Budget & Taxes (Income Tax)

in committee · New Jersey · General Assembly Mar 9, 2026

A 3613: "Saving Our Diners and Preserving Our Past (SODA POP) Act"; provides sales and use tax exemption and corporation business and gross income tax credits for historic diners and historic restaurants included in online registry.*

This bill creates tax incentives for historic diners and restaurants in New Jersey that meet specific criteria. To qualify, establishments must have operated continuously for at least 25 years (including pandemic closures), qualify as small businesses, comply with health/safety rules, and be family-owned. Approved businesses receive a sales tax exemption on prepared food and beverages for on-site consumption and corporation business/gross income tax credits. The program requires annual registration through a state registry established by the Division of Travel and Tourism, with applications reviewed and approved by the Director.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides sales tax exemption and tax credits for qualifying historic diners, reducing their tax burden and supporting small businesses through targeted fiscal incentives.95% confidence

Sub-Topics Income Tax Sales Tax Tax Incentives

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in committee · New Jersey · General Assembly Jan 13, 2026

A 1942: Provides credits against corporation business and gross income taxes for certain employers that invest in human capital.

This bill (A 1942) provides tax credits to small New Jersey businesses that invest in employee job training. Qualified employers (businesses with under $2.5 million annual revenue, operating in NJ for fewer than 10 years, and employing NJ workers) can claim a 10% credit on training costs, up to $2,000 per employee annually. The credit applies to both corporation business tax and gross income tax, requires training to lead to industry-recognized credentials, and can be claimed for a maximum of five years. It does not reduce tax liability below the statutory minimum or zero.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to small NJ businesses for employee training, reducing their tax liability and incentivizing workforce development.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credits for employer job training investments, directly advancing workforce development and employment standards through financial incentives for skill-building.95% confidence

Sub-Topics Business Taxes Income Tax Workforce Development

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in committee · New Jersey · Senate Feb 5, 2026

S 3350: Establishes gross income tax credit for full-time tuition cost at certain New Jersey institutions of post-secondary education.

S 3350 creates a New Jersey tax credit for residents with gross income under $150,000 who pay full-time tuition at qualifying in-state institutions. It provides a 10% credit on tuition costs, capped at $1,000 per year, for either the taxpayer’s own education or for dependents under age 22. The credit applies to four-year public colleges, county colleges, and accredited vocational schools in New Jersey. Taxpayers cannot claim this credit if they already deducted the tuition for the dependent or if a parent claimed it for them. The credit is available for taxable years starting January 1 after the bill’s enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for tuition, reducing tax burden for middle-income residents under $150k, aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationProvides 10% tax credit for in-state tuition at public/vocational colleges, increasing affordability and access to higher education for NJ residents under $150k income.95% confidence

Sub-Topics Income Tax Tax Credits Higher Education Student Financial Aid

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in committee · New Jersey · Senate Feb 2, 2026

S 3273: Increases gross income tax deduction available to veterans from $6,000 to $12,000.

S 3273 increases New Jersey's tax deduction for eligible veterans from $6,000 to $12,000, directly affecting veterans honorably discharged from active duty in the U.S. Armed Forces, National Guard, or reserve components. The bill amends the state's tax code to double the deduction amount available when calculating gross income tax liability. This change applies to taxable years beginning after the bill's enactment date. The deduction remains available to qualifying veterans regardless of other personal exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for veterans, reducing their tax liability - a direct tax relief measure aligning with support indicators for middle/lower income tax relief.95% confidence ✓ VeteransSupports VeteransDoubles tax deduction for veterans, expanding financial benefits directly addressing veterans' tax relief.95% confidence

Sub-Topics Income Tax Veteran Benefits Veteran Education Veteran Employment

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in committee · New Jersey · General Assembly Jan 13, 2026

A 2634: Extends certain federal income tax advantages of individual health savings accounts to individual taxpayers under the New Jersey gross income tax.

This bill extends New Jersey's state income tax benefits for Health Savings Accounts (HSAs) to mirror the federal tax advantages currently available to individual taxpayers. It amends existing law (P.L.1992, c.161) to align New Jersey's gross income tax treatment with federal HSA rules, allowing residents to deduct HSA contributions and enjoy tax-free growth on savings. The policy change directly affects New Jersey individual taxpayers who use HSAs for qualified medical expenses. The bill does not alter health insurance plan requirements or coverage provisions but adjusts state tax treatment to match federal standards. It remains pending before the Assembly Commerce and Economic Development Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends tax deductions for HSA contributions, aligning NJ tax treatment with federal rules to provide individual taxpayer relief.95% confidence ✓ HealthcareSupports HealthcareExtends tax benefits for Health Savings Accounts (HSAs), enabling tax-free savings for medical expenses and improving healthcare affordability access for NJ residents.95% confidence

Sub-Topics Income Tax Insurance

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in committee · New Jersey · General Assembly Jan 13, 2026

A 1954: Allows gross income tax deduction for surviving spouses of certain veterans.

