ASSEMBLY, No. 899

STATE OF NEW JERSEY

217th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION

Sponsored by:

Assemblywoman  VALERIE VAINIERI HUTTLE

District 37 (Bergen)

Co-Sponsored by:

Assemblywoman Handlin

SYNOPSIS

     Allows New Jersey gross income tax deduction for charitable contributions for Hurricane Sandy relief in New Jersey.

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

An Actallowing a charitable contribution tax deduction under the New Jersey gross income tax for contributions for Hurricane Sandy relief in New Jersey, 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, not in excess of $10,000, of charitable contributions made to support emergency response efforts and for relief from and mitigation of damage and destruction in New Jersey attributable to Hurricane Sandy, contributed from October 31, 2012 through April 15, 2013, in the taxable year in which made, equal to the amount allowed or allowable to the taxpayer for the same 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 2012 and 2013.

STATEMENT

     This bill allows a charitable contribution tax deduction under the New Jersey gross income tax for charitable contributions not in excess of $10,000 made to support emergency response efforts and for relief from and mitigation of damage and destruction in New Jersey attributable to Hurricane Sandy, contributed from October 31, 2012 through April 15, 2013.

     This limited charitable deduction for each of two taxable years of up to $10,000 per year will follow the overall guidelines for the federal income tax deduction for charitable donations and will be 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 federal income tax deduction is an itemized deduction for "charitable contributions," as defined by Internal Revenue Code section 170.  The contribution must be made from October 31, 2012 through April 15, 2013 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 the increased efforts of residents to donate towards emergency response efforts and for relief from and mitigation of the unprecedented and widespread damage caused by Hurricane Sandy. New Jersey should recognize and support the personal charitable contributions New Jerseyans make to respond to the overall damage, destruction, and costs that are the results of this devastating storm.  Further, this new tax deduction will encourage New Jerseyans to continue to give philanthropic gifts to charitable organizations that continue to address the losses and suffering that have affected millions of households in every area of New Jersey.