Bill Text: NJ S2151 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides gross income tax credit for qualified union dues paid to labor organizations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Labor Committee [S2151 Detail]
Download: New_Jersey-2024-S2151-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Provides gross income tax credit for qualified union dues paid to labor organizations.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a gross income tax credit for qualified union dues paid to a labor organization during the taxable year, and supplementing chapter 4 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. For taxable years beginning on and after January 1, 2023, a taxpayer shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54:1-1 et seq., in an amount equal to the qualified union dues paid to a labor organization by the taxpayer during the taxable year.
b. To claim the credit allowed pursuant to this section, a taxpayer shall, in a form and manner prescribed by the director, provide verification of the qualified union dues paid by the taxpayer during the taxable year for which the credit is claimed.
c. The credit shall be applied after the application of any other credits allowed against the gross income tax for the taxable year. If the amount of credit allowed pursuant to this section for the taxable year, together with any other payments or credits against the tax, reduces the taxpayer's tax liability otherwise due for the taxable year to zero, any amount of credit remaining shall be paid to the taxpayer as a refund of an overpayment of tax pursuant to N.J.S.54A:9-7.
d. As used in this section:
"Director" means the Director of the Division of Taxation in the Department of the Treasury.
"Labor organization" means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and that exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.
"Qualified union dues" means the total amount of dues, fees, assessments, or other charges or expenses required of members of or public employees represented by a labor organization.
2. This act shall take effect immediately.
STATEMENT
This bill allows a refundable gross income tax credit for qualified union dues paid to labor organizations. The bill defines "qualified union dues" as the total amount of dues, fees, assessments, or other charges or expenses required of members of or public employees represented by a labor organization. The bill also defines "labor organization" as any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and that exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.
To claim the credit allowed under the bill, a taxpayer would be required to provide, in a form and manner prescribed by the Director of the Division of Taxation, verification of the qualified union dues paid by the taxpayer during the taxable year.
