Budget & Taxes (Procurement) in New Jersey

in committee · New Jersey · Senate Feb 19, 2026

S 3558: "Made in New Jersey Tax Credit Act"; provides CBT tax credits to taxpayers that purchase "New Jersey made" products.

S 3558, the "Made in New Jersey Tax Credit Act," provides businesses a tax credit equal to 25% of the cost of purchasing "New Jersey made" products used in their retail sales or manufacturing. It directly affects New Jersey corporations paying the corporation business tax (CBT) that buy qualifying products for their operations. To qualify, businesses must demonstrate that most of their product purchases could have been substituted with New Jersey-made alternatives, excluding costs for products that couldn’t be replaced. The credit can be carried forward for up to seven years if not fully used in the current tax year. A "New Jersey made" product is defined as one with all or virtually all significant parts, processing, and labor originating in New Jersey, containing negligible out-of-state content.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Procurement Tax Credits

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

A 4320: Establishes grant program to provide thermal imaging and radio equipment to certain fire departments.

This bill establishes a state grant program to provide thermal imaging body cameras, thermal imaging masks, and radio repeaters to fire departments serving municipalities with 100,000 or more residents. Qualifying fire departments in cities with 100,000-299,000 residents receive $150,000 every three years (divided equally among departments), while those in cities of 300,000+ residents receive the same amount. The grant covers purchasing or reimbursing costs for the specified equipment, which enhances firefighter visibility through smoke and improves inter-department communication. The Division of Fire Safety must review the program every five years to ensure departments use updated technology and determine if the program should continue.

Topics ✓ Budget & Taxes

Sub-Topics Procurement

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

A 3565: Provides corporation business tax credits and gross income tax credits for purchase of certain compressed natural gas vehicles.

This bill provides tax credits to New Jersey businesses and individuals for purchasing compressed natural gas (CNG) vehicles. Businesses can claim credits up to $3,500 (2023), $2,500 (2024), or $1,500 (2025) for standard CNG vehicles, and up to $25,000 (2023), $15,000 (2024), or $7,500 (2025) for Class 8 CNG trucks. Individuals may claim credits up to $3,500 (2023), $2,500 (2024), or $1,500 (2025) for personal CNG vehicles under the gross income tax system. To qualify, purchasers must obtain certification from the Environmental Protection Commissioner confirming the vehicle’s CNG use, and unused credits can be carried forward for up to seven years.

Topics ✓ Budget & Taxes ✗ Energy ✓ Environment ✓ Transportation

Sub-Topics Business Taxes Income Tax Procurement Oil & Gas Electric Vehicles

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

A 3495: Creates Office of Nonprofit Ombudsperson in Department of Treasury; appropriates $329,000.

Bill A3495 creates an independent Office of Nonprofit Ombudsperson within New Jersey's Department of Treasury to advocate for and assist nonprofit organizations (defined as IRS 501(c)(3) entities) interacting with state agencies. The Ombudsperson will monitor state agencies' compliance with a public information portal, provide technical assistance, investigate complaints, and develop procurement practices to improve nonprofit access to resources. The office requires $329,000 in funding from the General Fund to operate, including maintaining a dedicated website and reporting annually to the Governor and Legislature. This bill directly affects nonprofits seeking state services and state agencies required to maintain accessible online resource portals.

Topics ✓ Budget & Taxes

Sub-Topics Procurement State Budget

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

A 3681: Exempts sales of passenger automobiles to honorably discharged veterans with service-connected disability from sales and use tax.

This bill exempts sales and use tax on passenger automobiles purchased by veterans who were honorably discharged and have a disability related to their military service, as confirmed by the U.S. Department of Veterans Affairs. It defines "passenger automobile" as any vehicle designed for passenger transport (excluding buses), and "service-connected disability" as an injury or illness incurred during active duty. The exemption applies to sales occurring two months after the bill's enactment, directly benefiting eligible veterans purchasing new or used cars. The law modifies New Jersey’s existing Sales and Use Tax Act to provide this tax relief.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Procurement Sales Tax Veteran Healthcare

in committee · New Jersey · Senate Feb 19, 2026

S 3525: Requires boards of education, municipalities, counties, and certain other local contracting units to determine and utilize cost-saving practices when procuring goods and services.

This bill requires school boards, municipalities, counties, and other local government units that purchase goods or services to identify and implement cost-saving practices in their procurement processes. It amends New Jersey's existing procurement laws to mandate that these entities actively evaluate and adopt methods to reduce expenses when making purchases. The requirement applies to all contracts for goods or services, aiming to improve fiscal efficiency across local government operations. The bill does not specify particular cost-saving methods but obligates entities to determine and utilize such practices.

Topics ✓ Budget & Taxes

Sub-Topics Government Spending Procurement

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

A 2865: Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

This New Jersey bill (A2865) allows resident homeowners to deduct the full cost of purchasing and installing a qualifying whole-house backup generator at their primary residence from their gross income tax. The generator must be permanently connected, run on natural gas or propane, operate only during power outages, and comply with all state and local installation regulations. It directly affects New Jersey homeowners who own a primary residence and install such a generator, providing a tax benefit for these expenses. The deduction applies to the year the generator is purchased and installed, and the bill takes immediate effect.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax Procurement

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

A 3563: Provides sales and use tax exemption for sales of fuel cell devices and systems and certain tangible personal property powered by fuel cells.

This bill exempts sales and use taxes for fuel cell devices, systems, and related tangible personal property in New Jersey. It directly affects businesses and consumers purchasing fuel cells that generate power through non-combustive electrochemical processes (converting fuel and oxidant into electricity). The key mechanism creates a new tax exemption for sales of fuel cell-powered systems designed to provide heating, cooling, or electrical power, and extends existing exemptions for fuel cell-related natural gas use. The exemption applies to all sales, use, or billing periods starting four months after enactment, aligning with New Jersey’s existing tax code for energy-efficient technologies.

Topics ✓ Budget & Taxes ✓ Energy ✓ Environment

Sub-Topics Procurement Sales Tax Tax Incentives Oil & Gas

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

A 388: Provides gross income tax deduction for expenses incurred by disabled veterans for service animals.

This bill allows New Jersey disabled veterans with service-connected disabilities to deduct up to $5,000 annually from their gross income for service animal expenses. Eligible costs include purchasing, training, and maintaining the animal (such as food, grooming, and veterinary care), provided these expenses aren't already deductible as medical costs under existing law. To claim the deduction, veterans must submit proof of eligibility to the Division of Taxation. The policy applies to tax years beginning January 1, 2024, and defines "disabled veteran" as a resident honorably discharged from military service with a VA-recognized disability, while "service animal" follows federal ADA standards.

Topics ✓ Budget & Taxes ✓ Healthcare ✓ Veterans

Sub-Topics Income Tax Procurement Veteran Benefits Veteran Education Veteran Healthcare

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

A 3933: Provides corporation business tax credits and gross income tax credits for purchase of certain hydrogen fuel cell vehicles.

This bill provides tax credits for businesses purchasing hydrogen fuel cell vehicles for commercial use. Businesses can claim up to 25% of the vehicle cost (capped at $15,000) in 2023, decreasing to 8% ($5,000 cap) by 2025. To qualify, businesses must obtain certification from the Environmental Protection Commissioner confirming the vehicle meets specifications and is used exclusively for business operations. The credits apply against both New Jersey's corporation business tax and gross income tax.

Topics ✓ Budget & Taxes ✓ Energy ✓ Environment ✓ Transportation

Sub-Topics Business Taxes Income Tax Procurement Electric Vehicles Electric Vehicles

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