Sponsored by:

Senator FRED H. MADDEN, JR.

District 4 (Camden and Gloucester)

SYNOPSIS

Allows corporation business tax credit for full cost of purchasing portable defibrillators.

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel

An Act providing a credit against the corporation business tax for certain taxpayer expenses for purchases of automated external defibrillators, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. A taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for the taxpayer's expense during the privilege period for the purchase of an automated external defibrillator made in compliance with provisions of P.L.1999, c.34 (C.2A:62A-23 et seq.).

b. The director shall determine the priority in which a taxpayer shall take credits allowed pursuant to this section and any other credits against the tax imposed pursuant to section 5 of P.L.1945, c.162. The taxpayer shall apply credits allowable pursuant to this section in the order of the credits' privilege periods. The amount of the credits applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, for a privilege period shall not, in combination with any other credits applied, exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162.

c. The amount of any credit otherwise allowable under this section that cannot be applied for the privilege period due to the limitations of subsection b. of this section may be carried over to the five privilege periods following the period for which the amount was allowed.

2. This act shall take effect immediately and apply with respect to privilege periods ending on or after July 1 next following enactment.

STATEMENT

This bill provides a credit against the corporation business tax for a taxpayer's expense of purchasing an automated external defibrillator made in compliance with provisions of P.L.1999, c.34 (C.2A:62A-23 et seq.). That 1999 law established State standards for the purchase, training and use of these life saving portable devices to encourage greater acquisition, deployment and use of automated external defibrillators by trained personnel throughout this State.

Recent medical studies have reported that many people who suffer cardiac arrest and would otherwise die can be saved if ordinary people are trained to use defibrillators to shock them back to life during the first few minutes following cardiac arrest. These studies reflect a larger national trend to train lay people to use portable defibrillators and make the devices available in large workplaces and public places like sports stadiums, transportation terminals, community centers, shopping malls and other private venues of public accommodation. Portable defibrillators weigh three to seven pounds and can cost from $1,000 to $4,000. Lay people can be taught to use them in three to six hours of training. New Jersey, New York, Nevada and at least a dozen other states have passed laws to exempt people from civil liability when they use a defibrillator to save someone's life.

This corporation business tax credit is for the full amount of the purchase cost of portable defibrillators. Under the 1999 New Jersey law, these purchases must be accompanied by documentation that the purchaser has appropriate training in the use, maintenance and operation of these devices. Thus, this bill will effectively provide State financial support for private sector purchases of these life saving devices and further encourage the deployment of portable defibrillators throughout the State.