First, the Act gives a primary care dental or medical practice located in or within 5 miles of an HEZ the ability to deduct from its taxable income an amount equal to payments received by the practice in Medicaid funds, provided that at least half of the income earned by the practice is paid in Medicaid funds.
For most practices located in an HEZ, this should not prove to be a difficult threshold to reach.
The Act also grants to municipalities located in an HEZ the ability to authorize a property tax exemption for that portion of a building used to house a medical or dental primary care practice.
One is a low-interest loan program, administered by the New Jersey Economic Development Authority, for the construction or renovation of medical office space in a HEZ or within five miles of the designated zone.
In addition to Newark, cities with more than 30,000 residents that are designated as HEZs include Atlantic City, Camden, Jersey City, Irvington, New Brunswick, Paterson, Perth Amboy and Trenton.
This creation of HEZs is intended to encourage primary care practices to remain located in, or relocate to, medically under-served areas, where many residents utilize the emergency room of a local hospital as their primary care facility.