Budget & Taxes (Income Tax)

in committee · New Jersey · Senate Jan 13, 2026

S 2295: Disallows tax deduction under corporation business tax and gross income tax for punitive damages paid in connection with legal action; includes amount paid as punitive damages on behalf of taxpayer in income for tax purposes.

This bill changes New Jersey tax rules for businesses regarding punitive damages. It prevents corporations and business owners from deducting punitive damages paid in legal settlements or judgments as a business expense. Instead, the amount paid (or covered by insurance) must be included in the business's taxable income. The law applies to both the corporation business tax and gross income tax for taxable years starting after its effective date.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents tax deduction for punitive damages, requiring inclusion in taxable income, closing a loophole that reduces state tax revenue.90% confidence

Sub-Topics Business Taxes Income Tax

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in committee · New Jersey · Senate Jun 11, 2026

S 1903: Establishes NJ Military Family Relief Fund; provides for designation on State gross income tax return to permit taxpayers to make voluntary contributions to military family relief fund.

S 1903 establishes the New Jersey Military Family Relief Fund, a permanent fund in the State Treasury funded by voluntary taxpayer contributions designated on state income tax returns. The fund provides grants of up to $2,500 to cover essential expenses like food, housing, and medical costs for New Jersey residents who are active-duty military members (including reserves), National Guard members, veterans (with honorable discharge), or surviving spouses of eligible service members. To qualify, applicants must be NJ residents for at least 12 consecutive months, demonstrate financial hardship, and cannot receive more than one grant within a 12-month period. The Adjutant General of the Department of Military and Veterans Affairs administers the program, determining eligibility and issuing grants from available funds.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates voluntary tax contribution mechanism to fund military family relief grants, directly supporting essential program funding through tax return designation.90% confidence ✓ HousingSupports HousingBill provides housing cost grants (up to $2,500) for military families through relief fund, explicitly listing housing as covered expense.80% confidence ✓ VeteransSupports VeteransProvides grants up to $2,500 for veterans' essential expenses including medical costs, directly funding veteran support services through voluntary contributions.95% confidence

Sub-Topics Income Tax Military Families National Guard & Reserve

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in committee · New Jersey · Senate Jan 13, 2026

S 1406: Excludes contributions made to certain retirement savings plans under gross income tax.

This bill (S 1406) would amend New Jersey's tax code to exclude contributions to certain retirement savings plans from taxable gross income. It directly affects New Jersey residents who contribute to qualifying retirement accounts, such as 401(k)s or IRAs, by reducing their taxable income for state tax purposes. The key provision changes the definition of "New Jersey gross income" under N.J.S.54A:5-1 to exclude these specific retirement contributions. This would lower state tax liability for eligible taxpayers without altering federal tax treatment. The bill is currently in the introduction stage (2026) and has not yet been debated or voted on.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes retirement contributions from taxable income, reducing state tax liability for residents - direct tax relief provision.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Mar 5, 2026

S 1821: Allows gross income tax credits to certain renters whose rent exceeds 35 percent of gross income.

This bill creates a refundable tax credit for New Jersey renters whose rent exceeds 35% of their gross income. It directly affects low-to-moderate income residents (earning under $60,000 annually) living in the state, with credit amounts based on income level and location: up to 100% of excess rent for those earning under $25,000 (or under $50,000 in high-cost areas), 75% for middle-income renters, and 50% for higher-income renters in non-high-cost areas. The credit, capped at $1,000 per year, is applied against state income tax and can be claimed retroactively for the previous tax year. Renters receiving federal or state housing subsidies instead receive a credit equal to 1/12 of their unsubsidized rent.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credits to low-income renters, reducing their tax burden and offering fiscal relief for vulnerable residents under budget & taxes policy.95% confidence ✓ HousingSupports HousingProvides refundable tax credits to low-income renters paying >35% of income on rent, directly increasing housing affordability for vulnerable residents.95% confidence

Sub-Topics Income Tax Tax Credits Affordable Housing Renters Tenant Rights

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in committee · New Jersey · Senate Jan 13, 2026

S 1519: Allows gross income deduction for all wage income received by high school and college graduates during two consecutive taxable years following graduation from in-State school.

This bill allows New Jersey residents who graduated from an in-state high school or college to deduct all their wage income from state income tax for two consecutive years after graduation. It directly affects recent graduates who live in New Jersey for the entire tax year of the deduction. To qualify, graduates must have earned a diploma from a New Jersey high school or a bachelor’s degree from a New Jersey public or private institution meeting specific accreditation standards. The deduction applies to all salaries, wages, and other earnings received during those two years, with no income limit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for recent NJ graduates, reducing state tax burden for middle-income earners per bill's wage income deduction provision.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 1863: Provides a gross income tax deduction for veterinarian expenses.

