Bill Text: NJ S2302 | 2018-2019 | Regular Session | Introduced
Bill Title: Allows charitable contribution tax deductions under New Jersey gross income tax.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-03-22 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2302 Detail]
Download: New_Jersey-2018-S2302-Introduced.html
SENATE, No. 2302
STATE OF NEW JERSEY
218th LEGISLATURE
INTRODUCED MARCH 22, 2018
Sponsored by:
Senator ROBERT M. GORDON
District 38 (Bergen and Passaic)
SYNOPSIS
Allows charitable contribution tax deductions under New Jersey gross income tax.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a charitable contribution tax deduction under the New Jersey gross income tax, 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 taxpayer shall be allowed to deduct from gross income the amount of charitable contributions made in the taxable year equal to the amount allowed or allowable to the taxpayer for the federal taxable year under section 170 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.170.
2. This act shall take effect immediately and apply to taxable years beginning on or after the January 1 next following enactment.
STATEMENT
This bill allows gross income tax deductions for charitable contributions made in the tax year, as allowed under section 170 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.170.
The deduction mirrors the federal income tax deduction and is allowed regardless of whether the federal itemized deduction is taken by the taxpayer. Thus, the deduction is equal to the amount "allowable" by Internal Revenue Code section 170, not just the deduction allowed and taken. The deduction is an itemized deduction for "charitable contributions," as defined by Internal Revenue Code section 170. Generally, a "charitable contribution" is a contribution or gift to or for the use of: a state or its political subdivision; a corporation or trust organization created under United States law that is organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals; a domestic post or organization of veterans; a domestic fraternal society order or association operating under the lodge system, if the order uses the gift for charitable purposes; or a non-profit cemetery or burial company. The contribution must be made to a government or to an organization that is granted status by the Internal Revenue Service as an organization eligible to receive tax-deductible charitable contributions.
New Jersey is one of only a handful of states that tax personal income, but do not provide charitable contribution deductions. This bill responds to increased constituent desires to donate after terrorist attacks and national and international natural disasters. It also responds to several changes in federal tax law under the federal "Tax Cuts and Jobs Act," Pub.L.115-97, which may have the effect of reducing the incentive for many taxpayers to itemize their personal deductions, thereby reducing the federal tax incentive for charitable giving. New Jersey should recognize and reward the charitable contributions New Jerseyans make. Further, this new tax deduction will encourage New Jerseyans to continue to give philanthropic gifts to deserving organizations.
