New Jersey Assembly Bill A920

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Allows gross income tax deduction for 50% of contributions of $100 or more to domestic violence shelters.

Impact

The implementation of A920 is expected to positively impact state laws by reinforcing support for domestic violence victims while simultaneously incentivizing taxpayers to contribute to community services. This financial benefit may lead to an increase in donations to qualified shelters, thereby improving the resources they have to support victims. The bill requires that participating shelters comply with standards set by the Department of Human Services, ensuring that contributions are directed to legitimate organizations that provide necessary services to those in need.

Summary

Assembly Bill A920 is a legislative proposal introduced in New Jersey that allows taxpayers to deduct 50% of their contributions, amounting to $100 or more, to domestic violence shelters from their gross income tax. This initiative aims to encourage charitable contributions to domestic violence shelters, providing financial support for these organizations that play a crucial role in assisting victims of domestic violence. By incentivizing contributions through tax deductions, the bill seeks to enhance funding for vital services offered by these shelters, which often struggle with financial limitations.

Contention

While the bill has altruistic goals, it may also raise questions regarding the selection of shelters that qualify for this tax deduction. The requirement for shelters to provide proof of compliance with regulatory standards highlights the need for proper oversight and evaluation. Critics may argue that the legislation does not address all victims’ needs comprehensively, potentially leaving out smaller or newly established shelters that may not yet meet stringent criteria. Moreover, some may contend that the extent of the tax deduction may not be sufficient to stimulate substantial giving or truly incentivize donors.