New Jersey Assembly Bill A5372

New Jersey 2022-2023 Regular Session

• Introduced: 5/8/23
• Refer: 5/8/23

Caption

Allows gross income tax deduction for charitable contributions to certain New Jersey-based charitable organizations during public health emergency.

Impact

If enacted, A5372 would affect the state's gross income tax laws by permitting deductions aimed at encouraging charitable giving to organizations based in New Jersey. The intent behind the bill is to incentivize donations during challenging times, particularly in situations of public health crises. By allowing taxpayers to deduct these contributions from their gross income, the bill aims to provide financial relief and support for local charitable organizations that serve the community during emergencies.

Summary

Assembly Bill A5372 proposes to allow a gross income tax deduction for charitable contributions made to certain New Jersey-based charitable organizations during a declared public health emergency. The bill defines the conditions under which the tax deduction can be claimed, specifically during the period of a public health emergency declared by the Governor and for 30 days following the end of such emergencies. For taxpayers, the bill sets a limit of $10,000 for joint filers and head of households, while single filers and others have a limit of $5,000.

Contention

There may be points of contention regarding the definition of 'qualified New Jersey-based charitable organizations' as outlined in the bill. The criteria require organizations to be registered and maintain a physical presence in New Jersey. Critics might argue that this could exclude smaller or newer organizations that provide valuable services but do not yet meet registration requirements. Additionally, the bill’s focus on donations during emergency periods may raise concerns about the balance between incentivizing charitable donations and potential revenue loss for the state during critical budget times.