A 5322 New Jersey General Assembly · 2026-2027 Regular Session

Imposes temporary $1 million cap on use of net operating loss deductions under corporation business tax for certain privilege periods.

This bill limits the amount of net operating loss deductions that corporations in New Jersey can claim under the corporation business tax to a maximum of $1 million per tax period. It applies to privilege periods ending between July 31, 2026, and July 31, 2030, affecting approximately 600 taxpayers. If a company cannot use its full deduction due to this cap, the unused portion can be carried forward for an additional six tax periods or used to reduce taxable income by up to 75% in later periods ending between 2030 and 2032. The legislation also waives interest and penalties on estimated tax payments made between late 2025 and early 2027 that result from these new limits.

Issues: ✗ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jun 2026

Committee Review

General Assembly Passage

Jun 2026

Senate Passage

Jun 2026

Signed into Law

Jun 2026

Introduced Jun 23, 2026 Signed Jun 30, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Reprint · 4 edits

MODERATE

The First Reprint of A5322 adds a public utility exemption to the temporary $1 million cap on net operating loss (NOL) deductions under the corporation business tax. The bill was reported by the Assembly Budget Committee on June 28, 2026, with this amendment, and two new co-sponsors were added. The substantive policy change narrows who is subject to the NOL cap by carving out public utilities.

ELIGIBILITY

Public utilities are now exempt from the $1 million aggregate cap on net operating loss deductions for privilege periods ending on or after July 31, 2026 but before July 31, 2030. The text now reads 'claimed by a taxpayer, except for a public utility, shall not, in the aggregate, exceed $1,000,000.'

SCOPE

The bill's status changed from 'As introduced' to 'As reported by the Assembly Budget Committee on June 28, 2026, with amendments,' indicating it passed committee with changes.

TECHNICAL

Two new co-sponsors were added: Assemblywoman Katie Brennan (District 32, Hudson) and Senator Nicholas P. Scutari (District 22, Somerset and Union).

The full explanatory Statement section at the end of the bill was removed in the reprint version.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 30, 2026

Upper · Passed

Passed Senate (Passed Both Houses) (25-15)

upper

Jun 30, 2026

Lower · Passed

Passed by the Assembly (47-22-0)

lower

Jun 23, 2026

Introduced

Introduced, Referred to Assembly Budget Committee

lower

3 primary · 0 co-sponsors