Bill Text: NJ S2953 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides gross income tax deduction for the provision of certain medical and dental services free of charge.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2013-09-12 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2953 Detail]
Download: New_Jersey-2012-S2953-Introduced.html
Sponsored by:
Senator JENNIFER BECK
District 11 (Monmouth)
SYNOPSIS
Provides gross income tax deduction for the provision of certain medical and dental services free of charge.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a gross income tax deduction for the provision of certain medical and dental services free of charge, 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. For taxable years beginning on or after January 1, 2013, a taxpayer shall be allowed to deduct from gross income the fair market value of qualified dental services and qualified medical services provided at a qualified facility by the taxpayer free of charge for patients that are residents of this State. A taxpayer shall not deduct more than $50,000 of qualified dental services and qualified medical services for a taxable year, pursuant to this section.
b. The Director of the Division of Taxation in the Department of the Treasury shall adopt regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) and prescribe forms to administer this section, which forms shall include but not be limited to a form for documenting the fair market value of the qualified dental services and qualified medical services provided for the taxable year.
c. As used in this section:
"Clinic" means an out-patient facility equipped and maintained to support the licensed practice of a dentist or physician.
"Federally qualified health center" means an entity that qualifies as a federally qualified health center pursuant to 42 C.F.R. 405.2430.
"Qualified dental service" means the practice of dentistry by a dentist licensed by the New Jersey State Board of Dentistry.
"Qualified facility" means an in-State clinic or federally qualified health center.
"Qualified medical service" means the practice of medicine or surgery by a physician licensed by the State Board of Medical Examiners.
2. This act shall take effect immediately.
STATEMENT
This bill provides a gross income tax deduction for the provision of medical or dental services free of charge at New Jersey clinics and federally qualified health centers. The purpose of this bill is to incentivize greater charitable participation in the provision of medical and dental care for New Jersey residents.
Beginning with taxable year 2013, the bill allows licensed dentists and physicians to claim up to $50,000 of deductible expenses in providing free care to New Jersey residents at in-State clinics and federally qualified health centers.
To implement the bill, the Division of Taxation is directed to adopt regulations and prescribe forms, including, but not limited to, a form for documenting the fair market value of qualified medical and dental services provided for a taxable year.
