SENATE MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 3515

STATE OF NEW JERSEY

DATED:  JUNE 15, 2021

      The Senate Military and Veterans Affairs Committee reports favorably Senate Bill No. 3515.

      This bill amends the “Wounded Warrior Caregivers Relief Act,” P.L.2017, c.67 (C.54A:4-14 et seq.), to expand eligibility for the tax credit to include qualified family caregivers of former service members with service-connected disabilities arising out of service in the active military or naval service of the United States in any war or military conflict.

      Current law limits eligibility for the tax credit to qualified family caregivers of former service members with service-connected disabilities arising out of service in the active military or naval service of the United States in any war or military conflict on or after September 11, 2001.

      Current law provides qualified family caregivers of qualified armed service members with a refundable tax credit equal to 100 percent of the service member’s federal disability compensation or $675, whichever is less.  The credit is refundable and may be claimed for each taxable year a family caregiver qualifies.  The credit’s $675 limit applies per service member.

      Under current law, several prerequisites are required to be met in order for a family caregiver to qualify for the tax credit.  For example, a qualified family caregiver is required to be related to the service member within the third degree.  The service member is required to have resided with the family caregiver, in this State, for at least six months of the taxable year for which the credit is claimed.