Budget & Taxes (Income Tax)

in committee · New Jersey · Senate Jan 13, 2026

S 877: Provides temporary corporation business tax and gross income tax credits for insourcing business to New Jersey.

This bill provides temporary tax credits to New Jersey businesses that bring operations back to the state from outside the U.S. or from other U.S. states. Businesses qualify for a 35% credit on expenses for moving operations from outside the U.S. and a 25% credit for moving from within the U.S. but outside New Jersey, provided they maintain higher full-time employee counts in New Jersey than before the move. Credits expire for tax periods ending before 2025 and can be carried forward but are recaptured if employee numbers decrease in subsequent years. The credits apply to both corporate business taxes and individual gross income taxes, limited to 50% of tax liability, and require a written relocation plan.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to businesses for insourcing, reducing corporate tax liability and incentivizing economic activity within New Jersey's fiscal framework.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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in committee · New Jersey · Senate Jan 13, 2026

S 2294: Provides $3,000 gross income tax deduction for certain taxpayers providing home care for an elderly relative.

This New Jersey bill (S 2294) provides a $3,000 annual deduction from gross income for eligible taxpayers who care for elderly relatives. It directly affects low-to-moderate-income individuals: single filers earning under $35,000 or joint filers earning under $50,000 who provide over half the support for a relative aged 70+ living with them for at least six months each year. The deduction reduces taxable income, lowering the tax burden for qualifying caregivers. It applies to taxable years beginning after the bill's enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for low-income caregivers, reducing taxable income and tax burden per bill's explicit language.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 1875: Excludes military compensation of military personnel serving outside of this State from gross income tax.

S 1875 exempts specific military compensation from New Jersey's state income tax for New Jersey residents serving outside the state. It directly affects New Jersey-domiciled military personnel stationed in other states or overseas by excluding their active-duty pay, mustering-out payments, and housing allowances from taxable income. The bill amends New Jersey tax law (N.J.S.54A:6-7) to create this exclusion for service performed outside New Jersey. This policy change provides tax relief to military members who maintain New Jersey residency while serving in other locations.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts military compensation from NJ income tax, providing tax relief to service members, aligning with tax relief indicators under support stance.95% confidence ✓ VeteransSupports VeteransBill provides tax relief for NJ military personnel by exempting active-duty pay from state tax, directly advancing financial benefits for service members, aligning with veteran support policies.90% confidence

Sub-Topics Income Tax Military Families

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in committee · New Jersey · Senate Jan 13, 2026

S 2423: Exempts certain veterans from gross income tax.

This bill exempts qualifying veterans from New Jersey's state income tax. To qualify, veterans must have an honorable military discharge (from active duty in U.S. Armed Forces, reserve, or New Jersey National Guard in federal status) and earn $50,000 or less in gross income annually. The exemption applies to taxable years starting January 1 after the bill takes effect. It directly affects low-income veterans who meet the service and income criteria. The bill modifies New Jersey's Gross Income Tax Act to provide this specific tax relief.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts low-income veterans (under $50k income) from state income tax, providing direct tax relief to qualifying individuals per bill summary.90% confidence ✓ VeteransSupports VeteransExempts qualifying veterans from state income tax, providing direct financial relief to low-income veterans with honorable discharge.95% confidence

Sub-Topics Income Tax Veteran Benefits Veteran Education Veteran Employment

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in committee · New Jersey · Senate Jan 13, 2026

S 892: Provides CBT and gross income tax credits for replacement of abandoned commercial building with new commercial building.

This bill provides tax credits to commercial property owners who demolish abandoned buildings (over 100,000 sq ft) and replace them with new commercial structures on the same site. It offers a credit equal to 25% of redevelopment costs, capped at $500,000 per project, with a total state-wide limit of $5 million across all projects. To qualify, owners must apply to the Division of Taxation for certification showing demolition and construction occurred, and the credit can be carried forward if not fully used in one tax year. The credit applies against both the state's privilege tax and gross income tax, aiming to incentivize revitalizing vacant commercial properties.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits (25% of redevelopment costs) to commercial property owners, a direct tax relief mechanism impacting state tax policy and fiscal management.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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in committee · New Jersey · Senate Jan 13, 2026

S 2381: "New Jersey Disability Savings Act."

