nd S.S.) amendment, effective November 1, 2016, clarified the type of health care provider that may take certain gross receipts tax deductions for medical and health care services; in Subsection A, after "Receipts", added "of a health care practitioner", after "health services by", deleted "medical doctors, osteopathic physicians, doctors of oriental medicine, athletic trainers, chiropractic physicians, counselor and therapist practitioners, dentists, massage therapists, naprapaths, nurses, nutritionists, dietitians, occupational therapists, optometrists, pharmacists, physical therapists, psychologists, radiologic technologists, respiratory care practitioners, audiologists, speech-language pathologists, social workers and podiatrists" and added "a health care practitioner", and after "or of medical", added "or"; in Subsection B, after "Receipts", added "of a health care practitioner"; in Subsection C, after "Receipts", added "of a health care practitioner"; in Subsection D, after "Receipts", added "of a clinical laboratory"; in Subsection E, after "Receipts", added "of a home health agency"; in Subsection F, after "receipts", added "of a dialysis facility", after "services provided by a", deleted "a" and added "the", after "deducted from gross receipts", deleted "according to the following schedule:" and deleted Paragraphs F(1) through F(3), relating to deductions from gross receipts; in Subsection G, after the first sentence, added the second sentence; in Subsection H, after "evaluate the effectiveness of the deductions.", deleted "Beginning in 2020 and every five years thereafter that this section is in effect"; in Subsection I, deleted Paragraphs I(1) and I(2) and redesignated former Paragraph I(3) as Paragraph I(1); deleted Paragraphs I(4) and I(5) and redesignated former Paragraph I(6) as Paragraph I(2), deleted Paragraph I(7), added new Paragraph I(3) and redesignated former Paragraphs I(8) and I(9) as Paragraph I(4) and I(5), respectively, deleted Paragraphs I(10) through I(13) and redesignated former Paragraph I(14) as Paragraph I(6), deleted Paragraphs I(15) through I(26) and redesignated former Paragraph I(27) as Paragraph I(7).

The 2014 amendment, effective July 1, 2014, provided a deduction from gross receipts of payments for services rendered by dialysis facilities; added Subsections F, G and H; and in Subsection I, added Paragraph (6).

The 2007 amendment, effective July 1, 2007, eliminated the schedules of deductible receipts for the years 2003 through 2005; expanded the list of health care providers who may deduct receipts from the United States government and its agencies; added Subsection C; and added Paragraphs (1), (2), (4) through (6), (9), (11), (12), (14), (15), and (17) through (25) of Subsection F.

The 2005 amendment, effective June 17, 2005, added Subsection C to provide a deduction for certain payments by the United States for medical services provided by a clinical laboratory; added Subsection D to provide a deduction for certain payments by the United States for medical, other health and palliative services provided to a home health agency; requireed that "hospice" be certified to provide medicare services; and in Subsection E, defined "clinical laboratory", "home health agency" and "nursing home".

The 2003 amendment, effective July 1, 2003, in Subsection A, substituted "osteopathic physicians and podiatrists" for "osteopaths"; redesignated former Subsection B as C and added present Subsection B; in Subsection C, rewrote Paragraph C(2) and added Paragraphs C(3) and (4).

The 2000 amendment, effective July 1, 2000, deleted former Subsections A & B, concerning deductions from gross receipts from specific dates, and redesignated the remaining subsections accordingly; in present Subsection A, deleted "on or after July 1, 2000" following "Receipts" and inserted "or of medical, other health and palliative services by a hospice"; and in present Subsection B, added Paragraph (1) and designated the remaining section text as Paragraph (2).