Budget & Taxes in New Jersey

in committee · New Jersey · General Assembly Jun 8, 2026

A 5230: Allows gross income tax deduction for sales and use tax and societal benefits charges paid on electric and gas utility bills.

This bill allows New Jersey taxpayers to deduct sales and use taxes and societal benefits charges paid on their electricity and natural gas bills for their primary homes from their gross income. The legislation directly affects individuals who pay utility taxes and aims to reduce their overall state income tax liability by treating these specific utility costs as deductible expenses. By amending existing tax statutes, the bill creates a new section that explicitly permits this deduction for the taxable year in which the taxes are paid. This change does not alter how utility companies charge for services or how taxes are collected, but rather provides a financial benefit to homeowners through the state tax code.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax Sales Tax

in committee · New Jersey · Senate Jun 22, 2026

S 4502: Authorizes State acquisition of certain real property to expand affordable, rapid, and transitional housing options; makes appropriation.

This bill authorizes the State of New Jersey to use eminent domain to acquire private real property in the state's five most populous cities to address a severe housing shortage. The acquired land will be used to build affordable, rapid-rehousing, and transitional housing facilities specifically designed to assist formerly incarcerated individuals, families displaced by natural disasters, and those currently experiencing homelessness. The legislation also includes an appropriation of funds to support these construction and operational efforts, aiming to provide stable living environments and necessary supportive services. By creating publicly owned housing hubs in major urban centers, the bill seeks to alleviate the strain on existing shelters and improve access to resources for vulnerable populations.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Appropriations Homelessness

signed · New Jersey · Senate Jul 30, 2026

S 4423: Appropriates $77,406,208 from constitutionally dedicated CBT revenues and various Green Acres funds to DEP for local government open space acquisition and park development projects, and for certain administrative expenses.

This bill allocates approximately $77.4 million from dedicated tax revenues and Green Acres funds to the Department of Environmental Protection to support local government projects. The funding is divided between acquiring land for conservation and developing existing parks, with specific amounts designated for planning incentives, standard projects, and areas with high population density. Local municipalities and counties that meet certain population criteria are eligible to receive grants or loans to help them purchase or improve recreational spaces. Any remaining funds after the listed projects are funded may be used for additional approved initiatives with further committee approval.

Topics ✓ Budget & Taxes ✓ Environment

Sub-Topics Conservation Parks & Recreation

passed · New Jersey · Senate Jun 30, 2026

S 4495: Allows use of Green Acres funds to fully fund certain projects on State-owned land by certain nonprofit organizations.

This bill allows qualifying nonprofit organizations to receive full funding from the Green Acres Fund for projects on State-owned land without being required to provide matching funds. It changes existing rules that typically mandate nonprofits contribute their own money alongside state grants for development, repairs, or improvements of public property. The legislation specifically targets tax-exempt nonprofits working on facilities used for education, research, or recreation to help maintain and upgrade these sites. By removing the matching fund requirement, the bill aims to improve the repair and operation of State lands managed by these organizations.

Topics ✓ Budget & Taxes ✓ Environment

in committee · New Jersey · General Assembly Jun 4, 2026

A 5205: Establishes certain valuation and reporting mechanisms related to school district liabilities for certain accumulated unused leave.

This bill establishes new financial reserve accounts for New Jersey school districts to manage liabilities related to accumulated unused leave. It allows districts to set aside funds specifically for paying out sick and vacation leave when employees retire or leave their jobs, using either annual budgets or unspent funds from the current year. The legislation also creates three other reserve accounts for emergency expenses, debt repayment, and federal impact aid, while updating rules on how districts can transfer unspent money to these reserves. Ultimately, the bill provides a structured way for school boards to save money in advance to cover future employee leave costs without relying solely on current operating budgets.

Topics ✓ Budget & Taxes ✓ Education

in committee · New Jersey · Senate Jun 8, 2026

S 4421: Provides 10-year sales and use tax exemption for sales of materials, supplies, and services for certain energy infrastructure projects.

