Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Provides gross income tax credit to essential employees working during COVID-19 pandemic.
CURRENT VERSION OF TEXT
An Act establishing a credit against the New Jersey gross income tax for essential employees working during the COVID-19 pandemic and supplementing Title 54A of the New Jersey Statues.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
“Essential employee” means an employee who, during a taxable year in which both the Public Health Emergency and the State of Emergency declared by the Governor in Executive Order No. 103 of 2020 and any extension thereof concerning the COVID-19 pandemic are ongoing:
(1) is a public safety worker;
(2) is involved in providing medical and other health care services, emergency transportation, social services, and other care services, including services provided in health care facilities, residential facilities, or homes; or
(3) performs functions which involve physical proximity to the members of the public and are essential to the public’s health, safety, and welfare, including, but not limited to, transportation services, hotel and other transient services, banking and financial services, and the production, preparation, storage, sale, and distribution of essential goods, such as food, beverages, medicine, fuel, and supplies for conducting essential business and work at home.
An employee who is an employee of the State who is offered the option of working at home, but has refused that option, shall not be regarded as an essential employee.
“Health care facility” means any non-federal institution, building or agency, or portion thereof, whether public or private, for profit or nonprofit, that is used, operated, or designed to provide health services, medical or dental treatment, nursing, rehabilitative or preventive care to any person. Health care facility includes, but is not limited to: an ambulatory surgical facility, home health agency, hospice, hospital, infirmary, intermediate care facility, dialysis center, long-term care facility, medical assistance facility, mental health center, paid and volunteer emergency medical services, outpatient facility, public health center, rehabilitation facility, residential treatment facility, skilled nursing facility, and adult day care center. Health care facility also includes, but is not limited to, the following related property when used for or in connection with the foregoing: a laboratory, research facility, pharmacy, laundry facility, health personnel training and lodging facility, patient, guest, and health personnel food service facility, and the portion of an office or office building used by persons engaged in health care professions or services.
“Public safety worker” includes a member, employee, or officer of a paid, partially-paid, or volunteer fire or police department, force, company, or district, including but not limited to, the State Police, a Community Emergency Response Team approved by the New Jersey Office of Emergency Management, a correctional facility, a basic or advanced medical technician of a first aid or rescue squad, or any other nurse, basic or advanced medical technician.
b. (1) An essential employee with gross income not in excess of $250,000 shall be allowed a credit in the amount of $500 against the tax otherwise due for the taxable year pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq.
(2) An essential employee with gross income in excess of $250,000 but not in excess of $400,000 shall be allowed a credit in the amount of $250 against the tax otherwise due for the taxable year pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq.
(3) An essential employee with gross income in excess of $400,000 shall not be allowed a credit pursuant to this section.
c. In the case of married individuals filing jointly, each individual shall be permitted to claim the credit allowed pursuant to this section in the taxable year if that individual is eligible for the credit.
d. The order of priority of the application of the credit allowed pursuant to this section, and any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq., shall be as prescribed by the director. The amount of the credit applied against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. shall not reduce a taxpayer’s New Jersey gross income tax liability to an amount less than zero.
e. Notwithstanding the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the director may adopt, immediately, upon filing with the Office of Administrative Law, regulations that the director deems necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), which regulations shall be effective for a period not to exceed 360 days from the date of the filing. The director may thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
2. This act shall take effect
immediately and apply to any taxable year during which both the Public Health
Emergency and the State of Emergency declared by the Governor in Executive
Order No. 103 of 2020 and any extension thereof concerning the COVID-19
pandemic are in effect for more than 183 days.
This bill provides a gross income tax credit to certain essential employees, including, but not limited to, health care workers, public safety workers, and transportation service providers, who have continued working during the COVID-19 pandemic.
An essential employee with gross income of less than $250,000 would be allowed a tax credit of $500. An essential employee with gross income greater than $250,000 but less than $400,000 would be allowed a tax credit of $250. Essential employees with gross income greater than $400,000 are not eligible to receive a tax credit. The credit may be claimed by both individuals in the case of married individuals filing a joint return.
The bill will take effect immediately and will apply to any taxable year in which both the State of Emergency and Public Health Emergency declared by the Governor in Executive Order No. 103 of 2020 and any extension thereof remains in effect for 183 days.