Bill Text: NJ A4305 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides gross income tax deduction for in vitro fertilization treatment expenses.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced) 2024-05-10 - Introduced, Referred to Assembly Health Committee [A4305 Detail]
Download: New_Jersey-2024-A4305-Introduced.html
Sponsored by:
Assemblyman AL BARLAS
District 40 (Bergen, Essex and Passaic)
SYNOPSIS
Provides gross income tax deduction for in vitro fertilization treatment expenses.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a gross income tax deduction for in vitro fertilization treatment expenses and supplementing chapter 3 of 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 resident taxpayer shall be allowed to deduct from gross income 50 percent of the amount paid by the taxpayer during the taxable year for costs related to in vitro fertilization (IVF) treatment for the taxpayer or the taxpayer's spouse or domestic partner. To be eligible for this deduction, the amounts paid shall not be:
(1) covered by health insurance plans issued by hospital, medical, and health service corporations; commercial group insurers; health maintenance organizations; the State Health Benefits Program, or the School Employees Health Benefits Plan; and
(2) otherwise deductible from the taxpayer's gross income pursuant to N.J.S.54A:3-3.
b. For the purposes of this section, "in vitro fertilization" means all medical and laboratory procedures that are required to effectuate the formation of a human embryo outside the human body.
2. This act shall take effect immediately and shall apply to taxable years beginning on or after the January 1 next following the date of enactment.
STATEMENT
The bill provides taxpayers who are New Jersey residents the ability to claim a gross income tax deduction related to in vitro fertilization (IVF) procedures for the treatment of infertility.
Specifically, this bill allows a taxpayer to deduct from gross income 50 percent of the amount paid by the taxpayer during the taxable year for costs related to IVF treatment for the taxpayer or the taxpayer's spouse or domestic partner, provided that these costs are not reimbursed by certain health insurance plans, and are not otherwise deducted from the taxpayer's gross income as an allowable medical expense.
Currently, a resident who files a New Jersey Gross Income Tax return can deduct from gross income certain unreimbursed medical expenses paid during the tax year for the taxpayer, the taxpayer's spouse or domestic partner, and any dependents claimed. However, a taxpayer can only deduct expenses that are more than two percent of the taxpayer's gross income. In general, medical expenses allowed for federal tax purposes are allowed for New Jersey tax purposes. For federal individual income tax purposes, the Internal Revenue Service allows a taxpayer to deduct medical expenses for fertility enhancement procedures, such as IVF and including temporary storage of eggs or sperm.
The gross income deduction in this bill provides a benefit to taxpayers who are not covered by health insurance plans issued by hospital, medical, and health service corporations; commercial group insurers; health maintenance organizations; the State Health Benefits Program; or the School Employees Health Benefits Plan. It also provides a benefit to taxpayers who have incurred out-of-pocket expenses related to IVF treatment that are not eligible for deduction against their taxable income for New Jersey Gross Income Tax purposes.