This bill creates a ten-year exemption from New Jersey sales and use taxes for materials, supplies, and services used exclusively in specific energy infrastructure projects. The measure directly affects contractors, subcontractors, and repairmen working on new energy generation facilities, major improvements to existing ones, or new and upgraded energy storage systems. By waiving these taxes for the duration of the project, the legislation aims to reduce costs for the construction and enhancement of state energy assets. The tax exemption begins the year after the law is enacted and runs through the end of the tenth year following that start date.

Topics ✗ Budget & Taxes ✓ Energy

Sub-Topics Sales Tax Tax Incentives Energy Storage

in committee · New Jersey · General Assembly Jun 23, 2026

A 5308: Increases gross income tax deduction available to veterans from $6,000 to $9,000 and indexes deduction for inflation.

This New Jersey bill increases the state gross income tax deduction for honorably discharged veterans from $6,000 to $9,000. The change applies to veterans who served in the U.S. Armed Forces, reserve components, or the New Jersey National Guard and affects their calculation of state tax liability starting with the 2026 tax year. Additionally, the bill mandates that the $9,000 deduction amount be adjusted annually for inflation beginning in 2027 based on changes in the Chained Consumer Price Index. This adjustment ensures the tax benefit maintains its value over time without requiring new legislation each year.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Income Tax Veteran Benefits Veteran Education Veteran Healthcare

passed · New Jersey · Senate Jun 18, 2026

S 4425: Appropriates $64,787,327 from constitutionally dedicated CBT revenues and other farmland preservation funds to State Agriculture Development Committee for farmland preservation purposes.

This bill appropriates approximately $64.8 million from various constitutionally dedicated funds to the State Agriculture Development Committee in New Jersey to support farmland preservation. The money will be used to purchase development easements or full ownership of farmland, provide grants to counties and municipalities for up to 80 percent of acquisition costs, and offer grants to non-profit organizations for up to 50 percent of such costs. Additionally, the legislation allocates $2.7 million specifically for stewardship activities like soil and water conservation and deer fencing on preserved lands. Any farmland bought with these funds must be resold or leased with agricultural restrictions to ensure it remains used for farming purposes.

Topics ✓ Budget & Taxes ✓ Environment

Sub-Topics Conservation

passed · New Jersey · Senate Jun 18, 2026

S 4426: Appropriates $10,000,000 from constitutionally dedicated CBT revenues to State Agriculture Development Committee for municipal planning incentive grants for farmland preservation purposes.

This bill appropriates $10 million from constitutionally dedicated corporation business tax revenues to the State Agriculture Development Committee for farmland preservation efforts. The funds are designated to provide municipal planning incentive grants to a specific list of 46 townships and boroughs across New Jersey counties. Each eligible municipality may receive a maximum grant of $2 million to support local planning initiatives aimed at preserving farmland. The legislation takes effect immediately and operates under existing state laws governing the "Preserve New Jersey" program.

Topics ✓ Budget & Taxes ✓ Environment

Sub-Topics Business Taxes Conservation

passed both · New Jersey · Senate Jun 30, 2026

S 4514: Concerns certain motor vehicle related funding to certain municipalities.

This bill allows large, fast-growing New Jersey municipalities to collect and use additional taxes to fund local transportation services. Specifically, it permits cities with over 200,000 residents that grew by more than 15 percent between 2010 and 2020 to use mass transit parking tax revenue for transit operations and administrative costs. The legislation also changes how parking fines are handled in these areas, directing a larger share of penalty fees to municipal courts and giving cities full control over how to spend the remaining funds. Furthermore, it lets these same cities impose a rental car tax regardless of whether they have a major airport and removes restrictions limiting where within the city the tax can be collected.

Topics ✓ Budget & Taxes ✓ Transportation

Sub-Topics Revenue Airports Public Transit

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