STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator ROBERT W. SINGER
District 30 (Monmouth and Ocean)
SYNOPSIS
Allows gross income tax deduction for first $200,000 earned by certain new physicians in their first seven taxable years of practice in New Jersey.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act allowing a gross income tax deduction for certain income derived by certain new physicians in their first seven taxable years of practice in New Jersey, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. For the first seven taxable years of a qualified New Jersey practice, a qualified new physician shall be allowed to deduct from gross income the first $200,000 of income derived from the qualified new physician’s qualified New Jersey practice.
The total amount a qualified physician may deduct for all of the first seven taxable years of qualified New Jersey practice pursuant to this section shall not exceed $200,000.
As used in this section:
“Qualified New Jersey practice” means engaging in the following activities within the State as a qualified new physician: providing medical diagnoses, exercising medical judgments, communicating medical judgments and diagnoses to patients and other healthcare providers and the performance of medicals tasks such as, but not limited to, physical examinations and surgical procedures.
“Qualified new physician” means a taxpayer that is a doctor of medicine (M.D.) or osteopathy (D.O.) licensed to practice medicine and surgery by the New Jersey State Board of Medical Examiners pursuant to R.S.45:9-1 et seq., who has not engaged in the practice of medicine and surgery as a licensed doctor in New Jersey in a prior taxable year.
2. This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2018.
STATEMENT
This bill provides a gross income tax deduction for the first $200,000 earned by certain new physicians in their first seven taxable years of practice in New Jersey. The purpose of this bill is to encourage new physicians to begin their practice in New Jersey so as to prevent shortages of physicians in the State and to realize the economic benefits associated with the establishment of new physician practices.