New Jersey Assembly Bill A935

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Provides gross income tax credit to certain taxpayers who pay for certain in-home services through health care service firm.

Impact

The bill directly impacts state tax laws by supplementing the New Jersey Gross Income Tax Act, introducing provisions for a tax credit that legislators believe will incentivize the hiring of in-home care providers. This provision is significant in promoting better access to personal care, which is crucial for maintaining a quality living standard among the elderly and disabled populations. By establishing this tax credit, the state aims to support skilled service providers and create a more sustainable model for in-home care, which can potentially decrease long-term healthcare costs if it leads to better health outcomes.

Summary

Assembly Bill A935 aims to provide a refundable gross income tax credit to New Jersey taxpayers with a gross income of less than $150,000, specifically targeting those who incur expenses for in-home companion services, health care services, or personal care services. The credit is limited to 20% of the expenses paid to a registered health care service firm for employing an individual to provide such services at the taxpayer's residence. Only individuals who are permanently and totally disabled or who are aged 65 and older are eligible for this credit. The bill is designed to alleviate some of the financial burdens associated with obtaining necessary care for vulnerable populations.

Contention

While the bill has garnered support as a means to provide financial relief and support for the elderly and disabled, it may face scrutiny regarding budgetary impacts and the implications of expanding tax credits. Critics may argue that the measure could lead to increased costs for the state, or they may highlight concerns over the implementation and effectiveness of the program. Furthermore, the definition and parameters surrounding what constitutes 'health care services' and the role of 'health care service firms' could be topics of debate, particularly if there is a push for transparency and accountability in the services provided.