New Jersey
New Jersey

January 15, 2004
Assembly Bill 2417: Refundable Gross Income Tax Credit

Author: E. Scott Garrett


A.B. 2417 allows a refundable gross income tax credit for the education and training expenses of developmentally disabled children. The act would take effect immediately and apply to the taxable year in which it is enacted. The bill adds a supplement to Chapter 4 of NJS Title 54A. This new section allows for a credit against the tax otherwise due. The credit is for expenses paid or incurred by the taxpayer for a qualified child for whom the taxpayer is entitled a dependent exemption. The services and equipment that comprise the expenses are for the education and training of that child with respect to the developmental disability. The amount of the credit cannot exceed $3000 and will be reduced for an annual income of over $150,000. If the credit amount reduces the tax liability to zero, the amount of credit remaining will be refunded as an overpayment.

The balance of the bill amends the medical expense exemptions and deductions section, N.J.S.54A:3-3. It clarifies that any of the expenses that are claimed as a credit against the tax due cannot be also used for a medical deduction.

Last year's legislative session closed 1/12/04, so this bill is now dead.

HSLDA's Position:
We strongly support this bill.

 Other Resources

Bill Text

Bill History