Bill Text: NJ A3445 | 2014-2015 | Regular Session | Introduced
Bill Title: Allows gross income tax deductions totaling $300,000 over five taxable years for psychiatrists.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-06-23 - Introduced, Referred to Assembly Appropriations Committee [A3445 Detail]
Download: New_Jersey-2014-A3445-Introduced.html
Sponsored by:
Assemblywoman MARY PAT ANGELINI
District 11 (Monmouth)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Co-Sponsored by:
Assemblywoman Casagrande
SYNOPSIS
Allows gross income tax deductions totaling $300,000 over five taxable years for psychiatrists.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a gross income tax deduction over five taxable years for psychiatrists 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 psychiatrist 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 psychiatrist 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 psychiatrist does not maintain a qualified New Jersey professional practice for the five taxable years, the psychiatrist 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 psychiatrist: providing medical diagnoses, exercising medical judgments, communicating medical judgments and diagnoses to patients and other healthcare providers, the performance of medical tasks such as, but not limited to, medical and psychological testing and evaluation, psychotherapy, the prescribing of medications, and the administering of electroconvulsive therapy, deep brain stimulation, light therapy or other psychiatric treatments or procedures.
"Qualified psychiatrist" means a taxpayer who is a State-licensed physician engaged in the practice of psychiatry.
2. This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2015.
STATEMENT
This bill provides a gross income tax deduction totaling $300,000 over five taxable years for psychiatrists who practice in New Jersey. The purpose of the bill is to encourage psychiatrists to continue to practice in New Jersey and for newly qualified psychiatrists to stay in New Jersey to practice.
Psychiatrists are physicians who specialize in the diagnosis, treatment and prevention of mental health disorders including substance abuse, and are qualified to treat both the mental and physical aspects of illness. To qualify for the deduction, a psychiatrist must be a taxpayer engaged in the practice of psychiatry 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. This bill provides an incentive for psychiatrists to practice in the State by reducing their income tax liability.
