Excludes certain Medicaid income from gross income tax.

This New Jersey bill (A 3155) would exempt a portion of income earned by medical practices from state income tax when serving Medicaid patients. Specifically, it excludes the share of a practice's net income derived from Medicaid services, calculated as the proportion of Medicaid receipts relative to total practice revenue. The policy aims to incentivize physicians and clinics to treat more Medicaid patients by reducing their tax burden on that income. It applies to practices organized as LLCs or partnerships and would take effect for taxable years after enactment.