Allows gross income tax deductions totaling $300,000 over five taxable years for certain primary care physicians.

A2445

ASSEMBLY, No. 2445

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman TENNILLE R. MCCOY

District 14 (Mercer and Middlesex)

SYNOPSIS

���� Allows gross income tax deductions totaling $300,000
over five taxable years for certain primary care physicians.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
allowing a gross income tax deduction over five taxable
years for certain primary care physicians who practice in the State,
supplementing Title 54A of the New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� A qualified primary
care physician shall be allowed a one time deduction of $100,000 of income
derived from the qualified New Jersey professional practice, and in each of the
four successive taxable years thereafter the allowable deduction shall be reduced
by $20,000 each year, provided that the physician continues to maintain a
qualified New Jersey professional practice for the five taxable years.� The
total amount of deductions allowed pursuant to this section for the five
taxable years shall not exceed $300,000.� In the event that the qualified
primary care physician does not maintain a qualified New Jersey professional
practice for the five taxable years, the physician shall be liable for
repayment to the State of the full amount of the gross income tax liability
that would have been due if the deductions had not been taken.� The Director of
the Division of Taxation in the Department of the Treasury may exempt a
taxpayer from some or all repayment as the director deems necessary to
alleviate undue hardship.�

���� b.��� As used in this section:

���� �Qualified New Jersey
professional practice� means engaging in the following activities within the
State as a qualified primary care physician: providing medical diagnoses,
exercising medical judgments, communicating medical judgments and diagnoses to
patients and other healthcare providers and the performance of medical tasks
such as, but not limited to, physical examinations and surgical procedures.

���� �Qualified primary care
physician� means a taxpayer who is a State-licensed physician engaged in the
practice of family medicine, general internal medicine, general pediatrics, or
general obstetrics or gynecology.�

���� 2.��� This act shall take
effect immediately and apply to taxable years ending after the effective date.

STATEMENT

���� This bill provides a gross
income tax deduction totaling $300,000 over five taxable years for certain
primary care physicians who practice in New Jersey.� The purpose of the bill is
to encourage primary care physicians to continue to practice in New
Jersey and for newly qualified physicians to stay in New Jersey to practice.

���� To qualify for the deduction,
a physician must be a taxpayer engaged in the practice of family medicine,
general internal medicine, general pediatrics or general obstetrics or
gynecology in the State.� The initial allowable deduction of $100,000 in the first
taxable year is reduced by $20,000 per year in each of the four following
taxable years.

���� It is estimated that the
supply of primary care physicians will continue to fall short of demand in the
coming years due to the number of physicians who are nearing retirement age, a
shortage of residency programs, and the recent influx of great numbers of newly
insured patients brought about by the federal Affordable Care Act.� This bill
provides an incentive for primary care physicians to practice in the State by
reducing their income tax liability.