Bill Text: NJ A1556 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides gross income tax credit for donations to eligible schools to assist in funding of student meals, medical supplies, and playground equipment.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A1556 Detail]
Download: New_Jersey-2024-A1556-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
Assemblyman GERRY SCHARFENBERGER
District 13 (Monmouth)
SYNOPSIS
Provides gross income tax credit for donations to eligible schools to assist in funding of student meals, medical supplies, and playground equipment.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a credit against the gross income tax for certain donations to eligible schools, supplementing Title 54A of the New 4 Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For taxable years beginning on or after January 1, 2022, a taxpayer that makes a qualified donation to an eligible school 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 10 percent of the value of the qualified donation. The total amount of the credit for a taxpayer shall not exceed $500 for a taxable year.
b. In order to claim the credit allowed pursuant to this section, a taxpayer shall obtain a written statement from the eligible school substantiating each qualified donation made during the taxable year. The eligible school, upon receipt of the qualified donation from the taxpayer, shall issue to the taxpayer a written statement, signed and dated by an individual authorized to accept the donation on behalf of the eligible school, that contains: the amount of the donation; the name and address of the taxpayer; and the name and address of the eligible school. When filing a return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of each written statement issued to the taxpayer by an eligible school during the taxable year.
c. A credit allowed pursuant to this section shall not reduce the tax liability otherwise due pursuant to N.J.S.54A:1-1 et seq. for a taxable year to an amount less than zero.
d. As used in this section:
"Eligible school" means a public or nonpublic elementary or secondary school in this State.
"Qualified donation" means a donation made to an eligible school for one or more of the following purposes: funding for student participation in a free or reduced meal program at the eligible school; the purchase of medical supplies to be used for the treatment of students at the eligible school; and the purchase of playground equipment, including accompanying shade structures, for use at the eligible school.
2. This act shall take effect immediately.
STATEMENT
This bill allows a nonrefundable gross income tax credit for qualified donations to eligible schools. The tax credit amount is equal to 10 percent of the value of the qualified donations, and is capped at $500 per taxable year.
Under the bill, "qualified donation" means a donation made to an eligible school for one or more of the following purposes: funding for student participation in a free or reduced meal program at the eligible school; the purchase of medical supplies to be used for the treatment of students at the eligible school; and the purchase of playground equipment, including accompanying shade structures, for use at the eligible school. The bill defines "eligible school" as a public or nonpublic elementary or secondary school in this State.
