This bill creates a $1,500 nonrefundable state income tax credit for New Jersey residents who meet specific criteria. To qualify, a taxpayer must have graduated from both a New Jersey high school and a New Jersey institution of higher education (public or private nonprofit) with a 3.5+ GPA, then work full-time (25+ hours/week) for a New Jersey-based employer within two years of graduation. The credit applies for the first five consecutive tax years of eligible employment, but cannot reduce tax liability below zero. It directly targets recent NJ college graduates seeking to remain in-state for employment, aiming to incentivize retention in the state's workforce.
S 659 provides a 35% tax credit for New Jersey taxpayers who install solar energy systems on their property, directly affecting residential homeowners, apartment building owners, and businesses. The credit covers 35% of qualified solar equipment costs (purchase, installation, or long-term leases), with annual limits of $5,000 for single-family homes, $350 per apartment unit, and $500,000 for commercial or industrial properties. Taxpayers must apply for certification from the Environmental Protection Commissioner, and unused credits can be carried forward for up to seven years. The total annual tax credit funding is capped at $25 million across all eligible properties.
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.
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.
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.
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.
This bill adjusts New Jersey's income tax rates for married couples filing jointly (and similar filers like heads of household), primarily by increasing the tax-free threshold. Starting in 2022, the lowest tax bracket applies to taxable income under $40,000 (up from $20,000), meaning married couples earning under this amount pay 1.4% on all income instead of a phased rate. The bill also updates rates for higher income brackets but focuses on reducing the tax burden for middle-income married couples, which is the basis for its "Marriage Penalty Elimination" designation.
This bill creates a refundable tax credit for New Jersey renters who use their rental unit as their primary residence. It replaces an existing tax deduction with a direct credit equal to 30% of rent paid for residential rental property (capped at $15,000 annually), effectively reducing the renter's tax bill dollar-for-dollar. The credit applies to tenants in standard rental units (not condos, co-ops, or manufactured homes in parks), targeting those whose rent includes property taxes. This policy directly benefits low-to-moderate income renters by providing immediate tax relief instead of a future deduction.
This bill eliminates state income tax on all New Jersey Lottery winnings, removing the current $10,000 threshold that previously made larger prizes taxable. It directly affects New Jersey residents who win lottery prizes, ensuring all winnings - regardless of amount - are excluded from gross income tax calculations. The bill also eliminates the requirement for the New Jersey State Lottery to withhold 3% tax from prize payments, which currently applies to winnings over $10,000. This changes the tax treatment from a partial exclusion to a full exemption for all lottery prizes. The policy change would apply to all taxable years beginning after the bill's enactment date.
This New Jersey bill (S 1612) provides a 10% tax credit against corporation business tax and gross income tax for farmers who purchase qualified farming equipment. It directly affects New Jersey farmers engaged in eligible operations - such as growing crops, raising livestock, or aquaculture - by allowing them to reduce their tax liability by up to 10% of equipment costs. To claim the credit, farmers must obtain certification from the New Jersey Department of Agriculture confirming their operation qualifies and equipment was acquired, with strict deadlines for processing. The credit cannot exceed 25% of a farmer’s tax liability for the year and may be carried forward if unused.
