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Bill

S 2945

Allows tax credit for expenses incurred for medical insurance premiums and deductible payments for certain taxpayers under gross income tax.

2026-2027 Regular Session Introduced by Raj Mukherji

New Jersey bill creates state income tax credit for medical insurance premiums and deductible payments to reduce out-of-pocket healthcare costs for qualifying taxpayers.

Introduced in the Senate, Referred to Senate Commerce Committee
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Bill Summary · S 2945

Legislative bill overview

S 2945 creates a state income tax credit for New Jersey taxpayers who pay medical insurance premiums and deductible expenses out of pocket. The credit would apply to "certain taxpayers," though the bill text doesn't specify income thresholds or eligibility limits. This is a tax expenditure that reduces state revenue to assist residents with healthcare costs.

Why is this important

Healthcare costs are a major burden for middle and lower-income households, and out-of-pocket expenses remain one of the largest reasons people delay or skip medical care. A tax credit makes healthcare more affordable while also providing modest tax relief, though the actual impact depends heavily on the credit's structure and who qualifies.

Potential points of contention

  • Revenue impact unclear: Without specified income caps, eligibility limits, or credit amounts, the fiscal cost to the state is unknown—this could range from minimal to substantial depending on final language
  • Targeting effectiveness: The phrase "certain taxpayers" is vague; critics may argue the credit should target low-income residents specifically, while others may want broader access
  • Tax credit design: Questions remain whether this covers all insurance types, what percentage of costs qualifies, and whether it coordinates with federal tax credits or existing state programs to avoid double benefits

Compiled from official sources — confirm details with the bill’s official record.

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