New Jersey Senate Bill S2386

New Jersey 2024-2025 Regular Session

• Introduced: 1/29/24
• Refer: 1/29/24
• Report Pass: 5/16/24
• Refer: 5/16/24
• Report Pass: 2/3/25
• Engrossed: 2/25/25
• Refer: 2/25/25

Caption

Provides gross income tax credit to active members of volunteer emergency service organizations for use of personal motor vehicle in performance of active duty.

Impact

If enacted, S2386 will provide direct economic benefits to volunteers who often shoulder the costs associated with their essential community services. By offering a tax credit equivalent to the IRS standard mileage rate for business travel, the bill acknowledges the out-of-pocket expenses incurred by these volunteers as they respond to emergency calls. This financial assistance is expected to enhance the recruitment and retention of volunteers, which is crucial for maintaining effective emergency services across New Jersey.

Summary

Senate Bill S2386 introduces a refundable gross income tax credit for active members of volunteer emergency service organizations, specifically targeting those who utilize their personal vehicles in the performance of their duties. The bill aims to financially support volunteers from fire departments and first aid squads by allowing them to claim a credit based on the miles traveled during active duty, with a maximum credit of $500 for individual taxpayers and $1,000 for married couples filing jointly. To qualify, members must be active volunteers in good standing and complete specific qualifying services set forth by their organizations.

Contention

Potential points of contention regarding this legislation may revolve around concerns about fiscal impacts on state tax revenues. While the bill has been introduced with the intention of supporting community safety and volunteerism, some critics might argue that implementing such tax credits could lead to budgetary constraints, ultimately impacting other public services. Additionally, there may be discussions about the fairness of the criteria for qualifying services and whether the standards set will adequately reflect the varying levels of commitment and service across different organizations.