Budget & Taxes (Business Taxes)

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

A 2992: Excludes paraffin used in manufacture of candles from petroleum products gross receipts tax.

This bill exempts paraffin wax used specifically in candle manufacturing from New Jersey's petroleum products gross receipts tax. It directly affects New Jersey candle manufacturers, who previously paid tax on the paraffin input even when selling candles outside the state. The key mechanism is adding "paraffin used in the manufacture of candles" to the list of excluded items in the tax definition under Section 2 of P.L.1990, c.42. This change removes a tax burden that applied only to in-state candle production, as candles made elsewhere aren't subject to the tax when sold in New Jersey.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts candle manufacturers from tax burden, providing direct tax relief per bill's explicit intent to remove a specific tax on inputs.90% confidence

Sub-Topics Business Taxes

Track

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

A 1850: Sets flat gross income tax rate at 5.9 percent tax for all taxable income over $37,500 or $75,000, depending on filing status; exempts taxpayers with less income from gross income tax.

This bill (A 1850) sets a flat 5.9% tax rate on New Jersey gross income above $37,500 for single filers or $75,000 for married couples filing jointly, while exempting all income below those thresholds from taxation. It directly affects New Jersey residents whose taxable income exceeds these filing-status-specific limits. The key provision replaces previous tiered tax brackets with a single flat rate for income above the exemption thresholds. This change simplifies the tax structure for higher earners while maintaining tax exemption for lower-income taxpayers. The bill was introduced in 2026 and referred to the Assembly Commerce and Economic Development Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts low/middle income from tax while applying flat rate to higher income, providing tax relief for lower earners and simplifying tax structure per fiscal responsibility indicators.90% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

Track

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

A 2955: Provides employers with various tax incentives for hiring persons with disabilities under insurance premiums tax, corporation business tax and gross income tax.

This bill (A 2955) proposes tax incentives for New Jersey employers who hire individuals with disabilities. It would allow employers to claim credits against insurance premiums tax, corporation business tax, and gross income tax, including: 30% of the first $6,000 in wages for a new employee with a disability during their first year (20% in the second year), up to $600 for work-related transportation costs, and small business access improvement credits. The credits would apply only to employees certified by the Division of Vocational Rehabilitation Services as meeting the federal ADA definition of disability. The bill is pending before the Assembly Commerce and Economic Development Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides targeted tax credits (30% wage credit, $600 transport credit) against state taxes to incentivize hiring disabled workers, directly advancing tax incentive policy for fiscal responsibility.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax incentives to employers hiring disabled workers, directly advancing employment opportunities and strengthening inclusion under Labor & Employment standards.95% confidence

Sub-Topics Business Taxes Income Tax Tags People with Disabilities

Track

in committee · New Jersey · Senate Feb 12, 2026

S 3499: Exempts fuel used for operation of certain school buses from petroleum products gross receipts tax and motor fuel tax.

This bill exempts fuel used to operate school buses for transporting students to or from school or school activities from two New Jersey state taxes: the petroleum products gross receipts tax and the motor fuel tax. It directly affects school districts, religious or charitable organizations operating school buses, and contractors working with public agencies to provide school transportation. The law adds school buses to existing exemptions, allowing these entities to claim refunds for fuel taxes already paid on qualifying bus operations. This creates a concrete tax relief for school transportation costs without altering tax rates for other users.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts school bus fuel from state taxes, providing direct tax relief to public school districts and transportation providers, aligning with fiscal support for public services.95% confidence ✓ EducationSupports EducationExempts school bus fuel taxes, reducing operational costs for school transportation and freeing funds for educational purposes per bill's direct intent.95% confidence ✓ TransportationSupports TransportationExempts school bus fuel from taxes, reducing operational costs for transportation providers and aligning with funding support for public transit services.85% confidence

Sub-Topics Business Taxes School Transportation Public Transit Transportation Funding

Track

in committee · New Jersey · Senate Feb 12, 2026

S 3517: Allows corporation business tax credit for subcontracting work to NJ small businesses.

