On Tax Day, Kean Calls for Action on Bill to Create Charitable Deduction

On Tax Day, Kean Calls for Action on Bill to Create Charitable Deduction

Measure Creates Tax Deduction for Contributions to NJ Charities During COVID-19 Pandemic

With tax filings for 2020 due today, Senate Republican Leader Tom Kean said many New Jersey taxpayers will once again notice an important tax deduction for charitable giving is offered on federal but not state returns.

“In a year when many New Jerseyans contributed to local charities that supported communities and families impacted by the pandemic, taxpayers were likely surprised to learn when preparing tax returns that New Jersey offers no income tax deduction for charitable giving,” said Kean (R-21). “As charitable nonprofits try to recover from the pandemic, the lack of a New Jersey tax deduction may impact their ability to raise funds and continue helping people. We have bipartisan legislation that’s stalled in the General Assembly that could address those needs and concerns.”

Kean sponsors S-3260 with Senator Troy Singleton (D-7). The bipartisan legislation creates a New Jersey Gross Income Tax deduction for charitable contributions that are made to certain New Jersey-based charitable organizations during the COVID-19 pandemic.

The bill provides that the amount of the deduction is limited to $20,000 for joint filers and heads of household and $10,000 for single filers, married taxpayers filing separately, or surviving spouses.

The legislation passed the New Jersey Senate with a unanimous 40-0 vote on May 14, 2020. It was then sent to the General Assembly, where no action has been taken in more than a year to advance the bill to Governor Murphy’s desk.

“We have watched as local nonprofits stepped up to feed their communities and provide every kind of support imaginable to New Jersey families impacted by this unprecedented public health and economic crisis,” added Kean. “Those dedicated organizations have not been immune from the financial hardships of this emergency. It’s imperative that we support their efforts by boosting donations in a way that is extremely cost efficient. I urge my colleagues in the General Assembly to move this important legislation forward.”

It has been estimated that every dollar in lost tax revenue to the State due to the deduction would result in approximately $30 of donations to charitable organizations that serve children, families, and seniors across New Jersey.

Kean has been pushing for more than a decade to create the tax deduction on a permanent basis.

(Visited 23 times, 1 visits today)

Comments are closed.

News From Around the Web

The Political Landscape