Bill Text: NJ S2290 | 2022-2023 | Regular Session | Introduced


Bill Title: "Gas Price and Inflation Tax Credit Act."

Spectrum: Partisan Bill (Republican 14-0)

Status: (Introduced) 2022-05-26 - Transferred to Senate Budget and Appropriations Committee [S2290 Detail]

Download: New_Jersey-2022-S2290-Introduced.html

SENATE, No. 2290

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED MARCH 14, 2022

 


 

Sponsored by:

Senator  EDWARD DURR

 

District 3 (Cumberland, Gloucester and Salem)

Senator  STEVEN V. OROHO

District 24 (Morris, Sussex and Warren)

Senator  KRISTIN M. CORRADO

District 40 (Bergen, Essex, Morris and Passaic)

Senator  JAMES W. HOLZAPFEL

District 10 (Ocean)

Senator  DECLAN J. O'SCANLON, JR.

District 13 (Monmouth)

Senator  JOSEPH PENNACCHIO

District 26 (Essex, Morris and Passaic)

Senator  HOLLY T. SCHEPISI

District 39 (Bergen and Passaic)

Senator  ROBERT W. SINGER

District 30 (Monmouth and Ocean)

Senator  MICHAEL L. TESTA, JR.

District 1 (Atlantic, Cape May and Cumberland)

Senator  ANTHONY M. BUCCO

District 25 (Morris and Somerset)

 

 

 

 

SYNOPSIS

     "Gas Price and Inflation Tax Credit Act."

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act allowing a gross income tax credit for Tax Year 2021.

 

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

 

     1.    a. For Tax Year 2021, taxpayers who are married individuals filing a joint return and an individual filing as a head of household or as a surviving spouse with gross income of $250,000 or less shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in the amount of $500, and taxpayers who are married individuals filing separately or individuals filing as a single taxpayer with gross income of $125,000 or less shall be allowed a credit against the tax otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in the amount of $250.

     b.    The amount of the credit allowed pursuant to this section shall be applied against the tax otherwise due under N.J.S.54A:1-1 et seq., after all other credits and payments. If the credit exceeds the amount of tax 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.

     c.     If a taxpayer has already filed their Tax Year 2021 gross income tax return, the Director of the Division of Taxation shall credit the amount owed to the taxpayer pursuant to this section based on the taxpayer's filing status.

 

     2. This act shall take effect immediately.

 

 

STATEMENT

 

     This bill allows a tax credit against the gross income tax for Tax Year 2021 to help offset soaring gas prices and the worst inflation in 40 years.

     The credit amount is $500 for married individuals filing a joint return and an individual filing as a head of household or as a surviving spouse with income of $250,000 or less, and $250 for individuals who are single or married and filing separately with income of $125,000 or less. The credit is refundable, meaning that any excess credit beyond the taxpayer's tax liability will be paid to the taxpayer in the form of tax refund.

     Together with the tax credit proposed in Senate Bill No. 2243 of the 2022-2023 session, the sponsors intend to quickly prevent a projected $4.6 billion over-collection from taxpayers in the current State fiscal year. Current year tax over-collections are attributable to the worst inflation in 40 years and other factors causing taxpayers to pay more in taxes than budgeted or needed and it should be given back. Excess tax collections, if not prevented, will remain unused and unallocated in State accounts.  Getting money back into the pockets of taxpayers will not only provide appropriate and immediate relief from soaring gas prices, over-taxation, and inflation, it will help increase economic activity and prevent the value of over-collections from eroding over time due to inflation.

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