New Jersey Assembly Bill A4773

New Jersey 2026-2027 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26

Caption

Allows gross income tax deduction for charitable contributions to certain New Jersey-based charitable organizations during public health emergency.

Summary

This bill creates a New Jersey gross income tax deduction for charitable contributions made during a public health emergency to certain qualifying New Jersey-based charitable organizations. The deduction applies only to donations made during the bill’s defined “exclusion period,” which includes the duration of a declared public health emergency and extends for 30 days afterward. The bill is written to cover both the 2020 public health emergency declared under Executive Order No. 103 and any future public health emergencies declared under the Emergency Health Powers Act. The deduction is capped at $10,000 for married taxpayers filing jointly and heads of household, and at $5,000 for married individuals filing separately, single filers, and surviving spouses. To qualify, the recipient organization must be registered under New Jersey’s Charitable Registration and Investigation Act, or exempt from registration, and must maintain an office or employ people in New Jersey while also providing services in the state. The bill takes effect immediately and applies retroactively to charitable contributions made on or after January 1, 2021.

Impact

If enacted, the bill would amend New Jersey gross income tax law to provide a new deduction tied to charitable giving during public health emergencies. It would benefit taxpayers who donate to eligible in-state charities and could reduce state income tax revenue to the extent taxpayers claim the deduction. It would also favor New Jersey-based charitable organizations by incentivizing donations to groups that are registered or exempt under state law and that operate in New Jersey.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. Based on the bill’s structure, the measure appears intended to encourage charitable giving and support local nonprofit organizations during emergencies, which suggests a generally pro-charity and pro-community policy rationale. The absence of recorded action also means the bill’s political reception cannot be assessed from the supplied record.

Contention

The main potential points of contention are the tax expenditure and the bill’s narrow eligibility rules. Critics could question whether a gross income tax deduction is the best way to support emergency relief, whether the revenue loss is justified, and whether the retroactive application to contributions made on or after January 1, 2021 is appropriate. Others may focus on the limitation to New Jersey-based organizations, which benefits in-state charities but excludes out-of-state or national organizations that may also provide relief.