ASSEMBLY, No. 851

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblymen COTTRELL and MALONE

 

 

An Act supplementing the Corporation Business Tax Act (1945), P.L.1945, c.162.

 

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

 

    1. A taxpayer shall be allowed a credit against the tax liability imposed by section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to 50% of the net costs expended by the taxpayer during the taxpayer fiscal or calendar accounting year for the purchase by the taxpayer of a height-adjustable patient examination table, which is accessible to handicapped patients, or equipment to modify a conventional patient examination table for that purpose, provided that:

    a. The taxpayer is a health care provider licensed pursuant to Title 45 of the Revised Statutes;

    b. The taxpayer is an "eligible small business" as defined in section 44 of the federal Internal Revenue Code (26 U.S.C.§44);

    c. The table or equipment purchased is used or intended for use in the health care provider's professional office; and

    d. The purchase is made for the purpose of complying with requirements established under Title III of the federal "Americans with Disabilities Act of 1990," Pub.L.101-336 (42 U.S.C.§12101 et seq.).

 

    2. The credit allowed under this act for any taxpayer fiscal or calendar accounting year shall not exceed the amount due that year pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5).

 

    3. This act shall take effect immediately but shall be applicable only to the taxpayer fiscal or calendar accounting years beginning on and after July 1, 1994.

 

 

STATEMENT

 

    This bill provides a 50% tax credit against the New Jersey Corporation Business Tax for physicians and other health care providers who purchase height-adjustable patient examination tables, or adaptable equipment for conventional patient examination tables, which are accessible to handicapped patients, when the purchase is made for the purpose of complying with requirements established under Title III of the federal "Americans with Disabilities Act of 1990," (ADA) Pub.L.101-336.

    To be eligible for the tax credit provided under this bill, a health care provider must have had $1 million or less in gross receipts for the preceding tax year or 30 or fewer full-time employees during the preceding tax year.

    This tax credit parallels the federal disability access tax credit available under section 44 of the federal Internal Revenue Code (26 U.S.C.§44), which was established pursuant to the "Omnibus Budget Reconciliation of 1990," Pub.L.101-508. This tax credit benefits a health care provider who purchases handicapped-accessible equipment in order to comply with the requirements of the ADA and is available to "eligible small businesses" in the amount of 50% of "eligible access expenditures" for the taxable year that exceed $250 but do not exceed $10,250. To be eligible, a business must have had $1 million or less in gross receipts for the preceding tax year or 30 or fewer full-time employees during the preceding tax year, and the expenditure must be for the purpose of enabling the business to comply with applicable ADA requirements, which includes the acquisition or modification of equipment or devices for handicapped persons.

 

 

 

Permits a Corporation Business Tax credit for health care providers who purchase handicapped-accessible patient examination tables to comply with requirements of federal law.