Bill Text: NJ A5716 | 2020-2021 | Regular Session | Introduced
Bill Title: Allows gross income tax credit for volunteer emergency services and volunteer work.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-05-17 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A5716 Detail]
Download: New_Jersey-2020-A5716-Introduced.html
Sponsored by:
Assemblywoman SERENA DIMASO
District 13 (Monmouth)
SYNOPSIS
Allows gross income tax credit for volunteer emergency services and volunteer work.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a gross income tax credit for volunteer emergency services and volunteer work, 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. A taxpayer shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for volunteer emergency services and volunteer work. The amount of the credit shall be $100 for every 40- hour increment of the taxpayer's volunteer emergency services or volunteer work, or both, during the taxable year, up to $2,000.
b. As used in this section:
"Volunteer emergency services" means unpaid direct participation, whether as a trainee or otherwise, in an emergency services organization's efforts to provide emergency medical care, rescue services, transport for patients, or fire protection services;
"Volunteer work" means unpaid activity, whether as a trainee or otherwise, performed for an organization that is exempt from federal income tax pursuant to section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. s.501(c)(3)).
c. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed pursuant to the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. for a taxable year shall be as prescribed by the director. The amount of the credit applied under this section against the tax imposed for a taxable year, together with any other credits allowed by law, shall not reduce the taxpayer's tax liability to an amount less than zero.
d. To be eligible for a credit pursuant to this section, a taxpayer shall obtain certification from each organization for which the taxpayer performed volunteer emergency services or volunteer work, which certification shall note the number of hours that the taxpayer performed volunteer emergency services or volunteer work for that organization during the taxable year. The director is authorized to promulgate procedures and forms by which a taxpayer may submit the certification to the director.
2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill allows gross income taxpayers to claim a credit against their tax liability if they perform volunteer emergency services or volunteer work during the tax year.
The credit amount is $100 for every 40-hour increment of volunteer emergency services and volunteer work, but the credit cannot exceed $2,000. "Volunteer work" is unpaid activity for a 501(c)(3) organization, and "volunteer emergency services" is unpaid direct participation in an emergency services organization's efforts to provide emergency medical care, rescue services, transport for patients, or fire protection services.
To be eligible for the credit, a taxpayer will be required to obtain certification from each organization for which the taxpayer volunteered, which certification is required to note the number of hours that the taxpayer volunteered for that organization.
