Sponsored by:
Assemblyman GREGORY P. MCGUCKIN
District 10 (Monmouth and Ocean)
Co-Sponsored by:
Assemblyman Clifton
SYNOPSIS
Provides gross income tax deduction of up to $10,000 for certain motor fuel expenses.
CURRENT VERSION OF TEXT
As introduced.
An Act providing a gross income tax deduction for certain motor fuel 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. As used in this section, “motor fuel” means motor fuel as defined in section 2 of P.L.2010, c.22 (C.54:39-102).
b. A taxpayer shall be allowed a deduction, not to exceed $10,000, from the taxpayer’s gross income for the taxable year in the amount paid by the taxpayer during the taxable year for the purchase of motor fuel for the operation for personal use of a motor vehicle owned or leased by the taxpayer.
c. A deduction shall not be allowed under this section for any expense that is:
(1) reimbursed to the taxpayer by or for the taxpayer’s employer;
(2) deductible in determining net profits from business pursuant to subsection b. of N.J.S.54A:5-1, even if not so deducted;
(3) deductible in determining net gains or net income derived from or in the form of rents, royalties, patents, and copyrights pursuant to subsection d. of N.J.S.54A:5-1, even if not so deducted;
(4) deductible in determining distributive share of partnership income pursuant to subsection k. of N.J.S.54A:5-1, even if not so deducted;
(5) deductible in determining net pro rata share of S corporation income pursuant to subsection p. of N.J.S.54A:5-1, even if not so deducted; or
(6) deductible as a medical expense pursuant to N.J.S.54A:3-3, even if not so deducted, or paid or distributed out of a medical savings account excluded from gross income pursuant to section 5 of P.L.1997, c.414 (C.54A:6-27).
d. A taxpayer claiming the deduction allowed pursuant to this section shall maintain receipts or other documentation of the amounts paid for purchases of motor fuel, in a form and manner prescribed by the director.
2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill provides a gross income tax deduction for amounts paid by taxpayers for the purchase of motor fuel for the operation for personal use of any motor vehicle owned or leased by the taxpayer.
Under the bill, the deduction is capped at $10,000 per taxpayer for each taxable year. The deduction would not be allowed for motor fuel expenditures that are reimbursed by or for the taxpayer’s employer, or that are otherwise deductible in determining business income, rental and royalty income, partnership income, or S corporation income under the gross income tax. The deduction also would not be allowed for amounts that are deductible as medical expenses or paid or distributed out of a medical savings account.
The bill also requires taxpayers claiming the deduction to maintain receipts or other documentation of their motor fuel purchases in a form and manner prescribed by the Director of the Division of Taxation in the Department of the Treasury.