Bill Text: NJ A4517 | 2024-2025 | Regular Session | Introduced
Bill Title: Allows gross income tax deduction for charitable contributions made to nonprofit entities supported by State funds or subsides.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-06-06 - Introduced, Referred to Assembly Aging and Human Services Committee [A4517 Detail]
Download: New_Jersey-2024-A4517-Introduced.html
Sponsored by:
Assemblywoman AURA K. DUNN
District 25 (Morris and Passaic)
SYNOPSIS
Allows gross income tax deduction for charitable contributions made to nonprofit entities supported by State funds or subsidies.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a gross income tax deduction for charitable contributions made to certain nonprofit entities and supplementing chapter 3 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer shall be allowed to deduct from gross income the amount of charitable contributions made during the taxable year to a nonprofit entity that is a recipient of State funds or an economic development subsidy in that year. The deduction allowed pursuant to this section shall not exceed $10,000 for a married taxpayer filing a joint return or an individual filing as head of household, and $5,000 for a married individual filing a separate return, unmarried individuals other than individuals filing as head of household, or a surviving spouse.
b. As used in this section:
²Economic development subsidy² means a provision of financial assistance to a business entity by or from a State public body with a value of greater than $500 for the purpose of stimulating economic development in New Jersey, including, but not limited to, any bond, grants, loan, loan guarantee, matching fund, tax credit, or other type of tax incentive. ²Economic development subsidy² shall not mean any contract under which a State public body purchases or otherwise procures goods, services, or construction on an unsubsidized basis, including any contract solely construction or renovation owned by a State public body.
²Nonprofit entity² means a corporation, association, or organization, which is not operated for pecuniary profit of any private shareholders or individual, and which is not a component of the federal, State, or local governments.
2. This act shall take effect immediately and apply to charitable contributions made in taxable years beginning on or after the January 1 next following the date of enactment.
STATEMENT
This bill allows a New Jersey gross income tax deduction to taxpayers for charitable contributions that are made to certain nonprofit entities.
New Jersey gross income taxpayers would be allowed to deduct from gross income the amount of charitable contributions that are made during the taxable year to a nonprofit entity that is the recipient of State funds or an economic development subsidy in that tax year. The bill provides that the amount of the deduction may not exceed $10,000 for married taxpayers filing a joint return and individuals filing as heads of household, and $5,000 for single filers, married taxpayers filing separately, and surviving spouses.
The bill defines ²economic development subsidy² as a provision of financial assistance to a business entity by or from a State public body with a value of greater than $500 for the purpose of stimulating economic development in New Jersey, including, but not limited to, any bond, grants, loan, loan guarantee, matching fund, tax credit, or other type of tax incentive. Under the bill, ²economic development subsidy² would not mean any contract under which a State public body purchases or otherwise procures goods, services, or construction on an unsubsidized basis, including any contract solely construction or renovation owned by a State public body.
The bill defines ²nonprofit entity² as a corporation, association, or organization, which is not operated for pecuniary profit of any private shareholders or individual, and which is not a component of the federal, State, or local governments.
