Budget & Taxes (Income Tax)

in committee · New Jersey · Senate Jan 13, 2026

S 739: "New Jersey Loves New Jersey Farmers Act"; provides corporation business tax credits and gross income tax credits to commercial farm operators for price loss.

S 739, the "New Jersey Loves New Jersey Farmers Act," provides tax credits to New Jersey commercial farm operators who grow crops for human consumption (like fruits and vegetables) but not livestock feed. It allows these farms to claim credits against corporation business tax or gross income tax equal to certified "price loss" (revenue loss from falling crop prices), verified by the State Agriculture Secretary. The credits are limited to 50% of tax liability per year and can be carried forward for up to seven years if not fully used. This directly benefits farm businesses experiencing price declines, offering financial relief tied to verified market losses.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits against corporation/business tax, reducing farm operators' tax liability for price losses, directly advancing tax relief under state tax system.95% confidence

Sub-Topics Business Taxes Income Tax Tags Agriculture

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in committee · New Jersey · Senate Jun 11, 2026

S 1059: Allows corporation business tax and gross income tax credits to businesses paying a salary differential to National Guard members or reservists on active duty.

This bill creates tax credits for New Jersey businesses that pay a salary differential to employees serving in the National Guard or reserve forces during active duty. Specifically, businesses can claim a credit equal to the amount they pay to make up the difference between an employee's regular salary and their military pay during active duty. The credit applies to both corporation business tax and gross income tax, but cannot exceed 50% of the business's tax liability for that period. It directly affects New Jersey employers with qualifying National Guard or reserve members who receive military orders for active duty.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits (reducing business tax liability) for supporting National Guard/reservists, aligning with tax relief indicator under Budget & Taxes.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credits to cover salary differentials for National Guard/reservist employees during active duty, protecting their income and advancing wage security for military-affiliated workers.95% confidence ✓ VeteransSupports VeteransProvides tax credits for businesses compensating National Guard/reservist employees during active duty, directly supporting veteran employment stability and financial security.95% confidence

Sub-Topics Business Taxes Income Tax National Guard & Reserve

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in committee · New Jersey · Senate Jan 13, 2026

S 2347: Provides gross income tax exclusion for military compensation paid to State residents for out-of-State military service.

This bill (S 2347) excludes certain military compensation from New Jersey's gross income tax for residents who serve outside the state. It directly affects New Jersey-domiciled service members stationed or deployed out-of-state for at least six months during a taxable year. The exclusion covers military pay, mustering-out payments, and housing/subsistence allowances received while serving in the U.S. Armed Forces or New Jersey National Guard on State active duty. The policy change means eligible service members will not pay New Jersey income tax on these specific military benefits. The bill applies to taxable years beginning after its enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes military compensation from NJ gross income tax, providing tax relief to service members - directly aligns with tax relief indicator for support stance95% confidence ✓ VeteransSupports VeteransExcludes military compensation from NJ tax for residents serving out-of-state, providing direct financial benefit to veterans through tax relief on military pay and allowances.95% confidence

Sub-Topics Income Tax National Guard & Reserve

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in committee · New Jersey · Senate Jan 13, 2026

S 2521: Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

This bill allows New Jersey residents to deduct the full amount of state property taxes paid on their primary home from their state income tax bill, removing a previous $15,000 annual cap. It applies to homeowners and renters of residential properties, with income-based limits: taxpayers earning over $150,000 but under $250,000 face a $5,000 deduction limit, while higher earners ($250,000+) are ineligible unless they qualify as elderly or disabled. The deduction covers property taxes paid during the calendar year and aligns with existing tax code provisions for primary residences. The bill amends New Jersey's Gross Income Tax Act to implement this change, effective for the 2026 tax year.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves $15k cap on property tax deductions, providing tax relief for homeowners (especially middle-income), aligning with tax relief indicators for Budget & Taxes.95% confidence

Sub-Topics Income Tax Property Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 1347: Expands eligibility for gross income tax credit to family caregivers of certain armed service members with physical disabilities.

This bill expands New Jersey's tax credit for family caregivers of military veterans with disabilities. It allows caregivers to claim a refundable tax credit equal to 100% of a service member's federal disability compensation (up to $675) if the service member has a disability from any military service - not just post-9/11 conflicts - and meets other existing requirements (e.g., honorable discharge, VA disability rating, six-month residency with caregiver in NJ). The credit applies to caregivers with household income under $100,000 (joint filers) or $50,000 (single/separate filers). It directly affects family caregivers of qualifying veterans who provide care, making the credit accessible to a broader group of service members.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands refundable tax credit for caregivers, providing direct tax relief to lower-income families supporting disabled veterans, aligning with tax relief indicators.95% confidence ✓ VeteransSupports VeteransExpands tax credit for caregivers of veterans with disabilities, increasing financial support beyond previous restrictions (e.g., post-9/11 only).95% confidence

Sub-Topics Income Tax Tax Credits Veteran Benefits

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in committee · New Jersey · Senate Jan 13, 2026

S 1890: Allows gross income tax deduction for surviving spouses of certain veterans.

