New Jersey Assembly Bill A4305

New Jersey 2024-2025 Regular Session

• Introduced: 5/10/24
• Refer: 5/10/24

Caption

Provides gross income tax deduction for in vitro fertilization treatment expenses.

Impact

If passed, the bill will specifically benefit those New Jersey taxpayers, including individuals, spouses, or domestic partners, who pay out-of-pocket for IVF treatments. The law is structured to complement existing provisions that allow deductions for unreimbursed medical expenses, which currently require that expenses exceed 2% of a taxpayer's income. The proposal is particularly significant for residents who may not have adequate insurance coverage for IVF procedures, thereby providing equal opportunities for those who might otherwise struggle financially to afford such treatments.

Summary

Assembly Bill A4305 proposes a gross income tax deduction for New Jersey residents who incur expenses related to in vitro fertilization (IVF) treatments. The bill allows taxpayers to deduct 50% of the amounts paid for IVF from their gross income, provided that these expenses are not reimbursed by certain health insurance plans and are not already deductible under existing state tax laws. This legislation aims to alleviate some of the financial burdens associated with infertility treatments and make them more accessible to couples seeking assistance in starting families.

Contention

As with many health care-related policy proposals, there may be points of contention regarding the bill. Critics might argue that the tax deduction could disproportionately benefit higher-income individuals who can afford the initial costs of IVF, potentially raising equity concerns in the allocation of tax benefits. On the other hand, advocates of the bill emphasize the necessity of supporting families facing infertility challenges and the high costs associated with such medical interventions. Overall, the debate may center around the balance of providing supportive measures for infertility treatment while ensuring fair tax policy.