ASSEMBLY, No. 355

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblywoman QUIGLEY and Assemblyman IMPREVEDUTO

An Act allowing a gross income tax deduction for certain health care plan costs, supplementing chapter 3 of Title 54A of the New Jersey Statutes.

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

    1. Each taxpayer shall be allowed to deduct from gross income amounts paid during the taxable year for the coverage of the taxpayer, the taxpayer's spouse and dependents under a health care plan, including amounts paid as the premium or a portion of the premium on a health insurance policy and contributions to a trust or fund which provides health benefits directly or through insurance. A health care plan is a plan or program that provides payment for hospitalization, physician and surgical fees, and other medical and dental expenses.

    2. This act shall take effect January 1 next following enactment and apply to taxable years beginning on or after that date.

STATEMENT

    More and more people have been told that they will have to contribute and pay toward a health benefits plan. This bill allows the taxpayers of this State to deduct from gross income their cost or share of premiums and contributions made to a health care plan. This deduction is allowed for the costs of coverage for the taxpayer and the taxpayer's spouse and dependents.

Provides gross income tax deduction for health care plan costs.