New Jersey Statutes Title 54A. New Jersey Gross Income Tax Act 54A § 9-8.1

a. Whenever any taxpayer or resident shall be entitled to any refund of taxes pursuant to the “New Jersey Gross Income Tax Act” (N.J.S.54A:1-1 et seq.), including an earned income tax credit provided as a refund pursuant to P.L.2000, c. 80 (C.54A:4-6 et al.), or whenever any individual is eligible to receive a rebate pursuant to section 3 of P.L.2020, c. 94 (C.54A:9-30), or a homestead rebate or credit pursuant to P.L.1990, c. 61 (C.54:4-8.57 et al.), P.L.1999, c. 63 (C.54:4-8.58a et al.), P.L.2004, c. 40 or P.L.2007, c. 62 (C.18A:7F-37 et al.), and if the rebate or credit is not required to be paid over to the municipal tax collector under the provisions of section 8 of P.L.1990, c. 61 (C.54:4-8.64), and at the same time the taxpayer or resident shall be indebted to any agency or institution of State Government, to the Victims of Crime Compensation Board for the portion of an assessment ordered pursuant to section 2 of P.L.1979, c. 396 (C.2C:43-3.1) for deposit in the Victims of Crime Compensation Board Account or restitution ordered to be paid to the board pursuant to N.J.S.2C:44-2 for deposit in the Victims of Crime Compensation Board Account, or for child support under Title IV-A, Title IV-D, or Title IV-E of the federal Social Security Act (42 U.S.C. s.601 et seq.), or other indebtedness in accordance with section 1 of P.L.1995, c. 290 (C.2A:17-56.11b) the Department of the Treasury shall apply or cause to be applied the refund, homestead rebate or credit, or all, or so much of any or all as shall be necessary, to satisfy the indebtedness. Child support indebtedness shall take precedence over all other indebtedness. The Department of the Treasury shall retain a percentage of the proceeds of any collection setoff as shall be necessary to provide for any expenses of the collection effort.

b. A State department or agency which is owed a debt shall notify the Department of the Treasury of the existence of the debt and shall request that the Department of the Treasury execute a setoff as provided for in this section.