Budget & Taxes (Tax Credits)

in committee · New Jersey · Senate Jan 13, 2026

S 2577: Expands eligibility under New Jersey earned income tax credit program to allow taxpayers who are victims of domestic abuse to claim credit with filing status of married filing separately.

This bill expands New Jersey's Earned Income Tax Credit (EITC) program to include victims of domestic abuse who file as "married filing separately." It removes the requirement for these taxpayers to file jointly with an abusive spouse to qualify for the credit, which they previously lost by filing separately. To claim the credit, victims must meet three conditions: living apart from their spouse when filing, being unable to file jointly due to domestic abuse, and indicating this on their tax return. The change aligns New Jersey's EITC rules with federal requirements for domestic abuse victims, ensuring they can access the credit without forcing them to remain in unsafe situations.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands EITC eligibility for domestic abuse victims, providing tax relief to low-income taxpayers by removing filing barriers.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 1824: "New Jersey Neighborhood Homes Investment Act"; establishes gross income tax credit for certain residential development.

This bill creates a tax credit for developers building or renovating affordable housing in New Jersey. It directly affects project sponsors (developers) who construct or substantially renovate qualifying homes sold at affordable prices to eligible homeowners earning 140% or less of the state's median household income. The credit equals the difference between reasonable development costs and the affordable sale price, capped at 35% of development costs or 80% of the state's median new home price. To qualify, projects must be in designated census tracts and certified by the New Jersey Housing Agency, with homes sold as primary residences.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for affordable housing developers, reducing state revenue to incentivize homes for low-to-moderate income residents (≤140% median income), aligning with tax relief and essential housing funding.90% confidence ✓ HousingSupports HousingCreates tax credit for affordable housing development targeting 140% AMI, directly funding new affordable units through developer incentives.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Affordable Housing Housing Finance Property Development

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in committee · New Jersey · Senate Jan 13, 2026

S 1602: Establishes disabled veteran tenant gross income tax credit.

This bill creates a tax credit for disabled veterans who rent their primary residence (homestead), allowing them to claim a credit of up to $1,000 annually for the portion of their rent that covers property taxes. The credit applies to rent paid for residential rental units where the disabled veteran occupies the home as their primary residence, based on 18% of rent being considered equivalent to property taxes. Married disabled veterans filing separately can each claim half the credit, while those sharing the home with others (not their spouse) can only claim the credit for the rent they personally paid. The credit is nonrefundable, cannot reduce taxes below zero, and works alongside an existing $50 credit for older or disabled renters. The bill is pending in the Senate Veterans' Affairs Committee as of its introduction date.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for disabled veterans renting, providing direct tax relief to lower-income renters. Matches 'support' criteria of tax relief for middle/lower income.95% confidence ✓ HousingSupports HousingProvides tax credit to disabled veterans renting homes, reducing housing costs for a vulnerable group, aligning with affordable housing support90% confidence ✓ VeteransSupports VeteransCreates tax credit for disabled veterans' housing costs, expanding financial benefits for a specific veteran subgroup through direct tax relief.95% confidence

Sub-Topics Income Tax Tax Credits Property Taxes Renters Tenant Rights Veteran Benefits Veteran Healthcare Veteran Housing

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in committee · New Jersey · Senate Jan 13, 2026

S 1656: Provides corporation business tax and gross income tax credits for employers of certain persons with disabilities.

This bill, S 1656, provides New Jersey employers with a tax credit for hiring individuals with disabilities. Employers can claim a 15% credit on wages paid to qualifying employees (meeting ADA standards, working ≥35 hours/week at ≥$15/hour), capped at $2,000 per employee annually for both corporation business tax and gross income tax. To qualify, employers must apply for certification through the Division of Vocational Rehabilitation Services, which must approve applications within 90 days or the application is deemed approved. The credit directly affects New Jersey businesses that hire eligible workers with disabilities, reducing their state tax liability while promoting inclusive employment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits reducing employer tax liability for hiring disabled workers, directly using fiscal policy to incentivize employment and support budget management through targeted tax relief.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit for hiring disabled workers, advancing employment opportunities and expanding workforce inclusion per ADA standards.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Professional Licensing Tags People with Disabilities

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in committee · New Jersey · Senate Jan 13, 2026

S 1887: Permits farm income averaging credit under the New Jersey gross income tax.

This bill allows New Jersey farmers with a farming business to calculate their state income tax using averaged farming income over a four-year period (current year plus three prior base years). The tax credit equals the difference between their normal tax bill and the bill calculated with averaged income, capped at $5,000 annually. It directly affects farmers whose income fluctuates due to weather, market conditions, or production cycles. The policy aims to smooth tax payments across profitable and less profitable years, providing more predictable tax obligations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit to smooth payments for farmers, reducing tax burden during fluctuating income years, aligning with tax relief indicators for middle/lower income.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

SR 20: Urges Governor to take steps for State participation in federal tax credit scholarship program.