This bill creates the "New Jersey Disability Savings Act" to expand tax benefits for individuals with disabilities who use ABLE accounts. It provides a one-time $750 state match for new ABLE account deposits (for taxpayers earning $150,000 or less) and allows full state income tax deductions for all contributions to qualifying ABLE accounts. The program directly affects New Jersey residents with disabilities (or their families) who open ABLE accounts for disability-related expenses like housing, education, or medical costs. Funding for the matching grant depends on annual state appropriations, with the Department of Human Services handling allocation if funds are limited.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deductions and $750 state match for ABLE accounts, targeting lower-income disability savings - direct tax relief for middle/lower income.95% confidence ✓ HealthcareSupports HealthcareExpands tax benefits for ABLE accounts covering disability-related healthcare expenses, improving financial access to medical care for disabled residents.85% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 984: Provides gross income tax deduction for certain donated vehicles.

S 984 would allow New Jersey taxpayers to reduce their state income tax bill by deducting the fair market value of vehicles donated to qualifying law enforcement agencies (like police departments, sheriff's offices, or state police). Taxpayers donating vehicles worth over $500 must provide an independent appraisal, and the agency must give written confirmation of the donation details. The deduction applies to cars, boats, or planes (not dealer inventory) donated to eligible agencies, but cannot lower taxable income below zero. Agencies are not required to accept any donated vehicle under this bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for vehicle donations, reducing state income tax liability for donors, aligning with tax relief indicators.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 1133: Allows certain volunteer firefighters, rescue and first aid squad members to claim $5,000 income tax deduction.

S 1133 allows volunteer firefighters, first aid squad members, and rescue squad members in New Jersey to claim a $5,000 deduction from their state income tax if they meet specific service requirements. To qualify, firefighters must perform 60% of fire duty (e.g., 400 duty hours yearly with ≤50% for drills or 60% attendance at alarms/drills) and hold Firefighter I certification by January 1. First aid/rescue volunteers must complete 10% of rescue duty (400 hours yearly or 10% alarm attendance with 60% drill participation) and have approved training or EMT certification. The deduction applies only to those who volunteered full-time during the tax year and must be claimed with verification from their department.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $5,000 income tax deduction for volunteer emergency responders, offering direct tax relief to middle-income volunteers and aligning with fiscal responsibility through targeted tax policy.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 1362: Provides gross income tax credits to support development of New Jersey-based small business start-ups.

This bill provides tax credits to New Jersey-based small businesses during their first three years of operation. To qualify, a business must be registered in New Jersey, operate primarily within the state, have no more than 50 employees, and earn under $100,000 in net income during its first profitable year. The credit covers 75% of the business’s gross income tax in year one, 50% in year two, and 25% in year three. Businesses must obtain prior written authorization from the state tax director to claim the credit, proving the business isn’t related to other existing operations created solely for the credit benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits reducing small business tax burden for first three years, aligning with tax relief for economic development and business growth.95% confidence

Sub-Topics Business Taxes Income Tax Tags Small Business

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in committee · New Jersey · Senate Jan 13, 2026

S 1894: Allows farm operators to accelerate depreciation of certain expenditures under corporation business and gross income taxes.

This bill allows New Jersey farm operators to accelerate tax deductions for eligible business investments, matching current federal tax rules. Specifically, it enables farms to use federal Section 168 (bonus depreciation) and Section 179 (immediate expensing of capital costs) for state corporation business and gross income tax calculations. The policy directly affects farms primarily producing agricultural or horticultural commodities for sale, letting them deduct equipment and property costs faster than current state law permits. New Jersey had previously decoupled from these federal provisions, but this bill aligns state tax treatment with current federal standards.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows accelerated tax deductions for farm operators, reducing state tax burden via federal-aligned rules, directly advancing tax policy for agricultural businesses.95% confidence

Sub-Topics Business Taxes Income Tax Tags Agriculture

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