Provides gross income tax exclusion for capital gains from sale of certain employer securities.

This bill excludes capital gains from state income tax when employees sell employer securities to specific employee ownership structures. It applies to small New Jersey businesses (fewer than 500 employees, with headquarters in NJ) selling to an employee stock ownership plan (ESOP), a New Jersey S corporation owned by an ESOP, or an eligible worker-owned cooperative. The exclusion requires that the new owner holds at least 30% of the business's shares after the sale. This directly benefits employees of qualifying small businesses by reducing tax burdens on sales that transition ownership to workers. The policy change takes effect immediately for taxable years starting after enactment.