Provides gross income tax deduction for certain home elevation expenses.
Impact
The implementation of A3151 is expected to have significant implications for state laws regarding financial incentives related to flood mitigation. By enabling a tax deduction for home elevation, the bill aims to encourage investment in flood resilience, particularly among vulnerable populations in designated flood-prone areas. This change will potentially reduce the financial burden on residents required to purchase flood insurance and could lead to lower premiums for those who elevate their homes above the required flood levels. The deduction is retroactive to 2020, making it accessible for past taxpayers who may have undertaken elevation work.
Summary
A3151 is a legislative bill introduced in New Jersey that provides a gross income tax deduction for certain home elevation expenses incurred by taxpayers residing in Special Flood Hazard Areas, as designated by FEMA. Specifically, this bill allows qualified taxpayers to deduct 25 percent of expenses paid to registered home elevation contractors for jacking and resetting their primary residences. The measure is tailored to assist homeowners whose properties are below the base flood elevation and who face higher flood insurance costs, thereby incentivizing the elevation of homes to reduce future insurance liabilities.
Contention
While there is a proactive intent behind A3151, notable points of contention arise from its restrictions. Notably, taxpayers who receive home elevation grants or benefits from other FEMA programs are not eligible for the tax deduction under this bill. Critics may argue that this creates a disparity, as those who do not have access to grants might feel pressured to cover elevation costs entirely out-of-pocket without significant financial relief. This limitation raises questions about the most equitable methods of supporting flood-prone communities and whether a tax deduction alone will sufficiently facilitate the necessary home elevation work needed for their safety.