Tax Credits, Medical Debt Relief Part Of Package Of New NJ Laws Now In Effect

Governor Phil Murphy took action outside of the budget Appropriations Act as well this week, signing a handful of other bills into law.

While the majority of new actions were signed on Monday, additional measures to provide residents who have medical debt more breaks were already set to go into effect on July 1 as part of a larger initiative that began last year.

Here is a breakdown of new laws that were signed:

Medical debt relief

New protections are now activated as part of the "Louisa Carman Medical Debt Relief Act," capping interest on medical debt at 3 percent annually and banning collectors from taking money out of low-income workers' wages.

Also beginning this month, all notices sent to patients about their medical debt and billing must include information on these new consumer protections.

Business innovation:

Certain provisions of “New Jersey Innovation Evergreen Act” modified; New tax credits available to NJ businesses; Exemption from New Jersey gross income of certain capital gains from sale or exchange of qualified small business stock

“New Jersey’s innovation industry drives our economy, creates good-paying jobs, and delivers revolutionary breakthroughs that impact the entire world,” said Assemblyman Chris Tully, Chair of the Assembly Science, Innovation and Technology Committee for New Jersey

A deeper look:

• "A5795/S4619, which modifies the New Jersey Innovation Evergreen Act to increase the maximum amount of the qualified investment. The bill would also allow for a “qualified investment” to be a venture firm’s second or later investment into a business if it is larger than the first investment or occurs at a higher valuation than the first investment. It also allows the Economic Development Authority to conduct additional tax credit auctions through the program.
• A2365/S3189, which increases the amount of the tax credit provided under the New Jersey Angel Investor Tax Credit Act. The bill allows the Economic Development Authority to utilize unused credits from the annual allocation from the Technology Business Tax Certificate Transfer Program to support the award of tax credits under the “New Jersey Angel Investor Tax Credit Act.” It also revises the definitions of “New Jersey based business” and “New Jersey emerging technology business” to lower the maximum number of employees that a business may employ to qualify for the tax credit.
• A4455/S4503, which allows exemption from New Jersey gross income of certain capital gains from sale or exchange of qualified small business stock (QSBS) after December 31, 2025."

Film and digital media:

Eligible applicants can receive a tax credit against the Corporation Business Tax and the Gross Income Tax for qualified expenses incurred during the production of certain film and digital media content in New Jersey.

Health insurance:

Fees consumers were required to pay when they appealed an insurance carrier’s decisions under the Independent Health Care Appeals Program were permanently eliminated.

The Independent Health Care Appeals Program is an external review program administered by the Department of Banking and Insurance to review adverse decisions made by carriers to pay a claim or to authorize a service or supply. The right to an external check of an appeal is required by the New Jersey Health Care Quality Act.

“The Murphy Administration continues to stand up for greater consumer protections in accessing health care,” added Justin Zimmerman, New Jersey Department of Banking and Insurance Commissioner. “Eliminating fees for independent appeals of health insurer decisions removes a barrier for consumers to challenge insurer decisions and promotes equity in the appeal process.”

MORE FROM PATCH: Murphy Signs Record-Busting Budget—With New Taxes And Tax Relief—Into Law

Other bills signed into law:

• S-4620/A-5879 (McKnight, Mukherji/McCann Stamato) - Amends Fiscal Year 2025 annual appropriations act to assign distribution of Old Courthouse asbestos remediation funding from Hudson County to Jersey City
• S-2788wGR/A-4569 (Cruz-Perez, Turner/Freiman, Katz, Simmons) - Appropriates $128.241 million from constitutionally dedicated CBT revenues to State Agriculture Development Committee for farmland preservation purposes
• A-5100/S-3991 (Rodriguez/Stack) - Re-appropriates unexpended balance of FY 2024 appropriation for Town of West New York to support recreation center; appropriates $3 million for Town of West New York – Recreation Center to restore lapsed FY 2024 funding
• A-5807/S-4655 (Pintor Marin/Sarlo) - Makes FY2025 supplemental appropriations of $142,615,000; adds various language provisions to FY2025 Appropriations Act
• A-5809/S-4656 (Murphy/Vitale) - “Healthcare Finance Enhancement Act”
• S-4654/A-5878 (Scutari, A.M. Bucco/Schnall, Inganamort) - Provides for publication of required legal notices on government Internet websites and through certain online news publications
• A-5801/S-4692 (Freiman/Sarlo) - Appropriates $247,128,000 from “New Jersey Debt Defeasance and Prevention Fund”; establishes process for authorizing future appropriations for debt defeasance and capital projects
• S-4632/A-5812 (Scutari, Ruiz/Schaer) - Establishes grant program in DOE for public schools to purchase and install point-of-use filtered bottle-filling stations and filtered faucets
• S-3618/A-4926 (Smith, Greenstein/Calabrese, Tully, Haider) - Directs DEP and DOT to establish “Wildlife Corridor Action Plan”
• S-3933/A-5075 (Ruiz, McKnight/Swain, Morales, Bagolie) - Establishes School Supervisor Mentorship Pilot Program; appropriates $500,000
• A-5077/S-4375 (Morales, Bagolie, Carter/Ruiz, Zwicker) - Extends statutory pause on collection of student growth objective data
• S-4122/A-5257 (Burzichelli/Stanley, Egan) - Revises apportionment of State lottery contributions
• S-3418wGR/A-4556 (Beach, Pennacchio/Lampitt, Greenwald, Katz) - Authorizes certain types of permanent structures, recently constructed or erected on preserved farmland, to be used, in certain cases, for purposes of holding special occasion events thereon
• S-1320wGR/A-4390 (Burzichelli, Pou/Stanley, Speight, Atkins) - Requires certain information be included in certain contracts with licensed public adjusters
• ACS for A-3361wGR/SS for S-2953 (Hutchison, Moen, McCann Stamato/Moriarty, Cryan) - Establishes limit on rent increase for certain dwelling sites for modular or industrialized buildings or manufactured homes
• A-4937/S-3486 (Atkins, Speight, Peterpaul/Gopal, Turner) - Concerns satellite cannabis dispensaries, Cannabis Regulatory Commission membership, and post-employment restrictions on State employees
• A-5199/S-4105 (Donlon, Ramirez, Drulis/Gopal, Mukherji) - Requires resident and fellow physicians employed by Rutgers, The State University of New Jersey, who are eligible for coverage in SHBP, to be eligible to enroll and receive health insurance on first day of employment