Bill > S2945

Introduced Session

This bill would allow income-eligible resident taxpayers to claim a gross income tax credit for expenses incurred for medical insurance premiums and insurance deductible medical expense payments. Specifically, the bill provides that an individual filer or married individual filing separately would be allowed to claim the credit, provided that the taxpayer has gross income not greater than $65,000 during the taxable year. The bill also provides that a married individual filing a joint return or an individual filing as head of household may claim the credit, provided that the taxpayer's combined gross income is not greater than $130,000 during the taxable year. Under the bill, the amount of the tax credit would equal the difference between: (1) the total of insurance deductible medical expenses and medical insurance premium expenses incurred by the taxpayer during the taxable year, minus (2) 8.5 percent of the taxpayer's gross income for the taxable year. Under current law, taxpayer are allowed to claim gross income tax deductions for certain medical expenses, including a deduction for certain medical expenses paid in excess of two percent of the taxpayer's gross income. Self-employed individuals may also claim a deduction for amounts paid for insurance constituting medical care. This bill prohibits a taxpayer from claiming the tax credit authorized in this bill related to any expense for which one of these deductions is claimed. The bill also requires the Director of the Division of Taxation in the Department of the Treasury to coordinate with the Commissioner of Health to advertise the availability of the tax credits allowed under this bill.

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Raj Mukherji (D)*, 

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)

Official Document