Bill > A331

This bill allows New Jersey taxpayers to deduct the fair market value of a "qualified vehicle" they donate to a State or local law enforcement agency from their gross income for the tax year the donation is made. A "qualified vehicle" is defined as a motor vehicle, boat, or airplane not held primarily for sale by a dealer. To claim a deduction exceeding $500, taxpayers must provide an independent appraisal of the vehicle's fair market value. The law also requires law enforcement agencies to provide written acknowledgment of the donation, including details about the vehicle and its appraised value if over $500. The deduction cannot reduce a taxpayer's taxable income below zero, and law enforcement agencies are not obligated to accept any donated vehicle. This provision applies to tax years beginning on or after January 1st following the bill's enactment.