This non-binding Senate Resolution (SR 20) urges New Jersey's Governor to adopt the federal tax credit scholarship program created by the "One Big Beautiful Bill Act" (Pub.L.119-21). If adopted, the program would allow New Jersey taxpayers to claim a federal tax credit of up to $1,700 annually for donations to state-recognized scholarship organizations, which would then provide scholarships covering elementary/secondary education costs like tuition, books, and transportation. The resolution directly affects New Jersey families seeking educational options, as state participation would determine whether residents can access these tax benefits and scholarship funds starting January 2027. States have sole discretion to opt into the program, and this resolution formally requests the Governor take necessary steps to join it.

Topics ✓ Budget & TaxesSupports Budget & TaxesPromotes tax credit for education donations, providing tax relief to donors, aligning with tax relief indicators.90% confidence ✓ EducationSupports EducationUrges adoption of tax credit scholarships for K-12 education, expanding access and private funding through donor incentives.95% confidence

Sub-Topics Tax Credits Higher Education School Choice Student Financial Aid

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in committee · New Jersey · Senate Jan 13, 2026

S 1241: "New Jersey Makes, the World Takes Act"; allows corporation business tax credit for selling New Jersey made products.

This bill creates a tax credit for corporations selling retail products made entirely in New Jersey. Corporations can claim a $3.31 credit for every $100 in sales of qualifying "New Jersey made products," defined as goods where all significant parts, processing, and labor originate in New Jersey (with no more than negligible outside content). The credit reduces liability under New Jersey's corporation business tax, not sales tax. It directly affects businesses selling such products, offering a financial incentive to prioritize in-state manufacturing.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for NJ-made products, reducing corporate tax liability to incentivize local manufacturing and economic growth.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 2611: Establishes program to incentivize hiring and continued employment of individuals with developmental disabilities.

This bill establishes a New Jersey tax credit program to encourage businesses to hire and retain employees with developmental disabilities. Employers qualify for a credit of $1 per hour worked (up to $2,000 per employee annually), provided the employee works at least 500 hours in the state and the employer meets eligibility requirements like offering qualifying health insurance. The program is funded with a $2 million annual cap, administered by the Division of Developmental Disabilities, and requires employers to apply yearly by January 15. It directly affects New Jersey employers and individuals with developmental disabilities meeting the defined criteria (including autism, cerebral palsy, or intellectual disabilities).

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates $1/hour tax credit for businesses hiring disabled workers, providing tax relief within $2M annual budget cap, directly advancing fiscal policy for employment incentives.90% confidence ✓ HealthcareSupports HealthcareRequires employers to offer qualifying health insurance to qualify for tax credit, directly promoting employer-sponsored health coverage as a condition for incentives.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit incentivizes hiring/retention of workers with developmental disabilities, expanding employment opportunities and supporting inclusive workplace practices.95% confidence

Sub-Topics Tax Credits Tax Incentives Insurance

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in committee · New Jersey · Senate Mar 5, 2026

S 1799: Increases annual limit of total tax credits certified for qualified projects under Neighborhood Revitalization Tax Credit Program.

This bill increases the annual cap on tax credits available for neighborhood revitalization projects in New Jersey from $15 million to $65 million. It directly affects businesses that fund qualified neighborhood preservation projects, allowing them to claim larger tax credits against certain business taxes. The key change is raising the total credit limit per fiscal year and adding a carryover provision: if credits aren't fully used in one year, the unused amount rolls over to the next year. This expands funding flexibility for projects under the Neighborhood Revitalization Tax Credit Program, which supports community development through private investment.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit cap from $15M to $65M, providing tax relief for businesses funding neighborhood projects.95% confidence ✓ HousingSupports HousingIncreases tax credits for neighborhood revitalization, directly funding housing preservation and development projects through expanded annual cap and carryover provision.95% confidence

Sub-Topics Tax Credits Community Development Property Development

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in committee · New Jersey · Senate Jan 13, 2026

S 1440: Provides gross income tax credit for qualified union dues paid to labor organizations.

S 1440 creates a refundable gross income tax credit for New Jersey taxpayers who pay qualified union dues to labor organizations. The credit equals the full amount of union dues paid during the tax year, applied after other credits, and can result in a cash refund if it reduces tax liability to zero. It defines "qualified union dues" as dues, fees, or assessments paid to labor organizations (which include groups negotiating wages, hours, or working conditions) and requires taxpayers to verify payments to the Division of Taxation. This policy directly affects New Jersey residents who are union members or public employees represented by qualifying labor organizations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for union dues, offering direct tax relief to middle-income workers through reduced tax liability and potential cash refunds.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides refundable tax credit for union dues paid to organizations negotiating wages/hours/conditions, directly supporting collective bargaining and reducing financial barriers for workers.95% confidence

Sub-Topics Income Tax Tax Credits Collective Bargaining

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