Provides gross income tax credit to active members of volunteer emergency service organizations for use of personal motor vehicle in performance of active duty.

A2261

ASSEMBLY, No. 2261

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Assemblywoman CAROL A. MURPHY

District 7 (Burlington)

Co-Sponsored by:

Assemblymen Moen, Rumpf, Myhre, Auth, Assemblywoman Flynn,
Assemblyman Scharfenberger, Assemblywoman Swain, Assemblymen Tully and Sauickie

SYNOPSIS

���� Provides gross income tax credit to active members of
volunteer emergency service organizations for use of personal motor vehicle in
performance of active duty.

CURRENT VERSION OF TEXT

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

��

An Act
providing a New Jersey gross income tax credit to
active members of volunteer emergency service organizations for the use of a
personal vehicle in the performance of active duty, supplementing chapter 4 of
Title 54A of the New Jersey Statutes.

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

���� 1.��� a.� As used in this
section:

���� �Active duty� by an active
member of a volunteer emergency services organization means direct
participation in the organization�s response to emergency calls or alarms,
extinguishing of fires, or other provision of emergency services for the
protection of life and property from harm.

���� �Active member� means a member
of a volunteer emergency services organization, who, during the entire taxable
year with respect to which a credit claimed under subsection b. of this
section, was a member in good standing with active member status of the organization
and received no remuneration, other than a clothing allowance or other monetary
reimbursement for clothing for its upkeep, or both, for serving with the
organization.� Benefits accrued or received under the �Emergency Services
Volunteer Length of Service Award Program Act,� P.L.1997, c.388 (C.40A:14-183
et seq.), shall not be deemed to be remuneration for the purposes of this
section.

���� �Ancillary duty� by an active
member of a volunteer emergency services organization means performance of any
duty, other than active duty, attendance at official meetings of the
organization, or participation in authorized drills, training classes or exercises
conducted by the organization, that may be required to maintained membership in
good standing in the organization, but shall not include fund-raising or social
activity.

���� �Qualifying service� during a
taxable year by an active member of a volunteer emergency services organization
means:

���� (1) for a volunteer who is not
responsible for duty hours, (a) recorded attendance and performance of active
duty at not less than 60 percent of the regular service alarms or other calls
to active duty to which the organization responds during the taxable year, (b)
recorded attendance at not less than 60 percent of the official meetings of the
organization, (c) attendance at and participation in 100 percent of all
authorized drills or other training classes or exercises, conducted or
sponsored by the organization during the taxable year, in which the
organization requires the active member to participate as a condition of the
member�s performance of active duty with the organization, and (d) performance
during the taxable year of not less than 60 percent of ancillary duty to or
with the organization; or

���� (2) for a volunteer who is
responsible for duty hours, performance of at least 400 duty hours during the
taxable year, of which not more than 50 percent shall be for drills and other
training classes or exercises.

���� �Volunteer emergency services
organization� means:

���� (1)� a fire company, part-paid
fire department, volunteer fire department, or fire district designated or
incorporated under the laws of this State for the purpose of protecting life
and property from fire, serving one or more counties or municipalities within
this State; and

���� (2)� an emergency first aid,
ambulance, or rescue squad or association, composed of volunteers and
incorporated or associated as a nonprofit corporation or association under the
laws of this State, which provides emergency first aid, ambulance, or rescue
services to one or more counties or municipalities within this State.

���� b.��� A taxpayer who, during
the taxable year, is at all times an active member of a volunteer emergency
services organization and completes qualifying service with the organization
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 each mile actually and
necessarily traveled by a taxpayer who utilizes their personal vehicle in the
performance of active duty.�

���� c.���� The credit shall be in
an amount determined by multiplying the standard mileage rate set by the
federal Internal Revenue Service, or its successor, to calculate deductible
costs of operating an automobile for business purposes for the taxable year in
which the credit is claimed by the number of miles actually and necessarily
traveled by the taxpayer in the performance of active duty in the taxable year
for which the credit is claimed.� The amount of the credit shall not exceed
$500 for a single taxpayer.� If married individuals filing a joint return under
this act shall each meet the requirements to claim the credit, they shall be
allowed a total credit against the tax in the amount of $1,000.

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

���� e.���� In the case of married
individuals filing jointly, each individual shall be permitted to claim the
credit pursuant to this section in the taxable year if that individual is
eligible for the credit.

���� f.���� If the credit allowed
pursuant to this section, together with any other payments, credits, deductions
and adjustments allowed by law, reduced a qualified taxpayer�s tax liability
otherwise due 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 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.

���� g.��� On or before January 15
of each year, each volunteer emergency services organization shall certify to
the Director of the Division of Taxation a list of the active members of the
organization during the taxable year ending on the preceding December 31, together
with any documentation of that service as the director may require.

���� h.��� The Director of the
Division of Taxation shall adopt, in accordance with the �Administrative
Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and
regulations concerning the certification by any volunteer emergency services
organization of the performance, by an active member of the organization, of
active duty and ancillary duty to or on behalf of the organization, attendance
at official meetings of the organization, and participation in authorized
drills, training classes and exercises of the organization, together with any
other appropriate rules and regulations, as may be necessary to effectuate the
purposes of this section.

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

STATEMENT

���� This bill establishes a
refundable gross income tax credit to provide reimbursement to active members
of volunteer fire departments and first aid squads for the use of their
personal vehicle in the performance of active duty.�

���� The amount of the credit is
determined by multiplying the business standard mileage rate set by the
Internal Revenue Service for transportation or travel expenses by the number of
miles the taxpayer actually and necessarily traveled by the taxpayer in the tax
year using their personal vehicle in the performance of active duty.� The
maximum amount of the credit would be $500.� If married individuals filing a
joint return both qualify, they would be allowed a joint credit of up to
$1,000.

���� To be eligible for the credit,
a taxpayer would, in the taxable year for which the credit was claimed, have
to:� (1) have been an unpaid member in good standing of the organization; and
(2) have completed �qualifying service� with the organization.

���� The bill defines �qualifying
service� as:

���� (a) for a volunteer who does
not have duty hours, (i) active participation in at least 60 percent of the
regular alarms or other calls to active duty to which the organization responds
during the taxable year, (ii) recorded attendance at not less than 60 percent
of the organization�s mandatory meetings during the year, (iii) participation
in all of the organization�s mandatory meetings during the year, and (iv)
performance during the year of not less than 60 percent of any other
miscellaneous duty required by the organization; or

���� (b) for a volunteer who does
have duty hours, performance of at least 400 duty hours during the year, of
which no more than 50 percent could be for drills or other training classes or
exercises.

���� The bill requires each
volunteer emergency services organization to certify to the Director of the
Division of Taxation in the Department of the Treasury, on or before January 15
of each year, a list of the active members of the organization during the prior
tax year.� The certification will assist the Division of Taxation in verifying
a taxpayer�s eligibility for a gross income tax credit under the bill.