ASSEMBLY, No. 524

STATE OF NEW JERSEY

220th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

 


 

Sponsored by:

Assemblyman  ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblywoman  LISA SWAIN

District 38 (Bergen and Passaic)

 

Co-Sponsored by:

Assemblymen Tully, Benson and Assemblywoman Speight

 

 

 

 

SYNOPSIS

     Provides gross income tax credit to certain taxpayers who pay for certain in-home services through health care service firm.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act providing a gross income tax credit to certain taxpayers who pay for certain services to be provided at their residence through a health care service firm, supplementing Title 54A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  A taxpayer with gross income of less than $150,000 for the taxable year shall be allowed a credit against the tax otherwise due under the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., in an amount equal to 20 percent of the expenses incurred by the taxpayer during the taxable year for having an individual employed, placed, or arranged to be placed by a health care service firm to provide in-home companion services, health care services, or personal care services to the taxpayer at the taxpayer’s residence.  The credit shall only be available to a taxpayer who is permanently and totally disabled or is age 65 or older.

     b.    Expenses incurred during a taxable year by a taxpayer shall not include any amounts reimbursed or paid by an insurance company.

     c.     The amount of the credit allowed pursuant to this section shall be applied against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., after all other credits and payments.  If the credit exceeds the amount of tax liability otherwise due, that amount of excess shall be an overpayment for the purposes of N.J.S.54A:9-7, provided, however, that subsection (f) of N.J.S.54A:9-7 shall not apply.

     d.    As used in this section:

     “Companion services” means non-medical, basic supervision and socialization services which do not include assistance with activities of daily living, and which are provided in the individual's home. Companion services may include the performance of household chores.

     “Health care service firm” means an entity registered as a health care service firm pursuant to section 1 of P.L.2002, c.126 (C.34:8-45.1).

     “Health care services” means any services rendered for the purpose of maintaining or restoring an individual's physical or mental health or any health-related services, and for which a license or certification is required as a pre-condition to the rendering of such services.

     “Permanently and totally disabled” means total and permanent inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment, including blindness.

     “Personal care services” means services performed by licensed or certified personnel for the purpose of assisting an individual with activities of daily living that may involve physical contact.  Services include, but are not limited to, bathing, toileting, transferring, dressing, grooming, and assistance with ambulation, exercise, or other aspects of personal hygiene.

 

     2.    This act shall take effect immediately and apply to taxable years beginning on or after the January 1 next following the date of enactment.

 

 

STATEMENT

 

     This bill provides a refundable gross income tax credit to a taxpayer who has gross income of less than $150,000 for the taxable year and who pays a health care service firm to have an individual employed, placed, or arranged to be placed at the residence of the taxpayer to provide in-home companion services, health care services, or personal care services.  This credit is only available to those taxpayers who are permanently and totally disabled or who are age 65 or older.

     In calculating the credit amount, the credit is limited to 20 percent of relevant expenses incurred by the taxpayer during the taxable year, and expenses that have been reimbursed or paid by an insurance company are to be excluded and cannot be claimed.