New Jersey Assembly Bill A2733

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Provides gross income tax deduction for certain donated vehicles.

Impact

If enacted, A2733 will supplement Title 54A of the New Jersey Statutes, establishing a new framework for tax deductions tied to vehicle donations specifically aimed at law enforcement. This provision encourages philanthropy towards public service entities by incentivizing taxpayers who might be considering donating their vehicles. The impact of this bill could lead to an increase in donations of vehicles to police departments and related agencies, potentially boosting their resources.

Summary

Assembly Bill A2733 aims to introduce a gross income tax deduction for taxpayers who donate certain vehicles to state or local law enforcement agencies. This legislation allows individuals to deduct the fair market value of a qualified vehicle from their gross income in the year of the donation. To claim this deduction, taxpayers must include an independent appraisal for vehicles valued over $500. The bill specifies that governmental agencies are not required to accept donations of vehicles.

Contention

One notable point of contention surrounding A2733 involves the potential value placed on donated vehicles and the degree of financial benefit received by the donating taxpayers. Critiques may arise around the fairness of promoting tax deductions in this manner, particularly concerning how it aligns with broader fiscal policies and implications for state revenue. Moreover, discussions may surface on whether the bill sufficiently addresses the complexities around vehicle valuations and the criteria for 'qualified vehicles,' thereby ensuring that the measure operates effectively within the realm of tax law.