This bill allows New Jersey resident taxpayers to deduct 50 percent of the costs incurred for in vitro fertilization (IVF) treatment from their gross income. The deduction applies to expenses paid during the taxable year for the taxpayer or their spouse or domestic partner, provided these costs are not covered by specific health insurance plans and are not otherwise deductible under existing law. The bill defines in vitro fertilization as all medical and laboratory procedures necessary to create a human embryo outside the body.

The legislation aims to provide financial relief to taxpayers who face out-of-pocket expenses for IVF treatments, particularly those who do not have insurance coverage for such procedures. Currently, taxpayers can only deduct unreimbursed medical expenses that exceed two percent of their gross income, which may limit the ability of many to benefit from existing tax deductions. By introducing this specific deduction for IVF costs, the bill seeks to support individuals and couples dealing with infertility by making treatment more financially accessible. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 following its enactment.