Budget & Taxes in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

S 2510: Requires Governor to transmit budget sustainability statement along with annual budget message.

S 2510 requires New Jersey's Governor to include a budget sustainability statement with the annual budget message. This statement must analyze whether proposed spending for the next fiscal year can be sustained without raising taxes or reducing state savings, including accounting for structural spending gaps, one-time revenues, and mandatory increases from debt payments, contracts, or public assistance programs like Medicaid. The bill mandates that any projected spending increases must be offset by estimated future revenue or reduced mandatory spending. It applies to all budget recommendations and takes effect immediately for the next budget cycle. This requirement aims to improve long-term fiscal planning by making sustainability analysis a standard part of the budget process.

Topics ✓ Budget & Taxes

Sub-Topics State Budget

in committee · New Jersey · Senate Jan 13, 2026

S 238: Revises gross income tax credit for child and dependent care expenses by expanding income eligibility and increasing credit.

S 238 expands New Jersey's tax credit for child and dependent care expenses, directly benefiting residents with childcare costs who qualify for the federal credit. It raises the income limit from $60,000 to $150,000 for eligibility and increases the maximum credit amount to $1,000 for one child (up from $500) and $2,000 for multiple children (up from $1,000). The bill also adjusts income brackets, extending the 50% credit rate to taxpayers earning under $50,000 (previously $20,000) and expanding all other brackets. These changes apply to New Jersey gross income tax returns for taxable years beginning after enactment.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Income Tax Tax Credits

in committee · New Jersey · Senate Jan 13, 2026

S 476: Provides corporation business and gross income tax credit for employment of persons who have experienced job loss due to automation.

This New Jersey bill (S 476) creates a tax credit for businesses with headquarters in the state that hire workers who lost jobs due to automation. It provides a credit equal to 10% of the salary paid to each qualifying employee (capped at $2,500 per employee per year), provided the business employs them for at least seven months. To qualify, the employee must have previously been laid off because their job was replaced by automation - defined as systems that perform tasks without continuous human input. The credit applies to both corporation business tax and gross income tax, directly benefiting affected workers and incentivizing NJ-based employers to hire them.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Business Taxes Income Tax Tax Credits

in committee · New Jersey · Senate Jan 13, 2026

S 927: "Grown Here, Eaten Here Act"; provides CBT and GIT tax credits to qualifying food establishments for costs of purchasing certain local ingredients.

S 927, the "Grown Here, Eaten Here Act," would provide New Jersey businesses with a tax credit if enacted. Qualifying food establishments - including restaurants, food manufacturers, and certain breweries - could claim a 10% credit against their state business or income taxes for costs paid to purchase locally grown fruits, vegetables, or other ingredients produced within New Jersey. The credit is limited to 50% of the taxpayer’s total tax liability for the year and can be carried forward for up to 20 years if unused. The bill requires the state tax and agriculture departments to create rules for administering the program.

Topics ✓ Budget & Taxes

Sub-Topics Procurement Tax Credits

in committee · New Jersey · Senate Jan 13, 2026

S 765: Prohibits certain third-party property tax appeals.

This bill prohibits property taxpayers from appealing assessments or exemptions related to financial agreements between other taxpayers and local governments (such as tax abatements). It restricts appeals to only a taxpayer's own property, ending the ability to challenge assessments on neighboring properties or those tied to specific agreements. The bill does not affect local governments' right to appeal assessments on any property. Key changes include banning third-party appeals under the "Long Term Tax Exemption Law" and limiting appeals to one's own property valuation. This aims to reduce costly, complex appeals that create uncertainty in local government budgets.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Jan 13, 2026

S 1360: Establishes gross income tax credit and corporation business tax credit for student loan payments.

This New Jersey bill (S 1360) creates tax credits for residents and employers who pay student loans used for higher education expenses. Qualified taxpayers (New Jersey residents with associate’s, bachelor’s, or graduate degrees in STEM fields who worked in the state) can claim a credit against their state income tax equal to a portion of their student loan payments, based on a federal benchmark. Employers can also claim a credit for paying employees’ eligible student loans (100% for full-time, 50% for part-time), with unused credits carried forward up to seven years. The bill specifically targets STEM graduates and aims to reduce student debt burden through state tax incentives.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Business Taxes Income Tax Tax Credits Student Financial Aid

in committee · New Jersey · Senate Jan 13, 2026

S 2603: Provides sales and use tax exemption for sales of books at school book fairs.

This bill exempts book sales at school book fairs from New Jersey's sales and use tax. It directly affects elementary and secondary schools holding book fairs where books are sold exclusively to students and their parents or guardians. The law defines a "school book fair" as events held at these schools with limited sales to the school community. The exemption would take effect four months after the bill is enacted.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Sales Tax Tax Incentives Libraries

in committee · New Jersey · Senate Jan 13, 2026

S 3025: Grants credit against business income taxes to developer of rental housing reserved for occupancy by veterans.

This bill creates a 10% tax credit against New Jersey business income taxes for developers who build or rehabilitate rental housing exclusively reserved for veterans. The credit covers 10% of "approved costs" (including land, construction, materials, and labor) for qualifying projects, with a maximum annual credit of $5 million statewide. Developers must reserve all units for veterans for at least 15 years and apply for state approval through the Department of Community Affairs. The policy directly affects developers of new or rehabilitated rental properties meeting specific veteran-occupancy requirements.

Topics ✓ Budget & Taxes ✓ Housing ✓ Veterans

Sub-Topics Tax Credits Affordable Housing Property Development Renters Veteran Employment Veteran Housing Veteran Mental Health

in committee · New Jersey · Senate Jan 13, 2026

S 483: Provides grants to nonprofit organizations that provide financial literacy classes; appropriates $100,000.

S 483 creates a $100,000 grant program to help nonprofit organizations teach financial literacy. The Commissioner of Banking and Insurance will award grants of up to $5,000 each to 501(c)(3) nonprofits focused on financial counseling or education. These grants fund classes covering budgeting, credit management, loans, and investing, specifically for high school, college, and adult education settings. The program expires after one year or once all $100,000 is spent.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Higher Education K-12 Education

in committee · New Jersey · Senate Jan 13, 2026

S 1559: Provides gross income tax deduction for New Jersey fuel taxes paid through purchases of motor fuel for personal use of motor vehicles.

This bill creates a New Jersey gross income tax deduction for state fuel taxes paid on motor fuel used for personal vehicle operation. It allows single, married, or head-of-household filers to deduct these taxes from their taxable income, capped at $1,000 for 2021 and $2,000 for subsequent years. The deduction excludes amounts reimbursed by employers or claimed as business expenses elsewhere. It applies to all income levels and filing statuses, directly benefiting New Jersey residents who pay state fuel taxes for personal driving.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax

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