Budget & Taxes (Income Tax)

signed · New Jersey · General Assembly Jun 30, 2026

A 5323: Modifies eligibility for alternative business calculation adjustment allowed under gross income tax.

This bill modifies New Jersey's gross income tax by introducing income limits for a specific tax adjustment that allows businesses to offset losses in one category against gains in another. Under the new rules, taxpayers with gross income of $500,000 or less will retain the ability to deduct 50 percent of their calculated business increment from their taxable income. For those earning between $500,000 and $1 million, the deduction is reduced to 25 percent, while individuals with gross income exceeding $1 million will no longer be eligible for any deduction. The legislation also clarifies that losses from this calculation can be carried forward for up to 20 taxable years to offset future income.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces tax burden for lower-income businesses by preserving full deductions, while limiting benefits for higher earners, promoting fiscal equity.85% confidence

Sub-Topics Business Taxes Income Tax

in committee · New Jersey · General Assembly Jun 28, 2026

A 5340: Provides gross income tax credit to qualified family caregivers for care and support expenses incurred for qualifying family members.

This bill creates a New Jersey gross income tax credit for qualified family caregivers who pay for care and support expenses for qualifying family members. The credit allows caregivers to reduce their tax liability by up to $3,000 annually, or $5,000 if the person they care for is a veteran or has a disability, with the remaining amount potentially refunded if taxes are fully offset. To claim the benefit, caregivers must submit detailed documentation, such as receipts, proof of payment, and medical certifications, to the Division of Taxation. The legislation also clarifies that caregivers can claim this credit alongside existing dependent deductions or other credits, while ensuring the total credit for a single care recipient does not exceed the annual limits even if multiple family members provide care.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a tax credit to reduce caregiver liability, offering direct fiscal relief and supporting family support services.90% confidence ✓ HealthcareSupports HealthcareBill provides tax credits to family caregivers, directly supporting healthcare access and reducing financial burdens on caregivers.90% confidence ✓ VeteransSupports VeteransBill provides a tax credit specifically increased for caregivers of veterans, directly supporting veteran care and benefits.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Jun 22, 2026

S 4478: Modifies gross income tax withholding requirements for certain State Lottery winnings received by persons without social security or tax identification number.

This bill requires the New Jersey State Lottery to withhold an additional eight percent of gross income tax from lottery prizes exceeding $600 if the winner does not provide proof of a federal social security or tax identification number. Currently, the state only applies this higher withholding rate to prizes over $500,000, but the legislation lowers that threshold to $600 for individuals lacking valid identification numbers. The change directly affects lottery winners who fail to submit the required identification documents and aims to ensure tax compliance for those without standard taxpayer identification.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill closes a tax loophole by increasing withholding for unverified lottery winners, ensuring proper tax collection and fiscal accountability.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jun 26, 2026

S 4521: Provides CBT and gross income tax credits for construction or expansion of certain meat processing facilities.

This bill offers tax credits to businesses in New Jersey that build or expand rural meat processing facilities. To qualify, projects must include specific equipment like smokehouses, sausage lines, packaging areas, or cold storage units and work with regional agricultural centers to support local supply chains. Eligible companies can receive a credit equal to 20% of their project costs, or 30% if they include the required specialized equipment, with a maximum cap of $5 million per project. The total amount of credits available under this program is limited to $50 million, and unused credits can be carried forward for up to four years. Additionally, the state will require a report five years after the law takes effect to evaluate how well the program encourages new facility construction.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits to businesses, offering fiscal relief and encouraging investment in rural meat processing facilities.85% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jun 4, 2026

S 4410: Allows gross income tax deduction for sales and use tax and societal benefits charges paid on electric and gas utility bills.

This bill allows New Jersey taxpayers to deduct sales and use taxes and societal benefits charges paid on their electric and gas utility bills from their gross income. The primary change applies specifically to taxes associated with utility service provided to a taxpayer's principal residence. By permitting this deduction, the legislation aims to reduce the taxable income for individuals who pay these specific utility-related fees. The bill amends existing state statutes to formalize this new tax treatment without altering how utility companies collect or report these charges.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing deductions for utility taxes, reducing taxable income for residents.90% confidence ✓ EnergySupports EnergyBill reduces utility costs for consumers by allowing tax deductions, aligning with the indicator to protect utility consumers.75% confidence

Sub-Topics Income Tax Sales Tax

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in committee · New Jersey · General Assembly Jun 4, 2026

A 5215: Extends eligibility for certain veterans' gross income tax exemptions to include veterans of all Uniformed Services of United States.

