Bill Text: NJ S1422 | 2014-2015 | Regular Session | Introduced
Bill Title: Allows gross income tax deduction for first $200,000 earned by certain new physicians and dentists in first seven taxable years of practice in NJ.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-27 - Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee [S1422 Detail]
Download: New_Jersey-2014-S1422-Introduced.html
Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Allows gross income tax deduction for first $200,000 earned by certain new physicians and dentists in first seven taxable years of practice in NJ.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a gross income tax deduction for certain income derived by certain new physicians and dentists and 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. For the first seven taxable years of a qualified New Jersey professional practice, a qualified primary care physician or a qualified dentist shall be allowed to deduct the first $200,000 of income derived from the qualified New Jersey professional practice provided that the physician or dentist continues to maintain a qualified New Jersey professional practice for the seven taxable years. The total amount of deductions allowed pursuant to this section for the first seven taxable years of a qualified New Jersey professional practice for a qualified primary care physician or qualified dentist shall not exceed $200,000. In the event that the qualified physician or qualified dentist does not maintain a New Jersey professional practice for the seven taxable years, the physician or dentist 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 deduction 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: professionally practicing in this State as a qualified primary care physician or a qualified dentist.
"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.
"Qualified dentist" means a taxpayer who is a State-licensed dentist engaged in the practice of general or pediatric dentistry.
2. This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2014.
STATEMENT
This bill provides a gross income tax deduction for the first $200,000 earned by new primary care physicians and new dentists practicing in certain specialties in their first seven taxable years of practice in New Jersey. The purpose of the bill is to encourage new physicians and dentists to practice in New Jersey in specialties of current or projected shortages.
To qualify for the deduction, a physician or dentist would be required to be a taxpayer engaged in professional practice in the State for a seven-year period. For physicians, the practice must be in family medicine, general internal medicine, general pediatrics, or general obstetrics or gynecology. For dentists, the practice must be in general or pediatric dentistry.
The total individual deduction allowed pursuant to this bill may not exceed $200,000. If a qualified physician or qualified dentist does not maintain a New Jersey professional practice for the seven-year period, the physician or dentist 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 deduction had not been allowed. 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.
The bill applies to taxable years beginning on or after January 1, 2014.
