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A4871
ASSEMBLY, No. 4871
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 4, 2026
Sponsored by:
Assemblywoman� AURA K. DUNN
District 25 (Morris and Passaic)
SYNOPSIS
���� Allows gross income tax deduction for charitable
contributions made to nonprofit entities supported by State funds or subsidies.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
allowing a gross income tax deduction for charitable
contributions made to certain nonprofit entities and supplementing chapter 3 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.� A taxpayer shall be
allowed to deduct from gross income the amount of charitable contributions made
during the taxable year to a nonprofit entity that is a recipient of State
funds or an economic development subsidy in that year.� The deduction allowed
pursuant to this section shall not exceed $10,000 for a married taxpayer filing
a joint return or an individual filing as head of household, and $5,000 for a
married individual filing a separate return, unmarried individuals other than
individuals filing as head of household, or a surviving spouse.
���� b.��� As used in this section:
����
�
Economic
development subsidy
�
means a provision
of financial assistance to a business entity by or from a State public body
with a value of greater than $500 for the purpose of stimulating economic
development in New Jersey, including, but not limited to, any bond, grants,
loan, loan guarantee, matching fund, tax credit, or other type of tax
incentive.�
�
Economic development
subsidy
�
shall not mean any contract
under which a State public body purchases or otherwise procures goods,
services, or construction on an unsubsidized basis, including any contract
solely construction or renovation owned by a State public body.
����
�
Nonprofit
entity
�
means a corporation,
association, or organization, which is not operated for pecuniary profit of any
private shareholders or individual, and which is not a component of the
federal, State, or local governments.
���� 2.��� This act shall take
effect immediately and apply to charitable contributions made in taxable years
beginning on or after the January 1 next following the date of enactment.
STATEMENT
���� This bill allows a New Jersey
gross income tax deduction to taxpayers for charitable contributions that are
made to certain nonprofit entities.
���� New Jersey gross income
taxpayers would be allowed to deduct from gross income the amount of charitable
contributions that are made during the taxable year to a nonprofit entity that
is the recipient of State funds or an economic development subsidy in that tax
year.� The bill provides that the amount of the deduction may not exceed
$10,000 for married taxpayers filing a joint return and individuals filing as
heads of household, and $5,000 for single filers, married taxpayers filing
separately, and surviving spouses.
���� The bill defines
�
economic development subsidy
�
as a provision of financial assistance to a
business entity by or from a State public body with a value of greater than
$500 for the purpose of stimulating economic development in New Jersey,
including, but not limited to, any bond, grants, loan, loan guarantee, matching
fund, tax credit, or other type of tax incentive.� Under the bill,
�
economic development subsidy
�
would not mean any contract under which a
State public body purchases or otherwise procures goods, services, or
construction on an unsubsidized basis, including any contract solely
construction or renovation owned by a State public body.
���� The bill defines
�
nonprofit entity
�
as a corporation, association, or organization, which is not
operated for pecuniary profit of any private shareholders or individual, and
which is not a component of the federal, State, or local governments.