This New Jersey bill adds a $3,000 annual deduction to the state's gross income tax for surviving spouses of veterans who: (1) died while on active duty, (2) were honorably discharged from active duty, or (3) were released under honorable circumstances from active duty. It directly affects surviving spouses of qualifying veterans who do not remarry, providing tax relief equivalent to the deduction previously available only to living veterans. The deduction is applied against gross income each year the spouse qualifies, ending if they remarry. The policy extends existing tax benefits for veterans' families to acknowledge the financial impact on surviving spouses.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $3,000 annual tax deduction for qualifying veterans' surviving spouses, offering direct tax relief per bill summary.90% confidence ✓ VeteransSupports VeteransBill provides $3,000 annual tax deduction for surviving spouses of qualifying veterans, expanding benefits previously available only to living veterans, directly strengthening veteran support services.95% confidence

Sub-Topics Income Tax Military Families

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in committee · New Jersey · General Assembly Jan 13, 2026

A 138: Provides gross income tax deduction for certain wages of kindergarten through grade 12 school teachers.

This bill creates a 25% gross income tax deduction for K-12 teachers' wages. It directly affects teachers employed by public school districts (boards of education), charter schools, Renaissance school projects, or nonpublic schools in New Jersey. The deduction equals 25% of the wages paid by these employers during the taxable year. The policy applies to taxable years beginning after the bill's enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% tax deduction for K-12 teachers' wages, reducing taxable income and offering direct tax relief to educators, aligning with support indicators for middle-income tax relief.95% confidence ✓ EducationSupports EducationProvides 25% tax deduction for K-12 teachers' wages, directly supporting educator compensation and financial well-being per bill summary.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides 25% tax deduction on teachers' wages, increasing net compensation and directly supporting teacher employment benefits under Labor & Employment.90% confidence

Sub-Topics Income Tax K-12 Education Teachers

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in committee · New Jersey · General Assembly Jan 13, 2026

A 3191: Consolidates all categories of gross income for cross-claiming of net losses and allows 20 year loss carryforward under New Jersey gross income tax; repeals alternate business income calculation.

This bill (A-3191) changes New Jersey's gross income tax by consolidating all 16 income categories into one for loss offsetting. It allows taxpayers to use losses from one income source (like business profits) to offset gains from another (like investment income), and extends the carryforward period for unused net losses to 20 years. The bill repeals a prior limited rule that only permitted cross-offsetting for four business-related income categories. This change primarily affects businesses and investors with diverse income streams, making New Jersey's tax system more flexible compared to its previous category-based structure.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modifies tax rules to allow broader loss offsetting and 20-year carryforwards, providing business tax relief under gross income tax.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · New Jersey · General Assembly Feb 19, 2026

A 4427: Indexes for inflation taxable income brackets under New Jersey gross income tax.

This bill (A4427) would automatically adjust New Jersey's income tax brackets each year based on inflation, preventing "bracket creep" where inflation pushes taxpayers into higher tax brackets without real income growth. It directly affects all New Jersey residents who pay state income tax by ensuring the income thresholds for each tax rate rise with the cost of living. The key mechanism requires the state to annually update the taxable income levels in the tax tables using the Consumer Price Index (CPI), as specified in the proposed amendment to N.J.S.54A:2-1. This change would maintain the same tax burden for middle- and lower-income earners as prices increase, without altering the current tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents bracket creep by adjusting tax thresholds for inflation, maintaining tax fairness without increasing rates for middle-income earners.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · General Assembly Jan 13, 2026

A 3677: Provides corporation business tax and gross income tax credits to long-term care facilities that increase number of residential units reserved for single occupancy by at least five percent.

Bill A 3677 provides tax credits to New Jersey long-term care facility operators who increase single-occupancy residential units by at least 5%. Specifically, facilities licensed under NJ law (including nursing homes and assisted living residences) can claim a $100 credit for every 5% increase in single-occupancy units, capped at $2,000 per year against either corporation business tax or gross income tax. The credit applies only to new single-occupancy units added during the tax year and cannot reduce tax liability below zero. This policy directly affects facility owners seeking to expand single-occupancy options while receiving financial incentives through state tax relief.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits ($100/5% increase, capped at $2k) to facilities, reducing their tax burden under NJ tax code, aligning with tax relief indicators.90% confidence

Sub-Topics Business Taxes Income Tax

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