NJ
New Jersey Senate Bill S820

New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S820

Introduced
1/9/24  

Caption

Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

Impact

The enactment of S820 would have a significant effect on state tax laws by allowing homeowners and renters to benefit from tax deductions for repairs and improvements. This measure can lead to enhanced property values and improved living conditions, thereby promoting the safety and welfare of communities in New Jersey. By facilitating home maintenance, the bill aligns with broader state goals of supporting residential stability and economic well-being. Moreover, with no limit set on the deduction amount, this legislation can potentially encourage higher levels of spending on home repairs.

Summary

Bill S820, introduced in the New Jersey Legislature, aims to provide a gross income tax deduction for homeowners and renters who undertake functional improvements and home repairs to their primary residences. The bill specifies that taxpayers can deduct amounts incurred during the taxable year that materially improve the operating condition of their homes or prolong their functional life. This initiative is seen as an effort to relieve some of the financial burdens associated with maintaining a home and to encourage individuals to invest in their properties.

Contention

While the bill seems straightforward, potential points of contention may arise concerning the definition of what constitutes a 'functional improvement' versus aesthetic changes. The bill explicitly excludes repairs that are made for purposes other than improving functionality or habitability, which could lead to debates regarding interpretations of these terms. Additionally, the tax implications for married couples filing separately, who may each claim half of the deduction, could spark discussions about fairness and equity in tax deductions, raising questions about the implications for joint versus separate tax filings.

Latest S820 Activity

Companion Bills

NJ A1106

Same As Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ A970

Carry Over Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ S1750

Carry Over Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

Previously Filed As

NJ S1750

Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ A970

Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ A1106

Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ S3988

Allows tax credit for expenses incurred for medical insurance premiums and deductible payments for certain taxpayers under gross income tax.

NJ HB07269

An Act Establishing A Personal Income Tax Deduction For A Portion Of The Rent Paid By Certain Taxpayers For A Primary Residence In The State.

NJ S182

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

NJ S3457

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

NJ A1358

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

NJ A4887

Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.

NJ A5476

Provides $5,000 gross income tax deduction for taxpayers who incur certain commuter expenses.

Similar Bills

NJ S1750

Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ A1106

Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ A970

Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

NJ A4732

Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

NJ S3232

Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

NJ S1360

Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

NJ A1238

Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

NJ A5482

Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator or home backup battery system for resident taxpayer's principal residence.