(TRENTON) – The General Assembly on
Monday approved legislation sponsored by Assembly Speaker Pro Tempore Jerry
Green and Assemblywoman Shavonda E. Sumter to help transform ailing or obsolete
health care facilities into productive health care centers once
again.
“Shifts in
population, economic pressures and scientific advancement often lead to the
construction of new hospital facilities and the closing of older hospitals,”
said Green (D-Middlesex/Somerset/Union). “This is unfortunate for the
communities that house these once productive hospitals because they often
contribute greatly to local employment and tax revenue. This legislation would
aid in repurposing former hospitals health in a positive transition to health
centers that can still provide much needed support to the
community.”
“If we can
help transform these former hospitals into centers for the delivery of other
health care and support services then we can achieve a win-win for our
communities,” said Sumter (D-Bergen/Passaic). “Barnert Hospital in Paterson is a
perfect example of a productive transformation from hospital to community health
center. This bill would support transitions such as Barnert’s in other areas of
the state.”
The bill
(A-3043) would grant corporation business tax credits to developers who make
certain capital investments for repurposing qualified health care facilities.
Under the bill, a qualified health care facility is any licensed health care
facility that has been granted a certificate of need to cease all or partial
operation. The bill restricts the function of a repurposed facility to a
non-acute health care and health support services center, and requires a credit
applicant to demonstrate that such an investment will not destabilize the supply
and delivery of acute health care services in its market.
The bill would
allow the developer of a repurposed qualified health care facility to qualify
for corporation business tax credits equal to 100 percent of the capital
investment, if that capital investment is at least $10 million and is applied
towards repurposing a facility that will have tenants with a total of 100 or
more full-time employees. Annually for ten years the taxpayer may use a credit
equal to 10 percent of the qualified capital investment.
The bill was
approved 46-25-2 by the Assembly and now awaits further consideration by the
Senate.
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