This bill adds a $3,000 annual deduction to New Jersey's gross income tax for surviving spouses of veterans who meet specific service criteria. It directly affects widows and widowers whose spouses died while on active duty, were honorably discharged, or were released under honorable circumstances from military service. The deduction is included in the tax code under existing personal exemption rules (N.J.S.54A:3-1(b)(8)), extending an existing $6,000 veteran exemption to surviving spouses. Eligibility ends if the surviving spouse remarries, and the deduction applies to taxable years beginning after the bill's enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdds $3,000 annual tax deduction for surviving spouses of veterans, reducing taxable income and providing targeted tax relief.95% confidence ✓ VeteransSupports VeteransExtends tax deduction to surviving spouses of veterans meeting service criteria, expanding financial benefits for veteran families under existing exemption rules.95% confidence

Sub-Topics Income Tax Military Families

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in committee · New Jersey · Senate Jan 13, 2026

S 1192: Excludes from gross income tax certain compensation earned by college athletes for use of name, image, or likeness.

This bill makes compensation college athletes earn for using their name, image, or likeness tax-free in New Jersey. It applies only to athletes at four-year colleges or universities in New Jersey, excluding up to $100,000 annually from state income tax. The exclusion specifically covers earnings permitted under New Jersey’s existing "Fair Play Act," which allows athletes to profit from their name, image, or likeness. It does not create new compensation but changes the tax treatment of existing NIL (name, image, likeness) earnings.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes athlete NIL compensation from NJ income tax, providing tax relief for student-athletes, aligning with support indicators for tax relief.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 531: Establishes a gross income tax credit for attendance at New Jersey county colleges.

This bill creates a New Jersey state tax credit to help offset college costs. It provides a $750 credit for full-time tuition and maintenance payments (for the taxpayer or a dependent under 22) and a $375 credit for part-time attendance (with at least six credits per semester). The credit is applied against the taxpayer's gross income tax liability, directly benefiting families or individuals paying for New Jersey county college education. It aims to make community college more affordable by reducing the tax burden associated with these costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing gross income tax liability for college attendees, offering direct tax relief to middle/lower-income families.95% confidence ✓ EducationSupports EducationBill provides tax credits to offset community college costs, directly increasing affordability and access to higher education. Explicitly advances educational access through financial support for students.90% confidence

Sub-Topics Income Tax Tax Credits Higher Education

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in committee · New Jersey · Senate Jan 13, 2026

S 1101: Establishes New Jersey Homebuyer Tax Credit Program under gross income tax for certain home purchases during qualified periods by first-time homebuyers.

This bill creates a New Jersey tax credit for first-time homebuyers purchasing eligible homes during specific periods. It provides a credit equal to 5% of the home price (up to $15,000) for homes used as a principal residence for 36 consecutive months. The program has a total funding cap of $100 million, allocated across four terms with separate limits for new homes and previously occupied homes. The credit is applied over three tax years, and applicants must pre-qualify through the state director's office before purchase.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit (5% up to $15k) for first-time homebuyers, reducing tax burden and allocating $100M state funds for housing affordability.95% confidence ✓ HousingSupports HousingBill creates a $100M tax credit program (5% up to $15k) for first-time homebuyers, directly increasing affordable housing access through state-funded financial assistance.95% confidence

Sub-Topics Income Tax Procurement Tax Credits Affordable Housing Homeownership

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in committee · New Jersey · Senate Jan 13, 2026

S 2413: Indexes various thresholds and qualifications under New Jersey gross income tax for inflation.

This bill automatically adjusts New Jersey's income tax thresholds and qualification limits for inflation starting in 2022. It affects taxpayers who qualify for specific deductions or exemptions, such as those using education savings accounts, paying student loans under state programs, or claiming tuition deductions at in-state colleges. The key mechanism requires the state tax director to annually update these thresholds using the Consumer Price Index (CPI-U), rounding to the nearest $5. This ensures the income limits for these tax benefits grow with the cost of living, without requiring new legislation each year.

Topics ✓ Budget & TaxesSupports Budget & TaxesAutomatically adjusts tax thresholds using CPI to prevent bracket creep, providing tax relief for middle-income taxpayers affected by inflation.95% confidence ✓ EducationSupports EducationAdjusts tax thresholds for inflation to maintain education-related deductions (e.g., tuition savings, student loans), preserving access to educational funding benefits without erosion from inflation.85% confidence

Sub-Topics Income Tax Higher Education

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