SENATE, No. 655
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 5, 1996
By Senators CIESLA and BENNETT
An Act allowing a credit against the corporation business tax for certain donations for adult day care center support, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer shall be allowed a credit, to be computed as provided in this section, against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). The credit shall be an amount equal to the amount paid or incurred by the taxpayer as a donation to an unaffiliated third party for use in the construction, expansion or maintenance expense of an adult day care center by that third party, whether or not the donation qualifies as a charitable contribution for which the taxpayer may claim a deduction from federal taxable income pursuant to section 170(b)(2) of the federal Internal Revenue Code, 26 U.S.C. §170.
b. As used in this section, "adult day care center" means a community-based or employer-based group program designed to meet the needs of functionally or cognitively impaired adults through an individual plan of care structured to provide a variety of health, social and related support services including related transportation services, offered in a protective setting in this State during any part of a day but less than 24 hours in a day.
c. The tax imposed for a fiscal or calendar accounting year pursuant to section 5 of P.L.1945, c.162, shall first be reduced by the amount of any credit allowed pursuant to section 19 of P.L.1983, c.303 (C.52:27H-78), and then by any credit allowed pursuant to section 42 of P.L.1987, c.102 (C.54:10A-5.3), prior to applying any credits allowable pursuant to this section. Credits allowable pursuant to this section shall be applied in the order of the credits' tax years. The amount of the credits applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, for an accounting year shall not exceed 50% of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162. The amount of tax year credit otherwise allowable under this section which cannot be applied for the tax year due to the limitations of this subsection may be carried over, if necessary, to the ten accounting years following a credit's tax year.
d. When filing a tax return that includes a claim for a credit pursuant to this section, the taxpayer shall include a certified statement that the amount claimed was used exclusively for adult day care center purposes and shall identify the center.
2. This act shall take effect immediately.
STATEMENT
This bill provides a tax credit under the corporation business tax for capital construction, expansion and maintenance expense donations made to unaffiliated, third party sponsored adult day care centers. The adult day care center tax credit allowed in any year is limited to 50% of the corporation business tax liability otherwise due and may not reduce tax liability to less than the statutory minimum. The amount of any unused tax credit in a tax year resulting from these limitations may be carried over to any of the next ten tax years.
Adult day care may include both social day care and medical day care programs. Social day care generally involves few if any nursing and medical staff and minimum personal care and may be found sharing sites with senior and other community centers. Medical day care involves nurses and other health care professionals on site, personal care and rehabilitative services and lower staff-to-client ratios than social day care. Services directly provided through adult day care include social services, nursing, recreational activities, exercises, arts and crafts, music, reality therapy and dressing, grooming and toileting assistance. Adult day care centers may also either contract for or directly provide meals and transportation and may also provide or contract for physical, speech and occupational therapies and diet counseling. Adult day care centers are also likely to make referrals for physician, psychiatric, podiatric and dental services for their clients.
Adult day care provides key support to elderly and disabled adults as well as to their family caregivers. A growing segment of the State's working population is responsible for the dual burden of providing care for an elderly or disabled relative in a home setting and performing the full-time responsibilities of the workplace. Providing a corporation business tax credit for corporate donations for the capital construction, expansion and maintenance expenses of unaffiliated, third party sponsored adult day care centers will provide a financial incentive for corporations to increase the availability of adult day care services.
This bill is identical to Senate Bill No. 1240 of 1992.
Provides corporation business tax credit for certain donations for adult day care center support.