This bill allows businesses in New Jersey to receive tax credits if they hire adults who have been released from incarceration for nonviolent crimes. The credits apply to both corporation business taxes and gross income taxes, offering a benefit equal to 15 percent of wages paid to each eligible employee, up to a maximum of $900 per person. To qualify, the offenders must not have committed violent acts or specific serious offenses, and the tax savings are limited to 50 percent of the total tax owed for the year. Any unused portion of the credit can be carried forward for up to seven years, and the law applies to wages paid after the bill is enacted.
This bill proposes to increase the New Jersey earned income tax credit from 40 percent to 50 percent of the federal earned income tax credit amount, effective for tax years beginning in 2026. The change directly affects New Jersey residents who qualify for the federal earned income tax credit, allowing them to receive a larger refundable state tax credit based on their federal eligibility. By amending the state tax code, the legislation ensures that eligible working individuals and families will calculate their state tax benefit using the new higher percentage.
This New Jersey bill allows taxpayers to deduct charitable contributions made to nonprofit organizations that receive state funds or economic development subsidies. The deduction is limited to $10,000 for married couples filing jointly and heads of household, and $5,000 for single filers and others. Eligible nonprofits are defined as organizations that do not operate for private profit and are not part of any government, while the term "economic development subsidy" includes various forms of financial assistance like grants and loans provided to businesses. The law applies to contributions made in taxable years beginning on or after the date the bill is enacted.
This bill creates a New Jersey gross income tax credit for volunteer first responders who pay for child care services. To qualify, a volunteer firefighter or member of an emergency, ambulance, or rescue squad must complete at least 150 hours of official work or training in a tax year. Eligible taxpayers can claim a credit equal to 50 percent of their child care expenses, with a maximum benefit of $5,000 per year. The legislation requires individuals to submit documentation proving both their volunteer service hours and the costs incurred for care.
This New Jersey Assembly Resolution urges the President and Congress to exempt Social Security benefits from federal income tax. The resolution highlights that while many states do not tax these benefits, federal law currently allows taxation of up to 85 percent of benefits for higher-income recipients. It requests that federal legislation be introduced to remove this tax burden entirely. The resolution is a formal request to the federal government and does not directly change any laws within New Jersey.
This bill amends New Jersey tax law to exclude certain retirement savings plan contributions, withdrawals, and rollovers from gross income. It directly affects individuals who participate in qualified retirement accounts by ensuring these specific financial activities are not counted as taxable income. The provision aligns the state's definition of gross income with federal rules regarding retirement savings, simplifying tax treatment for these transactions. By removing these items from taxable income, the bill reduces the amount of tax residents owe on their retirement-related financial moves.
This New Jersey bill proposes to exclude compensation earned by college athletes for the use of their name, image, or likeness from state gross income taxes. It directly affects student-athletes enrolled at four-year universities located within the state who earn money from these rights while participating in intercollegiate sports. Under the legislation, any income a taxpayer receives for such purposes during a taxable year would not be counted as taxable income. The law would apply retroactively to taxable years beginning after the date of enactment, allowing athletes to keep this specific earnings stream free from state taxation.
This bill allows New Jersey taxpayers to deduct the cost of functional improvements and repairs to their primary residence from their gross income. It applies to homeowners and renters, covering expenses that materially improve a home's operating condition or prolong its useful life, as well as costs to keep the home in efficient working order. The deduction excludes aesthetic remodels or changes that adapt a home for new uses, and married couples filing separately can each claim half of the shared expense. The measure takes effect for taxable years beginning after the bill is enacted.
This bill allows individuals to move funds from their New Jersey Better Educational Savings Trust (NJBEST) accounts directly into Roth Individual Retirement Accounts (IRAs) without paying state income tax on those distributions. The legislation amends existing state laws to classify these transfers as qualified withdrawals, meaning they are treated the same as other tax-advantaged educational savings distributions. By explicitly excluding these Roth IRA rollovers from gross income tax, the bill provides an additional flexibility option for account holders who wish to consolidate their educational savings with retirement funds. The changes directly affect NJBEST account holders who may want to use their educational savings for retirement planning purposes.
This bill creates the ReadyReturn program in New Jersey, which allows the Division of Taxation to prepare initial income tax filings for low-income residents who typically do not file because their earnings fall below the required threshold. The program aims to help these individuals access the Earned Income Tax Credit and other benefits by removing barriers related to form access, document delivery, and filing complexity. Additionally, the legislation requires several state agencies to use existing tax data to streamline identification and enrollment for various social services programs, reducing the burden on applicants who must currently complete separate applications. The bill also includes an appropriation to fund these initiatives, with the goal of increasing tax compliance and improving access to essential safety net resources.
