Bill > S4947

Introduced Session

This bill provides a gross income tax credit to qualified caregivers who pay or incur qualified care and support expenses for the care and support of a qualifying relative or individual with disabilities. A qualified caregiver would be allowed to claim a gross income tax credit in an amount not to exceed $2,500 in each taxable year for qualified care and support expenses paid or incurred by the qualified caregiver during the taxable year for the care and support of a qualifying relative or individual with disabilities. To claim the tax credit, the qualified caregiver would be required to provide documentation to substantiate that the qualified relative or individual with disabilities co-resides with the qualified caregiver, or that the qualified caregiver provides at least 120 hours of care annually to the qualified relative or individual with disabilities. If multiple caregivers provide care for the same individual, the total credit cannot exceed $2,500 for all caregivers. The credit may be claimed in addition to the dependent deduction that may be received by the qualified caregiver for claiming the qualifying relative or individual with disabilities as a dependent on the qualified caregiver's gross income tax return. The bill also provides that the tax credit would be refundable, meaning that if the credit reduces the qualified caregiver's tax liability to an amount less than zero, the remainder of the credit would be refunded to the caregiver as an overpayment of tax. The bill further provides that a qualified caregiver is eligible to receive the refundable credit, even if the caregiver has gross income below the statutory minimum subject to tax. The bill defines a "qualifying relative" as an individual who is a relative of a qualifying caregiver and who is: (1) 65 years of age or older; or (2) 50 years of age or older, qualifies for Social Security Disability Insurance, and has gross income for the taxable year not in excess of the New Jersey Elder Economic Security Standard Index. A "relative" includes individuals related by blood, adoption, marriage, civil union, or domestic partnership, including parents, grandparents, children, sibling, aunts, uncles, nieces, nephews, and step-relatives, as well as individuals who have resided with the caregiver for at least 12 consecutive months. The bill also defines "disability," with respect to an individual, as any medically-documented physical or mental impairment as defined in the federal "Americans with Disabilities Act." The bill defines "qualified care and support expenses" as the expenses paid or incurred during the taxable year for the purchase, lease, or rental of tangible personal property and services that are necessary to allow the qualifying relative or individual with disabilities to be maintained at the qualified caregiver, qualifying relative, or individual with disabilities' permanent place of abode in this State, including home health services, adult day care, respite care, medical equipment, home modifications, assistive devices, and transportation for medical care, but does not include expenses that are reimbursed by insurance or by a program administered by the State or federal government.

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Kristin Corrado (R)*,  Raj Mukherji (D)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 12/08/2025)

Official Document