Allows exemption from New Jersey gross income of certain capital gains from sale or exchange of qualified small business stock.*

S4503 allows New Jersey individual taxpayers to deduct capital gains from selling qualified small business stock (QSBS) held for over five years from their state gross income. The deduction amount depends on the percentage of the company's payroll attributable to New Jersey: up to $10 million (or 10x the stock's adjusted basis) if 80%+ payroll is in-state, or up to $8 million (or 8x the basis) otherwise. To qualify, the stock must be in a C corporation meeting strict criteria (under $50M assets, fewer than 225 employees, active business operations in non-excluded sectors like services or farming), and held for five years. This deduction is modeled after federal tax treatment but applies specifically to New Jersey income tax.