SENATE, No. 784
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Co-Sponsored by:
Senators Addiego and O'Scanlon
SYNOPSIS
Provides gross income tax exclusion for attorney's fees and costs received in connection with certain unlawful discrimination, unlawful retaliation, and qui tam claims or actions.
CURRENT VERSION OF TEXT
As amended by the Senate on February 26, 2018.
An Act providing a gross income tax exclusion for attorney's fees and costs received in connection with certain unlawful discrimination 1[or] ,1 unlawful retaliation 1, and qui tam1 claims or actions, supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Gross income shall not include amounts received by the taxpayer for attorney's fees and costs or amounts paid by, or on behalf of the taxpayer, for attorney's fees and costs in connection with an informal claim or legal action, whether by suit or agreement and whether as a lump sum or periodic payment, for unlawful discrimination or unlawful retaliation. The amount of the exclusion shall be limited to the 1[amount of the gross judgment or settlement, including an]1 award 1or payment1 of attorney's fees and costs 1[,]1 to the taxpayer 1, without regard to any other amount of judgment or settlement1.
b. 1Gross income shall not include amounts incurred by the taxpayer for attorney's fees and costs or amounts paid by, or on behalf of the taxpayer, for attorney's fees and costs, and payments to other relators pursuant to a sharing agreement, in connection with the amount of awards recovered by the taxpayer pursuant to the federal False Claims Act, 31 U.S.C. s.3730(b), the "New Jersey False Claims Act," P.L.2007, c.265 (C.2A:32C-1 et seq.), or any other similar qui tam action.
c.1 As used in this section, "unlawful discrimination or unlawful retaliation" means an act that is unlawful under a provision of federal, state, or local law, or common law claims permitted under federal, state, or local law:
(1) providing for the enforcement of civil rights, or
(2) regulating any aspect of the employment relationship, including claims for wages, severance, overtime, compensation, breach of contract, or benefits, or prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights, engaging in protected whistleblowing activity, or taking other actions permitted or protected by federal, state, local, or common law.
2. This act shall take effect immediately and apply to taxable years ending after its date of enactment.