New Jersey Senate Bill S739

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22
• Report Pass: 10/31/22

Caption

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

Impact

The introduction of S739 is expected to significantly influence state laws related to income tax for elderly and disabled individuals. By offering a refundable tax credit, the state encourages taxpayers to seek necessary in-home services, thus potentially improving the quality of life for a vulnerable segment of the population. The bill directly supplements the New Jersey Gross Income Tax Act and supports low-income residents dealing with health and mobility challenges.

Summary

S739 is a proposed bill in New Jersey that aims to provide a gross income tax credit to certain taxpayers who pay for in-home services through health care service firms. This credit is specifically aimed at individuals with gross incomes of less than $150,000 who are either permanently and totally disabled or aged 65 or older. The credit would cover 20 percent of the expenses incurred for these services, which can range from companion services to personal care.

Contention

While the bill has received favorable reports and appears to have bipartisan support within initial discussions, it could generate debate over fiscal implications, especially concerning how such tax credits may impact state revenues. There may also be discussions regarding the adequacy of $150,000 gross income cap in terms of addressing the needs of all potential beneficiaries. Furthermore, as it prioritizes services provided through health care firms, there could be scrutiny about the accessibility and affordability of these services and whether they would effectively meet the diverse needs of elderly and disabled populations.