Budget & Taxes (Income Tax)

in committee · New Jersey · Senate Jan 13, 2026

S 243: Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

This bill increases New Jersey's Earned Income Tax Credit (EITC) benefit to 60% of the federal credit amount for qualifying residents, effective for taxable years beginning January 1, 2022. It directly affects low- and moderate-income New Jersey workers and families who qualify for the federal EITC but were previously receiving only 40% of that federal benefit through the state program. The change modifies existing law to raise the state credit percentage without altering eligibility rules, meaning residents must still claim the federal EITC first to access the enhanced state credit. The credit remains refundable, providing cash payments even if the recipient owes no state income tax. This policy change expands tax relief for working individuals and families already eligible under federal guidelines.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases state EITC benefit percentage from 40% to 60% for low/moderate-income residents, providing direct tax relief and strengthening state fiscal support for working families.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 3056: Provides for voluntary contributions by taxpayers on gross income tax returns to support NJ SHARES.

This bill creates a voluntary contribution option on New Jersey's gross income tax returns, allowing taxpayers to direct a portion of their refund or make an additional payment to the "NJ SHARES Fund." The fund supports NJ SHARES, Inc., a nonprofit organization that provides temporary energy bill assistance to New Jersey households facing short-term financial crises. To qualify, households must not be eligible for welfare or other income-based energy programs and must have a history of paying utility bills on time. Funds collected through this mechanism will be distributed annually to help households cover urgent energy costs during temporary financial hardships.

Topics ✓ Budget & TaxesSupports Budget & TaxesVoluntary tax contribution mechanism funds energy assistance program, advancing public service funding via tax system without mandatory increases.95% confidence ✓ EnergySupports EnergyBill provides temporary energy bill assistance to households, supporting affordability and access to energy services through voluntary tax contributions.95% confidence

Sub-Topics Income Tax

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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 2370: Indexes for inflation taxable income brackets under New Jersey gross income tax.

This bill would automatically adjust New Jersey's income tax brackets for inflation each year, using the Consumer Price Index. It directly affects all New Jersey residents who pay state income tax, particularly middle-income earners who would otherwise face higher taxes due to inflation without these adjustments. The bill does not change current tax rates but ensures income thresholds (like $150,000) rise with inflation to prevent "bracket creep," where inflation alone pushes taxpayers into higher tax brackets. This mechanism maintains the tax structure's original intent over time without requiring annual legislative action.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents 'bracket creep' for middle-income earners by automatically adjusting tax brackets for inflation, providing tax relief without changing rates.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 879: Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

S 879 allows New Jersey resident taxpayers to deduct the full cost of purchasing and installing a qualifying whole-house backup generator at their primary residence from their gross income. The generator must be natural gas or propane-powered, permanently connected to the home's electrical system, and only activate during power outages - meeting all state and local installation requirements. This deduction applies to the taxable year when the generator was bought and installed. The bill directly affects homeowners seeking to offset costs for backup power systems, with no other provisions or requirements beyond the tax deduction mechanism. (Bill: S 879, New Jersey Statutes Title 54A)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deduction for home generator costs, reducing taxable income for residents, aligning with tax relief indicators.90% confidence

Sub-Topics Income Tax Procurement

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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 May 18, 2026

S 580: Allows gross income tax deduction for certain student loan interest.

This bill (S 580) allows New Jersey taxpayers to deduct student loan interest from their state gross income tax, matching the federal deduction rules under Section 221 of the Internal Revenue Code. It directly affects New Jersey residents who pay interest on qualified student loans, with the deduction limited to the same amount allowed federally - currently up to $2,500 - and phased out based on income (e.g., eliminated for single filers earning $85,000+ or joint filers earning $170,000+). The state deduction automatically adjusts if federal rules change, and married couples must file jointly to claim it. The bill takes effect immediately for tax years starting after its enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief by allowing student loan interest deduction (matching federal rules), reducing taxable income for eligible middle-income taxpayers, directly advancing state tax policy.95% confidence

Sub-Topics Income Tax

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