ASSEMBLY, No. 1841

STATE OF NEW JERSEY

219th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION

Sponsored by:

Assemblywoman  BRITNEE N. TIMBERLAKE

District 34 (Essex and Passaic)

Assemblywoman  ANNETTE QUIJANO

District 20 (Union)

Assemblyman  GARY S. SCHAER

District 36 (Bergen and Passaic)

Co-Sponsored by:

Assemblyman Zwicker

SYNOPSIS

     Allows gross income tax deduction for amounts paid for lead or asbestos hazard abatement in taxpayer’s primary residence.

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

An Act allowing a gross income tax deduction for amounts paid for lead or asbestos hazard abatement in a taxpayer’s primary residence, supplementing 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 to deduct from gross income amounts paid in the taxable year for:

     lead-based paint hazard abatement in the taxpayer’s primary residence, if performed by a State-certified lead abatement contractor;

     asbestos hazard abatement in the taxpayer’s primary residence, if performed by a State-licensed asbestos abatement contractor;

     replacement of a water service line containing hazardous amounts of lead, provided that the line is owned by the taxpayer, the line is on the real property of the taxpayer’s primary residence, and the line’s replacement is necessary for abatement of the hazard in the taxpayer’s primary residence; and

     replacement of plumbing containing hazardous amounts of lead in the taxpayer’s primary residence.

     b.  The total deduction allowed for a taxpayer pursuant to this section shall not exceed $25,000 in a taxable year.

     c.  To be eligible for the deduction for amounts paid for lead-based paint hazard abatement, a taxpayer shall submit to the director a receipt of work done and amounts paid to a State-certified lead abatement contractor. To be eligible for the deduction for amounts paid for asbestos hazard abatement, a taxpayer shall submit to the director a receipt of work done and amounts paid to a State‑licensed asbestos abatement contractor.

     d.  The director shall promulgate standards by which taxpayers shall document proof of eligibility for the deduction.

     2.    This act shall take effect immediately.

STATEMENT

     This bill allows taxpayers to deduct up to a combined $25,000 from gross income in a year for the following expenses:

· lead-based paint hazard abatement in the taxpayer’s home, if performed by a certified lead abatement contractor;

· asbestos hazard abatement in the taxpayer’s home, if performed by a licensed asbestos abatement contractor;

· replacement of a water service line containing hazardous amounts of lead, if the line is owned by the taxpayer, the line is on the real property of the taxpayer’s home, and the line’s replacement is necessary for abatement of the hazard in the taxpayer’s home; and

· replacement of plumbing containing hazardous amounts of lead in the taxpayer’s home.

     The Director of the Division of Taxation is required to set the standards by which taxpayers are to prove that they qualify for the deduction. To be eligible for the deduction for amounts paid for lead-based paint hazard abatement or asbestos hazard abatement, a taxpayer must submit a receipt that work was done by a State certified or licensed abatement contractor.

     Lead and asbestos hazard abatement can cost families tens of thousands of dollars. This bill provides an incentive and financial relief to homeowners who incur expenses for lead and asbestos hazard abatement to make their families and communities safer.