This bill allows New Jersey corporations to claim a 1% tax credit against their corporation business tax for payments made to NJ small businesses that perform subcontracted work within the state. It directly affects corporations doing business in New Jersey that subcontract work they were contracted to perform. To qualify, the subcontractor must be a New Jersey business with fewer than 50 employees and not affiliated with the paying corporation, and the work must be performed in New Jersey. The credit is limited to 50% of the tax liability and cannot reduce taxes below the statutory minimum.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 1% tax credit to corporations, reducing tax burden and supporting small business subcontractors per tax relief indicator.90% confidence

Sub-Topics Business Taxes Tax Credits

Track

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

A 276: Reduces gross income tax rates by ten percent over three years.

This bill reduces New Jersey's individual gross income tax rates by 10% across all income brackets, phased over three years. It directly affects all New Jersey individual taxpayers who file income tax returns (excluding charitable trusts and pension-related trusts). The key mechanism lowers the percentage rates applied to each income tier, as shown in the amended tax tables, without changing income thresholds. The reduction applies uniformly to all taxable income levels, starting from the effective date of the bill.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces tax rates uniformly across all income brackets, providing broad tax relief which aligns with fiscal responsibility and middle-income tax relief indicators.95% confidence

Sub-Topics Business Taxes Income Tax Pensions

Track

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

A 2660: Reduces CBT rate; retroactive to January 1, 2020.

This bill reduces New Jersey's Corporation Business Tax (CBT) rate for most corporations to 2.5% of taxable net income, effective retroactively from January 1, 2020. It directly affects corporations operating in New Jersey that pay the CBT, including S corporations and professional entities, by lowering their tax burden on net income. The key mechanism adjusts the tax rate calculation under Section 5 of the existing law, replacing higher historical rates (like 9% for older periods) with the new 2.5% rate for reports covering periods ending after December 31, 2019. This change will result in reduced tax payments or refunds for affected businesses for the 2020-2023 tax years.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces corporate tax rate from 9% to 2.5%, lowering tax burden for corporations. Direct tax policy change aligning with fiscal responsibility for businesses.95% confidence

Sub-Topics Business Taxes

Track

in committee · New Jersey · Senate Feb 5, 2026

S 3311: Sets flat gross income tax rate at 5.9 percent tax for all taxable income over $37,500 or $75,000, depending on filing status; exempts taxpayers with less income from gross income tax.

This bill (S 3311) replaces New Jersey's current progressive income tax system with a flat 5.9% tax rate on income above specific thresholds. It directly affects individual taxpayers and families filing jointly whose income exceeds $37,500 (single filers) or $75,000 (joint filers). The bill exempts all income below these thresholds from state income tax, meaning lower earners pay nothing. This would simplify the tax structure by eliminating the current multi-rate system for most taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts income below thresholds, providing tax relief to lower/middle earners and simplifies tax structure per bill's explicit language.95% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

Track

died · New Jersey · General Assembly Jan 13, 2026

A 801: Appropriates $34 million from constitutionally dedicated CBT revenues to State Agriculture Development Committee for county planning incentive grants for farmland preservation purposes.

This bill appropriates $34 million from constitutionally protected business tax revenues to fund farmland preservation grants. It provides counties with planning incentive grants covering up to 80% of the cost to acquire development easements on farmland, directly affecting eligible counties like Burlington, Gloucester, and Somerset. The funds are distributed through the State Agriculture Development Committee to support local efforts in preserving agricultural land. The grant amounts vary by county, with some receiving up to $8.5 million total. This policy change enables counties to protect farmland through permanent easements without requiring new tax revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates existing constitutionally protected tax revenues to fund farmland preservation grants, directly advancing budget allocation for agricultural programs.90% confidence ✓ EnvironmentSupports EnvironmentFunds farmland preservation via development easements, conserving agricultural land as natural resource.95% confidence

Sub-Topics Business Taxes Revenue Conservation

Track

in committee · New Jersey · Senate Feb 9, 2026

S 3425: Requires development of online tax training for small and micro-businesses.

This bill requires New Jersey's Division of Taxation to create and maintain a free, online training program specifically for small and micro-businesses. The program will teach how to file and pay state taxes, including corporation business tax, gross income tax, and sales tax. It must be available on the Division's website and updated as tax laws change. The bill directly affects small and micro-business owners who need guidance on complying with New Jersey's tax filing requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates free tax compliance training for small businesses, promoting fiscal responsibility in tax administration without altering tax rates or funding.90% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

Track