Bill Text: NJ A4946 | 2020-2021 | Regular Session | Introduced
Bill Title: Provides gross income tax credits for certain education and child care expenditures incurred by taxpayers with qualifying children engaged in virtual or remote instruction because of COVID-19 pandemic.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced - Dead) 2020-11-09 - Introduced, Referred to Assembly Women and Children Committee [A4946 Detail]
Download: New_Jersey-2020-A4946-Introduced.html
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Provides gross income tax credits for certain education and child care expenditures incurred by taxpayers with qualifying children engaged in virtual or remote instruction because of COVID-19 pandemic.
CURRENT VERSION OF TEXT
As introduced.
An Act providing gross income tax credits for certain education and child care expenditures incurred by taxpayers with qualifying children engaged in virtual or remote instruction as a result of the COVID-19 pandemic.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) A taxpayer with a qualifying child participating in a program of virtual or remote instruction adopted pursuant to section 9 of P.L.1996, c.138 (C.18A:7F-9) or section 2 of P.L.2020, c.27 (C.18A:46-21.2) in response to the COVID-19 pandemic shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent of the total qualified education expenditures and qualified child care expenditures incurred by the taxpayer, provided that the expenditures are certified by the Director of the Division of Taxation in the Department of the Treasury.
(2) The amount of the tax credit allowed to a taxpayer annually pursuant to this section shall not exceed $3,000 per qualifying child.
b. To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application prescribed by the director in consultation with the Commissioner of Education.
c. The amount of the tax credit applied under this section against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year, when taken together with any other payments, credits, deductions, and adjustments allowed by law shall not reduce the tax liability of the taxpayer to an amount less than zero. The amount of the tax credit otherwise allowable under this section that cannot be applied for the taxable year due to the limitations of this subsection or under other provisions of N.J.S.54A:1-1 et seq., may be carried forward, if necessary to the taxable year next following the taxable year for which the tax credit was allowed.
d. In the case of married individuals filing a separate return, only one individual shall be permitted to claim the credit pursuant to this section in the taxable year.
e. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the gross income tax for the taxable year shall be prescribed by the director. No tax credit shall be allowed pursuant to this section for any costs or expenses included in the calculation of any other credit or exemption granted pursuant to a claim made on a tax return filed with the director for a period of time that coincides with the taxable year for which a tax credit authorized pursuant to this section is allowed.
f. As used in this section:
"Qualifying child" means as the term is defined in subsection (c) of section 152 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.152).
"Qualified education expenditures" includes the purchase of materials necessary to support virtual or remote instruction as determined by the Commissioner of Education during any day in the taxable year in which the qualifying child was required to participate in virtual or remote instruction.
"Qualified child care expenditures" includes expenses paid by the taxpayer to a child care center licensed pursuant to the "Child Care Center Licensing Act," P.L.1983, c.492 (C.30:5B-1 et seq.) to ensure that the taxpayer can be gainfully employed during any day in the taxable year in which the qualifying child was required to participate in virtual or remote instruction.
2. This act shall take effect immediately and shall apply to taxable years during which both the Public Health Emergency and the State of Emergency declared by the Governor in Executive Order No. 103 of 2020 and any extension thereof concerning the COVID-19 pandemic are ongoing.
STATEMENT
This bill provides gross income tax credits to taxpayers with qualifying children who participate in virtual or remote instruction in response to the coronavirus pandemic. The credit is equal to 25 percent of the total qualified education and child care expenditures incurred by the taxpayer, except that the amount cannot exceed $3,000 per qualifying child. The credit can be claimed by only one individual in the case of married individuals filing a separate return. The amount of the credit applied under this bill when combined with other credits, deductions, and any other payments cannot reduce the taxpayer's liability to an amount less than zero. A taxpayer can carry forward any remaining amount of the credit to the next taxable year.
As used in the bill, the term "qualifying child" means the same as "qualifying child" according to subsection (c) of section 152 of the federal Internal Revenue Code of 1986, but only for children who are receiving remote or virtual K-12 instruction during the taxable year pursuant to section 9 of P.L.1996, c.138 or section 2 of P.L.2020, c.27. "Qualifying education expenditures" includes the purchase of materials necessary to support virtual or remote instruction as determined by the Commissioner of Education and during any day in the taxable year in which the qualifying child was required to participate in virtual or remote instruction. "Qualified child care expenditures include expenses paid by the taxpayer to a licensed child care center so that the taxpayer may remain employed during any day in the taxable year in which the qualifying child was required to participate in virtual or remote instruction.
A taxpayer cannot claim any other credit for the same costs or expenses for which this credit is claimed.
The bill will take effect immediately and will expire when the State of Emergency and Public Health Emergency declared by the Governor in Executive Order No. 103 of 2020 and any extension thereof expires.
