New Jersey Senate Bill S1232

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Extends gross income tax medical expense deduction to certain cord blood banking services.

Impact

If enacted, S1232 would amend existing tax laws related to medical expenses, specifically regarding what qualifies as a deductible medical cost. Currently, federal guidelines do not recognize cord blood banking service expenses as allowable deductions unless they are related to an immediate medical condition. Thus, this bill aligns state law with the aim of encouraging more families to consider cord blood banking by reducing their overall tax liability associated with this medical expense.

Summary

Senate Bill S1232 proposes to extend New Jersey's gross income tax medical expense deduction to include qualifying costs associated with umbilical cord blood banking services. The intention behind this change is to alleviate financial burdens for New Jersey taxpayers opting to bank cord blood, an important procedure that can facilitate medical treatments for a range of health conditions in the future. By allowing this deduction, the bill aims to promote awareness and utilization of cord blood banking among families in the state.

Contention

Debate around SB S1232 is expected to center on issues of fiscal responsibility and the implications of broadening tax deductions. Proponents of the bill argue that it fosters greater healthcare accessibility and supports families by providing financial incentives for preventive healthcare measures. Conversely, critics might argue about the potential loss of tax revenue for the state and question the necessity of prioritizing this niche medical service, especially in the context of broader health policy needs.