Assemblyman ROBERT AUTH
District 39 (Bergen and Passaic)
Assemblyman NICHOLAS CHIARAVALLOTI
District 31 (Hudson)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblymen Rooney, C.A.Brown, Dancer, Assemblywoman Phoebus, Assemblymen Rible, DiMaio, Bramnick, Howarth, Space, Clifton, Andrzejczak, Land, Karabinchak, Singleton, Assemblywomen Jimenez, Downey, Assemblymen Eustace, Holley, Coughlin, Danielsen, Assemblywoman Mosquera and Assemblyman Houghtaling
Provides gross income tax credits for certain taxpayers who donate organs.
CURRENT VERSION OF TEXT
An Act providing credits against the gross income tax for certain organ donations, 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. 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., in an amount equal to $1,000 per taxable year if the taxpayer donates one or more of the taxpayer’s human organs, as defined by this section, to another human being for transplantation or therapy. For purposes of this section, “human organ” means bone marrow, part of a liver, or all or part of a lung or a kidney.
b. A credit allowed under this section shall be claimed for the taxable year in which the organ transplantation occurs. (This credit may be claimed only once per taxable year.)
c. If the amount of credit allowed pursuant to subsection a. of this section for a taxable year, together with any other payments or credits against the tax, reduces the 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; provided, however, that subsection (f) of that section, concerning the allowance of interest, shall not apply.
d. The director shall promulgate procedures and forms by which a taxpayer may certify that the taxpayer has qualified for the credit under this section.
2. a. Any decedent who, at the time of death, was a resident taxpayer or nonresident taxpayer, was a registered organ donor as defined by this section, and donated all or any organs or tissues to another human being for the purpose of human organ transplantation, 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., in an amount equal to $1,000 for the taxable year in which the donation is made.
b. For purposes of this section, “registered organ donor” means an individual who, at the time of death, was issued a current and validly executed driver’s license or non-driver identification card with an organ donor designation by the New Jersey Motor Vehicle Commission, was issued a current and validly executed identification card with an organ donor designation by a county of this State, or was a current and validly registered organ donor with the Donate Life New Jersey registry.
c. A credit allowed under this section shall be claimed for the taxable year in which the organ or tissue donation is made, provided that if a decedent’s organ or tissue donation is made over the course of more than one taxable year, the credit shall only be claimed for the earlier of the taxable years.
d. If the amount of credit allowed pursuant to subsection a. of this section for a taxable year, together with any other payments or credits against the tax, reduces the tax liability otherwise due for the taxable year to zero, any amount of credit remaining shall be paid to the estate of the decedent as a refund of an overpayment of tax pursuant to N.J.S.54A:9-7; provided, however, that subsection (f) of that section, concerning the allowance of interest, shall not apply.
e. To claim a credit under this section, the personal representative of a decedent’s estate shall obtain documentation from an agency of the State or its political subdivisions to attest that the decedent was a registered organ donor, and shall also obtain documentation from a hospital, organ procurement organization, or a licensed health care provider to attest that the decedent’s organs, tissues, or both, were donated to a human being for purposes of transplantation or therapy. Upon obtaining such documentation, the personal representative shall include such documentation when filing a return that includes a claim for a credit allowed in accordance with this section.
3. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2017.
This bill seeks to encourage greater participation in State-authorized organ donation programs. Currently, approximately 5,000 New Jersey residents are waiting for an organ or tissue transplant. Meanwhile, one single donor can save up to eight lives and improve the quality of life for up to 50 individuals. Yet only 34 percent of New Jersey adults are presently registered as organ donors, which is the sixth lowest participation rate in the country.
This bill creates a $1,000 gross income tax credit for individuals who have registered as an organ donor with the Motor Vehicle Commission, with a county of this State, or with the State’s Donate Life New Jersey Registry, and who, upon death, donate organs for human transplant. This credit is refundable, with any balance then given as a credit to the estate. The executor or executrix of the decedent’s estate would be required to obtain documentation to confirm that the donor was a registered organ donor and that the donor’s organs were harvested to be transplanted into another human being.
This $1,000 credit may also be claimed by a living donor who donates all or part of his or her organs for human organ transplantation.