Provides gross income tax credit for certain household pet expenses.

A4995

ASSEMBLY, No. 4995

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

SYNOPSIS

���� Provides gross income tax credit for certain
household pet expenses.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
providing a gross income tax credit for certain
household pet expenses 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. a.� A taxpayer shall be
allowed a 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
the qualified everyday pet expenses incurred by the taxpayer during the taxable
year for a household pet, up to $300 per taxable year, and for the qualified
veterinary expenses incurred by the taxpayer for a household pet, up to $600 per
taxable year. �The total amount of the credit allowed by this section shall not
exceed $900 per taxpayer per taxable year.

���� b.� When filing a return that
includes a claim for the credit allowed pursuant to this section, a taxpayer
shall submit documentation demonstrating that the taxpayer is the owner of a household
pet and copies of receipts demonstrating that the taxpayer incurred qualified
everyday pet expenses and qualified medical or veterinary expenses for the
household pet during the taxable year.

���� c.� The order of priority of
the application of the credit allowed pursuant to this section, and any other
credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq.,
shall be as prescribed by the director.� The amount of the credit, together
with any other credits allowed by law, shall not reduce the taxpayer�s
liability otherwise due for the taxable year under N.J.S.54A:1-1 et seq. to an
amount less than zero.

���� 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 tax credit using an application to be made available by the director.�
The due date for a tax credit application shall coincide with the due date for
annual gross income tax returns.

���� e.� The director shall adopt
rules and regulations pursuant to the �Administrative Procedure Act,� P.L.1968,
c.410 (C.52:14B-1 et seq.) as the director may deem necessary to effectuate the
provisions of this section.�

���� f.� As used in this section:

���� �Household pet� means a dog or
cat kept for the primary purpose of companionship and normally maintained in or
near the residence of the �taxpayer, provided that keeping such animal is not
in violation of a federal, State, or local law.� The term �household pet� shall
not include:

���� (1) a dog or cat confined to
the premises of any public or private hospital devoted solely to the treatment
of sick animals;

���� (2) a dog or cat confined for
the purposes of educational, research, or scientific purposes to the premises
of an educational or research institution, including, but not limited to, an
institution of higher education, school district, or nonpublic school;

���� (3) a dog or cat confined to
the premises of a person or business engaged in breeding or raising dogs or
cats for profit and licensed as a Class A dealer under the federal �Animal
Welfare Act,� 7 U.S.C. s.2131 et seq; or

���� (4) a dog owned or used by a
law enforcement agency to assist in investigations or search and rescue
missions.

���� �Qualified everyday pet
expense� means an expense incurred for items that are essential for the care of
a household pet, including, but not limited to, food, crates, leashes, litter
boxes, litter, harnesses, collars, grooming supplies, and toys specifically
designed for animal use.

���� �Qualified veterinary expense�
means an expense incurred for the services of a licensed veterinarian for the purpose
of maintaining and supporting the overall health of the household pet, including,
but not limited to, annual exams, medications, emergency care, and diagnostic testing.

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

STATEMENT

���� This bill provides a gross
income tax credit for certain household pet expenses.

���� Under the bill, a taxpayer would
be allowed a gross income tax credit in an amount equal to the qualified
everyday pet expenses incurred by the taxpayer during the taxable year for
household pets, up to $300 per taxable year, and for the qualified medical or
veterinary expenses incurred for household pets, up to $600 per taxable year. �The
total amount of a credit allowed under the bill would not exceed $900 per
taxpayer per taxable year. �In order to claim the credit, a taxpayer would be
required to include with their tax return documentation demonstrating that the
taxpayer owns a household pet and copies of receipts demonstrating that the
taxpayer incurred qualified everyday pet expenses and qualified medical or
veterinary expenses for the household pet during the taxable year. �

���� The term �household pet� is
defined under the bill as a dog or cat kept for the primary purpose of
companionship and is normally maintained in or near the residence of the
taxpayer.� A household pet would not include:� (1) a dog or cat confined to the
premises of any public or private veterinary hospital; a dog or cat confined
for educational, research, or scientific purposes to the premises of certain educational
or research institutions; a dog or cat confined to the premises of any person
or business engaged in breeding or raising dogs or cats for profit; and any dog
owned or used by a law enforcement agency to assist in investigations or search
and rescue missions.� The term �qualified everyday pet expense� is defined as expenses
incurred for items purchased that are essential for the care of a household
pet, including, but not limited to, food, crates, leashes, litter boxes,
litter, harnesses, collars, grooming supplies, and toys designed for animal use.�
The term �qualified medical or veterinary expenses� is defined as expense
incurred for the services of a licensed veterinarian for the purpose of
maintaining and supporting the overall health of the household pet, including,
but not limited to, annual exams, medications, emergency care, and diagnostic
testing.