2019 New Jersey Revised Statutes
Title 54A - New Jersey Gross Income Tax Act
Section 54A:11-4 - Rules for determination of State shared responsibility.

54A:11-4 Rules for determination of State shared responsibility.

4. The rules for determining the State shared responsibility tax under section 3 of this act shall reflect the following changes relative to the rules for determining the federal shared responsibility payment under 26 U.S.C. s.5000A:

a. The amount of the tax imposed by this act shall be determined, if applicable, using the State average premium for bronze-level plans rather than the national average premium for bronze-level plans;

b. Instead of the United States Secretary of Health and Human Services, in coordination with the United States Secretary of the Treasury, the Commissioner of Banking and Insurance, in coordination with the State Treasurer, shall have the authority to recognize additional health benefits coverage as "minimum essential coverage";

c. For purposes of the exemption for individuals who cannot afford coverage:

(1) the required contribution is as follows:

(a) for an individual eligible for minimum essential coverage under both an eligible employer-sponsored plan and a qualified health plan the lesser of the amounts described in 26 U.S.C. s.5000A(e)(1)(B)(i) and 26 U.S.C. s.5000A(e)(1)(B)(ii);

(b) for an individual only eligible for minimum essential coverage under a qualified health plan the amount described in 26 U.S.C. s.5000A(e)(1)(B)(ii); (2) the income threshold for coverage to be considered unaffordable shall be determined by the State Treasurer in a manner consistent with 26 U.S.C. s.5000A (e)(1);

d. No tax shall be imposed under this act with respect to any applicable individual for any month during a calendar year if the taxpayer's taxable income for the taxable year is below the minimum taxable income threshold established in N.J.S.54A:2-4 and N.J.S.54A:8-3.1;

e. No tax shall be imposed by this act with respect to any applicable individual for any month during which the individual is a nonresident taxpayer;

f. Determinations as to hardship exemptions shall be made by the State Treasurer under this act rather than by the U.S. Secretary of Health and Human Services under 42 U.S.C. s.18031(d)(4)(H);

g. If a taxpayer is subject to both the tax imposed by this act and the federal penalty under 26 U.S.C. s.5000A for a taxable year, the taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in the amount of the taxpayer's federal penalty payment, but not to exceed the amount of the taxpayer's State tax imposed by this act in the taxable year.

The order of priority of the application of the tax credit allowed pursuant to this subsection and any other tax credits allowed by law shall be as prescribed by the Director of the Division of Taxation. The amount of the tax credit applied under this subsection against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year, when taken together with any other payments, credits, deductions, and adjustments allowed by law, shall not reduce the tax liability of the taxpayer to an amount less than zero; and

h. Health coverage provided under a multiple employer welfare arrangement, as defined in subsection (40) of 29 U.S.C. s.1002, shall not qualify as minimum essential coverage unless the plan complies with the requirements of one or more of the following New Jersey statutes, as applicable to a carrier and health benefits plans offered in the relevant individual, small employer, or large employer markets:

(1) P.L.1938, c.366 (C.17:48-1 et seq.);

(2) P.L.1940, c.74 (C.17:48A-1 et seq.);

(3) P.L.1985, c.236 (C.17:48E-1 et seq.);

(4) N.J.S.17B:26-1 et seq.;

(5) N.J.S.17B:27-26 et seq.;

(6) P.L.1973, c.337 (C.26:2J-1 et seq.);

(7) P.L.1992, c.161 (C.17B:27A-2 et seq.);

(8) P.L.2001, c.352 (17B:27C-1 et seq.);

(9) P.L.1997, c.1972 (C.26:2S-1 et seq.); or

(10) P.L.1992, c.162 (C.17B:27A-17 et seq.).

i. For any taxable year in which federal premium tax credits, available pursuant to 26 U.S.C. s.36B, enacted as part of the federal "Patient Protection and Affordable Care Act," Pub.L.111-148, as amended by the "Health Care and Education Reconciliation Act of 2010," Pub.L.111-152 (ACA), become unavailable due to the federal government repealing that section or failing to fund the premium tax credits, the State shared responsibility tax under this act shall not be enforced.

L.2018, c.31, s.4.