Allows gross income tax deduction for amounts paid for removal of lead, asbestos, sodium, chloride, and other contaminants from taxpayer's property.

S4125

SENATE, No. 4125

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 11, 2026

Sponsored by:

Senator� JOSEPH P. CRYAN

District 20 (Union)

SYNOPSIS

���� Allows gross income tax deduction for amounts paid
for removal of lead, asbestos, sodium, chloride, and other contaminants from
taxpayer�s property.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
allowing a gross income tax deduction for
amounts
paid for removal of lead
, asbestos, sodium,
chloride, and other

contaminants from
a taxpayer�s
property
, supplementing Title 54A of the New
Jersey Statutes.

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

���� 1.��� The
Legislature finds and declares that:

���� a.���� Lead
has been proven to be a neurotoxin that affects the brain and has been
connected to developmental delays or brain damage in children.

���� b.��� Lead
abatement is expensive and can be a costly burden on families.

���� c.���� Currently
there are lead abatement programs provided through the federal government,
state government, and local governments for taxpayers with below 80 percent
area median income, but the cost of lead abatement can be a burden on taxpayers
whose income exceeds 80 percent of area median income.

���� d.��� Taxpayers
frequently have to obtain a second mortgage or request burdensome loans to
address the cost of lead abatement.

���� e.���� The
State should provide incentives or methods to ease the cost burden of lead
abatement for taxpayers.

���� f.���� Sodium
and chloride from excessive road salting practices have contaminated private
well water in certain areas of the State. Homeowners in these areas have been
forced to purchase bottled water for their potable water needs.� In addition,
sodium and chloride contamination of their well water has in some case damaged
pipes and appliances in their homes.� Sodium and chloride can also each leach
lead and other metals from pipes that provide the well water to the homes.

���� 2.��� a.�
A taxpayer shall be allowed to deduct from gross income amounts paid in the
taxable year for:

���� (1)�� lead-based
paint hazard abatement in the taxpayer�s residential property, if performed by
a certified lead abatement contractor;

���� (2)�� asbestos
hazard abatement in the taxpayer�s residential property, if performed by a
licensed asbestos abatement contractor;

���� (3)�� replacement
of a water service line containing lead, provided that the line is owned by the
taxpayer, the line is on the real property of the taxpayer�s residential
property, and the line�s replacement is necessary for abatement of the hazard
in the taxpayer�s residential property;

���� (4)�
replacement of plumbing containing lead in the taxpayer�s primary residence;

���� (5)�
remediation of lead and other contaminants within soil on the taxpayer�s
residential property; and

���� (6)�
replacement of leaded windows on the taxpayer�s residential property.

���� b.��� A
taxpayer whose private well water is contaminated with levels of sodium or
chloride that exceed the U.S. Environmental Protection Agency secondary maximum
containment levels (smcl) shall be allowed to deduct from gross income in a
taxable year:

���� (1)�� the
cost of installing a water treatment system by a licensed contractor or
plumber;

���� (2)�� the
cost of replacing any pipes connected to the water treatment system; and

���� (3)�� the
cost of any upgrades needed for the property�s septic system or leach field to
handle the increased volume of wastewater from the water treatment system.

���� c.���� The
total deduction allowed for a taxpayer pursuant to this section shall not
exceed $45,000� in a taxable year. A taxpayer shall be eligible to claim the
deductions set forth in this section regardless of income.

���� d.��� To
be eligible for the deduction for amounts paid for lead-based paint hazard
abatement, a taxpayer shall submit to the director an affidavit from the
municipality where the residential property is located acknowledging the work
done and amounts paid to a certified lead abatement contractor. To be eligible
for the deduction for amounts paid for asbestos hazard abatement, a taxpayer
shall submit to the director an affidavit from the municipality where the
residential property is located acknowledging the work done and amounts paid to
a licensed asbestos abatement contractor.

���� e.���� The
director shall promulgate standards by which taxpayers shall document proof of
eligibility for the deduction.�

���� f.���� As
used in this section:

���� �Residential
property� means a taxpayer�s primary residence, owner occupied home, or rental
unit.

���� 3.��� During
the first taxable year following enactment, a taxpayer shall be allowed to
deduct any expenses incurred between January 1, 2018 and the first taxable year
following enactment of this P.L. , c. (C. )
(pending before the Legislature as this bill) for expenses described in section
2 of this bill, but the amount of the deduction shall not exceed the amount
otherwise allowed pursuant to section 2 of this P.L.��� , c.�� (C.������� )
(pending before the Legislature as this bill).

���� 4.��� This
act shall take effect immediately and shall expire on December 31, 2027.

STATEMENT

���� This
bill would allow taxpayers, regardless of income, to deduct up to a combined
$45,000 from gross income in a year for the following expenses:

���� (1)�� lead-based
paint hazard abatement in the taxpayer�s residential property if performed by a
certified lead abatement contractor;

���� (2)�� asbestos
hazard abatement in the taxpayer�s residential property if performed by a
licensed asbestos abatement contractor;

���� (3)�� replacement
of a water service line containing lead if the line is owned by the taxpayer,
the line is on the real property of the taxpayer�s residential property, and
the line�s replacement is necessary for abatement of the hazard in the
taxpayer�s residential property;

���� (4)�� replacement
of plumbing containing lead in the taxpayer�s residential property;

���� (5)�� remediation
of lead and other contaminants in the soil of a taxpayer�s residential
property;�

���� (6)�� replacement
of leaded windows on the taxpayer�s residential property;

���� (7)�� the
cost of installing a water treatment system by a licensed contractor or plumber
if the private well water servicing the taxpayer�s property is contaminated
with excess sodium or chloride levels;

���� (8)�� the
cost of replacing any pipes connected to the water treatment system if the
private well water servicing the taxpayer�s property is contaminated with
excess sodium or chloride levels; and

���� (9)�� the
cost of certain upgrades to a property�s septic system or leach field if the
private well water servicing the taxpayer�s property is contaminated with
excess sodium or chloride levels.

���� As
used in the bill, �residential property� means a taxpayer�s primary residence,
owner-occupied home, or rental unit.

���� The
Director of the Division of Taxation in the Department of the Treasury would be
required to set the standards by which taxpayers are to demonstrate that they
qualify for the deduction.� To be eligible for the deduction for costs related
to lead-based paint hazard abatement or asbestos hazard abatement, the taxpayer
would be required to submit an affidavit from the municipality in which the
residential property is located to the director acknowledging that the work was
done and the amount paid by the taxpayer to the licensed contractor.

���� During
the first taxable year following the bill�s enactment, a taxpayer would be
allowed to deduct any covered expenses incurred between January 1, 2018 and
that year.� The provisions of the bill would expire on December 31, 2027.