New Jersey S 2945: Prohibits municipal ordinance to create sanctuary city; Establishes State and local employee ethics violation upon noncompliance with federal immigration enforcement request.

Bill Text

S2945 

SENATE, No. 2945 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Allows tax credit for expenses incurred for medical 
insurance premiums and deductible payments for certain taxpayers under gross 
income tax.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act allowing gross income tax credits for certain 
expenses incurred for medical insurance premiums and deductible payments, and 
supplementing Title 54A of the New Jersey Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� As used in P.L.���� , 
c.��� (C.������� ) (pending before the Legislature as this bill):

���� �Insurance deductible medical 
expense� means the amount of covered charges under a health plan that an 
individual is required to pay for services before a health plan begins to pay 
on a covered charge.

���� �Health plan� means an 
individual or group health benefits plan that provides or pays the cost of 
hospital and medical expenses, dental or vision care, or prescription drugs, 
and is provided by or through an insurer, health maintenance organization, the Medicaid 
program, the Medicare program, a Medicare+Choice provider or Medicare 
supplemental insurer, an employer-sponsored group health benefits plan, 
government or church-sponsored health benefits plan or a multi-employer welfare 
arrangement.

���� �Medical insurance premium 
expense� means the consideration paid by an individual to an insurer for the 
issuance and delivery of any binder or policy of insurance for a health plan.

���� �Medical insurance cost� means 
the total of medical insurance premium expenses and insurance deductible 
medical expenses.

���� 2.��� a.� A resident taxpayer 
shall be allowed a credit against the tax otherwise due pursuant to the �New 
Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., for medical insurance 
costs incurred by the taxpayer during the taxable year, as follows:

���� (1)� for an individual filer 
or married individual filing separately with gross income not greater than 
$65,000 during the taxable year, the amount of the tax credit shall equal the 
difference between the medical insurance costs incurred during the taxable 
year, and 8.5 percent of the taxpayer�s gross income; and

���� (2)� for a married individual 
filing a joint return or individual filing as head of household with combined 
gross income not greater than $130,000, the amount of the credit shall equal 
the difference between the medical insurance costs incurred during the taxable 
year, and 8.5 percent of the taxpayers� combined gross income.

���� b.��� � A taxpayer shall not 
be allowed a tax credit under this section related to any expenses for which 
the taxpayer claims a deduction pursuant to N.J.S.54A:3-3 or N.J.S.54A:3-5.

���� c. �� ��The director shall 
prescribe the order of priority of the application of the credit allowed under this 
section and any other credits allowed by law against the tax imposed under the 
"New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq.� The amount 
of the credit applied under this section against the tax imposed pursuant to 
the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. for a 
taxable year, together with any other credits, deductions, payments, and 
adjustments allowed by law, shall not reduce the tax liability to an amount 
less than zero.

���� 3.��� No later than one year 
following the effective date of this act, the director, in coordination with 
the Commissioner of Health, shall advertise the availability of the tax credits 
allowed under this act for the purpose of encouraging residents to schedule and 
complete regular medical visits. 

���� 4.��� This act shall take 
effect immediately and apply to taxable years beginning on or after the January 
1 next following the date of enactment.

STATEMENT

���� 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