Excludes certain Medicaid income from gross income tax.

This bill excludes a portion of Medicaid-related income from New Jersey's state gross income tax for qualifying medical practices. Specifically, it excludes an amount equal to the proportion of Medicaid receipts to total practice revenue (e.g., if 30% of a practice's income comes from Medicaid, 30% of that income is tax-free). It directly affects physicians and medical practices (especially LLCs or partnerships) treating Medicaid patients, incentivizing them to accept more Medicaid-covered patients by reducing their taxable income. The exclusion applies to income from services provided to Medicaid recipients under state law, effective for taxable years after enactment.