SENATE, No. 2943

STATE OF NEW JERSEY

213th LEGISLATURE

 

INTRODUCED JUNE 18, 2009

 


 

Sponsored by:

Senator CHRISTOPHER J. CONNORS

District 9 (Atlantic, Burlington and Ocean)

Senator  ANTHONY R. BUCCO

District 25 (Morris)

 

 

 

 

SYNOPSIS

     Allows corporation business tax credit and gross income tax credit for certain unreimbursed psychiatric treatment of veterans.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act allowing a corporation business tax credit and gross income tax credit for certain unreimbursed psychiatric treatment of veterans, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  (1)  In privilege periods commencing after the effective date of P.L.    , c.   (C.     ) (pending before the Legislature as this bill), a taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the value, not in excess of $10,000, of qualified uncompensated psychiatric treatment provided by the taxpayer to veterans.  The amount of the credit provided under this section shall not exceed $85 per hour of qualified uncompensated psychiatric treatment provided by the taxpayer to veterans.

     (2) An unused credit resulting from the limitations of paragraph 1 of this subsection may be carried forward, if necessary, for use in the seven privilege periods following the privilege period for which the credit is allowed.

     (3) The order of priority of the application of the credit allowed under this section and any other credits allowed by law shall be as prescribed by the director.  The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 for a privilege period, together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162, shall not exceed 50% of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.

     (4) A taxpayer shall not be granted a credit pursuant to this section for the value of qualified uncompensated psychiatric treatment provided to veterans that is included in the calculation of a credit against the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., allowed pursuant to section 2 of P.L.    , c.   (C.     ) (pending before the Legislature as this bill).

     b.    As used in this section:

     “Psychiatrist” means as is defined by section 2 of P.L.1987, c.116 (C.30:4-27.2).

     “Qualified uncompensated psychiatric treatment” means the provision of medically necessary services by a psychiatrist wherein reimbursement is not received or sought, other than the credit provided pursuant to section 1 of P.L.    , c.   (C.     ) (pending before the Legislature as this bill).

     “Veteran” means a resident of this State who has been honorably discharged from the active military service of the United States.


     2.    a.  (1) In taxable years commencing after the effective date of P.L.    , c.   (C.     ) (pending before the Legislature as this bill), a taxpayer shall be allowed a credit against the tax otherwise due pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., in an amount equal to the value, not in excess of $10,000, of qualified uncompensated psychiatric treatment provided by the taxpayer to veterans.  The amount of the credit provided under this section shall not exceed $85 per hour of qualified uncompensated psychiatric treatment provided by the taxpayer to veterans.

     (2) A taxpayer shall not be granted a credit pursuant to this section for the value of qualified uncompensated psychiatric treatment provided to veterans that is included in the calculation of a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), allowed pursuant to section 1 of P.L.    , c.   (C.     ) (pending before the Legislature as this bill).

     b.    As used in this section:

     “Psychiatrist” means as is defined by section 2 of P.L.1987, c.116 (C.30:4-27.2).

     “Qualified uncompensated psychiatric treatment” means the provision of medically necessary services by a psychiatrist wherein reimbursement is not received or sought, other than the credit provided pursuant to section 2 of P.L.    , c.   (C.     ) (pending before the Legislature as this bill).

     “Veteran” means a resident of this State who has been honorably discharged from the active military service of the United States.

 

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill allows a corporation business tax and gross income tax credit for certain unreimbursed psychiatric treatment of veterans.  The bill enables a taxpayer under either tax to take a credit for the value of qualified uncompensated psychiatric treatment provided to veterans in an amount of up to $10,000.  Per hour of treatment provided the credit may not exceed $85.  To be deemed eligible for a credit, such services must be medically necessary, performed by a psychiatrist and undertaken without reimbursement.  The credits created by this bill under the corporation business tax and gross income tax are mutually exclusive such that no taxpayer may take a credit under both impositions for the provision of the same services.  The credits afforded under this bill will be available in the privilege periods and taxable years commencing after the effective date.