This bill expands New Jersey tax exemptions for veterans to include all branches of the Uniformed Services of the United States, such as the NOAA and the Public Health Service, in addition to the currently covered Armed Forces and National Guard. It achieves this by amending state tax code sections to replace the specific reference to the "Armed Forces" with the broader legal definition of "Uniformed Services," thereby extending a $6,000 gross income deduction to these additional groups. The legislation also ensures that military pension and survivor benefit payments received by these newly included veterans remain exempt from state gross income tax. These changes take effect for taxable years beginning on or after January 1 of the year following the bill's enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands tax exemptions for veterans, providing tax relief and financial support to a specific group.90% confidence ✓ VeteransSupports VeteransBill expands tax exemptions to include all Uniformed Services, strengthening financial benefits for veterans.95% confidence

Sub-Topics Income Tax Pensions National Guard & Reserve Veteran Benefits

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in committee · New Jersey · Senate Jun 8, 2026

S 4422: Provides gross income tax credit for certain household pet expenses.

This New Jersey bill introduces a gross income tax credit for taxpayers who own household pets, specifically dogs or cats kept for companionship. The legislation allows owners to claim up to $300 annually for everyday pet expenses like food and supplies, plus an additional $600 for veterinary care, with a combined maximum credit of $900 per year. To receive this benefit, owners must file their tax returns with documentation proving pet ownership and receipts for the qualifying expenses. The law explicitly excludes pets used in breeding, research, law enforcement, or medical settings from this credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a tax credit for pet owners, offering financial relief and reducing tax liability for households.85% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · General Assembly Jun 8, 2026

A 5230: Allows gross income tax deduction for sales and use tax and societal benefits charges paid on electric and gas utility bills.

This bill allows New Jersey taxpayers to deduct sales and use taxes and societal benefits charges paid on their electricity and natural gas bills for their primary homes from their gross income. The legislation directly affects individuals who pay utility taxes and aims to reduce their overall state income tax liability by treating these specific utility costs as deductible expenses. By amending existing tax statutes, the bill creates a new section that explicitly permits this deduction for the taxable year in which the taxes are paid. This change does not alter how utility companies charge for services or how taxes are collected, but rather provides a financial benefit to homeowners through the state tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing deductions for utility taxes, reducing overall state income tax liability for taxpayers.95% confidence

Sub-Topics Income Tax Sales Tax

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in committee · New Jersey · General Assembly Jun 23, 2026

A 5308: Increases gross income tax deduction available to veterans from $6,000 to $9,000 and indexes deduction for inflation.

This New Jersey bill increases the state gross income tax deduction for honorably discharged veterans from $6,000 to $9,000. The change applies to veterans who served in the U.S. Armed Forces, reserve components, or the New Jersey National Guard and affects their calculation of state tax liability starting with the 2026 tax year. Additionally, the bill mandates that the $9,000 deduction amount be adjusted annually for inflation beginning in 2027 based on changes in the Chained Consumer Price Index. This adjustment ensures the tax benefit maintains its value over time without requiring new legislation each year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax deduction for veterans, providing tax relief and reducing state tax liability for a specific group.90% confidence ✓ VeteransSupports VeteransBill increases tax deduction for veterans from $6,000 to $9,000 and adds inflation indexing, expanding financial benefits.95% confidence

Sub-Topics Income Tax Veteran Benefits Veteran Education Veteran Healthcare

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in committee · New Jersey · General Assembly May 18, 2026

A 5121: Increases gross income tax rates for taxpayers with taxable income exceeding $2,000,000.

This bill proposes to increase the gross income tax rate for individuals in New Jersey whose taxable income exceeds $2,000,000. It directly affects high-income earners by amending the state tax code to apply a higher percentage to income above this specific threshold. The legislation would modify the existing tax tables to ensure that only the portion of income surpassing $2 million is taxed at the new, elevated rate. This change aims to generate additional revenue from the wealthiest taxpayers while leaving tax rates for lower and middle-income earners unchanged.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax rates on high-income earners to generate additional state revenue, aligning with fiscal management and funding public services.95% confidence

Sub-Topics Income Tax

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