Legislation Would Provide Tax Credits to Help Redevelop Aging/Obsolete Hospitals
An Assembly panel on Monday approved legislation sponsored by Assemblyman Jerry Green (D-Middlesex/Somerset/Union) to help transform ailing or obsolete hospitals into productive healthcare facilities 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. “This is unfortunate for the communities that house these once productive hospitals because they often contribute greatly to local employment and tax revenue. If we can help transform these former hospitals into centers for the delivery of other health care services and health support services then we can achieve a win-win for our communities.”
The bill (A-3043) targets facilities that were general hospitals but that have been granted a certificate of need to cease operation as a general hospital. These “qualified health care facilities” can be renovated and redeveloped as a health care and health support services center.
Specifically, the bill would grant corporation business tax credits to developers who make certain capital investments for repurposing qualified health care facilities.
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 by the Assembly Health and Senior Services Committee by a vote of 7-1-2 and now awaits consideration by the full Assembly.