Expands eligibility for gross income tax credit to family caregivers of certain armed service members with physical disabilities.

A1272

ASSEMBLY, No. 1272

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman MICHAEL INGANAMORT

District 24 (Morris, Sussex and Warren)

Co-Sponsored by:

Assemblywomen Dunn, Fantasia and Assemblyman Scharfenberger

SYNOPSIS

���� Expands eligibility for gross income tax credit to
family caregivers of certain armed service members with physical disabilities.

CURRENT VERSION OF TEXT

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

��

An Act
expanding eligibility for the gross income tax credit
allowed under the Wounded Warrior Caregivers Relief Act and amending P.L.2017,
c.67.

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

���� 1.��� Section 2 of P.L.2017,
c.67 (C.54A:4-15) is amended to read as follows:

���� 2.��� a.� A qualified family
caregiver shall be allowed a qualified veteran care credit against the tax
otherwise due for the taxable year under the "New Jersey Gross Income Tax
Act," N.J.S.54A:1-1 et seq., in an amount equal to 100 percent of the federal
veteran disability compensation of a qualified armed service member for which
the qualified family caregiver renders care or $675, whichever is less.

���� b.��� If two or more qualified
family caregivers qualify for the qualified veteran care credit for the same
qualified armed service member, the amount of the credit allowed shall be
allocated in proportion to each qualified family caregiver's share of total care
expenses provided for the taxable year.

���� c.���� If the qualified
veteran care credit allowed pursuant to this section, together with any other
payments, credits, deductions, and adjustments allowed by law, reduces a
qualified family caregiver's tax liability otherwise due for the taxable year
under N.J.S.54A:1-1 et seq. to zero, the amount of the credit remaining shall
be paid to the taxpayer as a refund of an overpayment of tax in accordance with
N.J.S.54A:9-7; provided however, that subsection (f) of that section,
concerning the allowance of interest, shall not apply.

���� d.��� A qualified family
caregiver who is not subject to tax in accordance with N.J.S.54A:2-4 for a
taxable year may apply for a qualified veteran care credit using an application
to be made available by the director. The due date for a qualified veteran care
credit application shall coincide with the due date for annual gross income tax
returns.

���� e.���� As used in this
section:

���� "Qualified armed service
member" means an individual who has a disability arising out of service in
the active military or naval service of the United States
[
in any war or
conflict on or after September 11, 2001
]
,
has been honorably discharged or released under conditions other than
dishonorable, meets the requirements for total disability ratings for
compensation based upon unemployability of the individual as determined by the
United States Department of Veterans Affairs, and has resided with the
qualified family caregiver in this State for not less than six months of the
taxable year.

���� "Qualified family
caregiver" means an individual resident of this State with gross income
for the taxable year not in excess of $100,000 if filing jointly, as a head of
household, or as a surviving spouse, or not in excess of $50,000 if filing separately
or unmarried, who provides care and support to a qualifying armed service
member to whom the caregiver is a relative.

���� "Relative" means an
individual related by consanguinity within the third degree by law or blood.

(cf: P.L.2017, c.67, s.2)

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

STATEMENT

���� This bill expands eligibility
for the gross income tax credit allowed under the Wounded Warrior Caregivers
Relief Act.

���� The Wounded Warrior Caregivers
Relief Act provides a refundable gross income tax credit to qualified family
caregivers of certain former armed service members with a service-connected
disability.� To qualify for the credit, current law requires a caregiver to be
related to the service member within the third degree or closer and to be an
individual resident of this State.� The caregiver�s gross income may not exceed
$100,000 as a joint filer or $50,000 as a single or separate filer.

���� Current law requires the
service member to be an individual who: (1) has a disability arising out of
service in the active military or naval service of the United States in any war
or conflict on or after September 11, 2001; (2) has been honorably discharged
or released under conditions other than dishonorable; (3) meets the
requirements for total disability ratings for compensation based upon the level
of employability of the individual as determined by the federal Department of
Veterans Affairs; and (4) has resided with the caregiver in this State for not
less than six months of the year.

���� Under the bill, a caregiver
would qualify for the credit if the service member�s disability arose out of
any service in the active military or naval service of the United States, even
if the disability did not arise in a war or conflict on or after September 11,
2001, provided that the service member meets the other requirements for the
credit under current law.