The bill proposes a gross income tax deduction for New Jersey residents who incur expenses related to in vitro fertilization (IVF) treatment. Specifically, it allows taxpayers to deduct 50 percent of the amount paid for IVF costs during the taxable year for themselves or their spouse or domestic partner, provided these costs are not covered by certain health insurance plans and are not otherwise deductible from gross income. The bill defines in vitro fertilization as all medical and laboratory procedures necessary to create a human embryo outside the body.

This legislation aims to provide financial relief to taxpayers who face out-of-pocket expenses for IVF treatments, particularly those who do not have health 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 expenses, the bill seeks to enhance support for individuals and couples dealing with infertility. The act is set to take effect immediately and will apply to taxable years beginning on or after January 1 following its enactment.