Bill

Bill > A165


NJ A165

NJ A165
Requires DEP to evaluate extending sewer service in Lake Hopatcong region; allows gross income tax deduction for septic system maintenance under certain circumstances.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill would require the Department of Environmental Protection (DEP) to evaluate extending sewer service in areas surrounding Lake Hopatcong and its watershed. If the DEP determines installation of sewer service would not significantly improve water quality of the lake or is otherwise not feasible, this bill would provide a gross income tax deduction for one-half of the cost of the maintenance of a septic system performed at a taxpayer's primary residence located in an area that may impact Lake Hopatcong and its watershed. Specifically, this bill would require the DEP, within 90 days after the date the bill is enacted into law, to study the feasibility of extending sewer service in the area surrounding Lake Hopatcong and its watershed and make a determination as to whether the expansion of sewer service in the watershed would result in a significant improvement to the water quality of Lake Hopatcong. The bill directs the DEP to consult with the appropriate local governing bodies and the Lake Hopatcong Commission in conducting the study and making the determination required by the bill. If the DEP determines that installation of sewer service is not feasible or would not result in a significant improvement to the water quality of Lake Hopatcong, the DEP Commissioner would notify the Director of the Division of Taxation of the finding. A homeowner would then be eligible for a gross income tax deduction for one-half of the cost of performing maintenance of a septic system at the taxpayer's primary residence located within the watershed. The bill would require the DEP Commissioner to delineate the geographic area encompassing Lake Hopatcong and its watershed in which properties eligible for the tax dedication are located. To be eligible for the deduction, the bill would require a taxpayer to submit a receipt of work done and amounts paid for septic system maintenance. In addition, the bill would require the Director of the Division of Taxation, in consultation with the DEP Commissioner, to adopt standards by which taxpayers would demonstrate that they qualify for the tax deduction. In the early summer of 2019, the DEP detected cyanobacteria, a form of harmful algal bloom, in Lake Hopatcong and subsequently advised against making any contact with the water. Exposure to these harmful algal blooms can cause a range of health effects, including rashes, allergy-like reactions, flu-like symptoms, gastroenteritis, respiratory irritation, skin rashes, and eye irritation. A major contributor to harmful algal blooms is excessive nutrient loading in the water caused by runoff into Lake Hopatcong. Primary sources of nutrients include septic systems, lawn fertilizers, and animal wastes. In a press release issued in July 2019, the DEP urged property owners in the area to, among other things, have a wastewater professional perform a comprehensive evaluation of their septic system and fix any issues and have septic systems pumped out if this hasn't been done for three to five years.

AI Summary

This bill requires the Department of Environmental Protection (DEP) to study whether extending sewer service around Lake Hopatcong and its watershed would significantly improve the lake's water quality or is otherwise feasible. If the DEP determines that sewer service extension is not beneficial or practical, homeowners in eligible areas around Lake Hopatcong will be allowed a deduction on their gross income tax, meaning they can subtract half the cost of maintaining their septic system from their taxable income. To qualify for this tax deduction, homeowners must provide a receipt for the septic system maintenance, and the DEP Commissioner will define the specific geographic areas eligible for this deduction. The bill also mandates that the DEP and the Director of the Division of Taxation will establish standards for taxpayers to prove their eligibility for this deduction, which is intended to help address nutrient pollution, a major cause of harmful algal blooms like the cyanobacteria detected in Lake Hopatcong in 2019.

Committee Categories

Agriculture and Natural Resources

Sponsors (2)

Last Action

Introduced, Referred to Assembly Environment and Solid Waste Committee (on 01/13/2026)

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