This New Jersey bill (S 1863) allows taxpayers to deduct up to $2,500 in nonreimbursed veterinary expenses for their pets from their gross income each year. It applies to costs for examinations and care of domesticated animals maintained in or near the taxpayer’s household, provided the veterinarian is licensed in New Jersey. The deduction is limited to expenses not covered by insurance or other reimbursement. The bill takes effect immediately upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for vet expenses, reducing taxable income - direct tax relief measure under Budget & Taxes topic.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 579: Provides gross income tax deduction to eligible educators and paraprofessionals for expense of classroom supplies.

This bill would allow New Jersey teachers and school aides to deduct up to $250 annually from their state taxes for unreimbursed classroom supply expenses. Eligible educators include K-12 teachers, counselors, principals, and paraprofessionals (like classroom aides) who work at least 900 hours yearly in public or private New Jersey schools. The deduction covers books, computers, software, and teaching materials, but excludes health/physical education supplies. It mirrors a federal tax provision and applies to taxable years starting after enactment. The bill directly affects qualifying school staff by reducing their state tax burden for essential classroom costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction ($250) for educators' classroom expenses, offering direct tax relief to middle-income public school workers, aligning with 'tax relief for middle/lower income' indicator.90% confidence ✓ EducationSupports EducationAllows tax deduction for educator classroom supplies, reducing out-of-pocket costs for K-12 teachers and staff, directly supporting educators' financial needs.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax deduction for unreimbursed classroom supplies, reducing financial burden on educators and aligning with worker support in employment standards.85% confidence

Sub-Topics Income Tax K-12 Education Teachers

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in committee · New Jersey · Senate Jan 13, 2026

S 1781: Increases amount of gross income tax exclusion for gains from sales of principle residences.

This bill (S 1781) increases New Jersey's exclusion for capital gains tax on sales of primary residences. It doubles the maximum exclusion amount: from $250,000 to $500,000 for single homeowners, and from $500,000 to $1,000,000 for married couples filing jointly. To qualify, homeowners must have owned and lived in the home as their primary residence for at least two of the past five years. The change directly affects New Jersey residents selling their primary homes who meet the ownership and use requirements. The bill amends existing law (P.L.1998, c.3) to reflect these updated exclusion limits.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exclusion for primary home sales, reducing capital gains tax liability for homeowners, aligning with tax relief support indicators.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 2860: Establishes Artificial Intelligence Apprenticeship Program and artificial intelligence apprenticeship tax credit program.

This bill establishes a new Artificial Intelligence Apprenticeship Program within New Jersey's Department of Labor to create training opportunities in AI technology, data analytics, and automation. It also creates a tax credit for employers hiring qualified AI apprentices, allowing them to claim up to $5,000 per apprentice (half of wages paid, capped at $5,000) for taxable years beginning in 2026. To qualify, employers must hire unskilled or semi-skilled apprentices for at least 20 weeks in a program meeting state and federal standards, covering roles like generative AI development. The program will partner with AI companies and educational institutions to design training pathways. The tax credit applies to both corporate business tax and gross income tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit program for employers hiring AI apprentices, providing direct tax relief as a fiscal incentive under Budget & Taxes policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates AI apprenticeship program and tax credit for training workers, advancing employment opportunities and workforce development within labor-focused Department of Labor.90% confidence ✓ TechnologySupports TechnologyBill establishes AI apprenticeship program and tax credit to fund AI workforce development, directly advancing technology training and industry adoption.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Apprenticeships Artificial Intelligence

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passed · New Jersey · Senate Jun 18, 2026

S 1759: Increases amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments; increases property tax credit option for certain individuals.

S 1759 increases the portion of rent that counts as property taxes for tax deduction purposes from 18% to 30% for renters whose rental unit is their primary residence. It also raises the maximum property tax credit amount from $50 to $250 for eligible taxpayers, including those aged 65 or older, or who are blind or disabled and not subject to New Jersey income tax. These changes apply to both homeowners and renters who qualify for these tax benefits under New Jersey law. The bill modifies specific definitions and credit thresholds in the state's tax code without altering eligibility criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases rent deduction percentage (18%→30%) and property tax credit ($50→$250) for eligible renters and vulnerable groups, providing direct tax relief under NJ law.95% confidence ✓ HousingSupports HousingIncreases tax deductions for renters (30% rent as property tax) and raises credits ($250 max) for vulnerable groups, directly lowering housing costs for qualifying renters, aligning with affordable housing goals.85% confidence

Sub-Topics Income Tax Property Tax Tax Credits Property Taxes Renters

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