Budget & Taxes (Income Tax)

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

A 2442: Indexes for inflation various thresholds and qualifications under New Jersey gross income tax.

This bill adjusts several New Jersey income tax thresholds and qualification limits annually for inflation. It directly affects taxpayers who qualify for tax exemptions (like those with low income) or deductions (such as for education savings, student loans, or tuition payments). Starting in 2022, the thresholds will automatically increase each year using the Chained Consumer Price Index, rounded to the nearest $5. This ensures the income limits keep pace with rising costs without requiring new legislation each year.

Topics ✓ Budget & TaxesSupports Budget & TaxesAdjusts tax thresholds for inflation to prevent unintended tax hikes for low-income filers, providing automatic relief without new legislation.95% confidence

Sub-Topics Income Tax

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

A 3796: Establishes loan redemption program and gross income tax credit for mental health professionals who serve children and adolescents.

This bill proposes a program to help mental health professionals working with children and adolescents in New Jersey reduce student loan debt. Licensed mental health professionals who live in New Jersey, work full-time providing counseling to youth, and have qualifying student loan debt can receive up to $1,000 annually toward their loans (for up to 4 years) or claim a $1,000 tax credit against their state income tax. To qualify, participants must maintain residency, employment in qualifying roles, and provide proof of loan balance and service each year. The program aims to support mental health workforce development by easing financial burdens for professionals serving young people.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing state tax burden for qualifying mental health professionals, aligning with tax relief for public service workers.95% confidence ✓ HealthcareSupports HealthcareProvides financial incentives (loan relief/tax credit) for mental health professionals serving children/adolescents, directly expanding access to mental health services.95% confidence

Sub-Topics Income Tax Tax Credits Mental Health

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

A 3824: Expands eligibility for pension and retirement income exclusion to taxpayers with incomes exceeding $150,000, and increases amount of exclusion that qualifying taxpayers may claim.

This bill (A 3824) would expand New Jersey's pension and retirement income tax exclusion to include taxpayers with incomes above $150,000. Currently, the exclusion phases out for those earning over $150,000, but this bill would allow taxpayers with income between $150,000 and $300,000 to claim 50% of the exclusion amount for the portion of income within that range. It directly affects New Jersey residents aged 62+ or with permanent disabilities who receive pension or retirement benefits. The change would increase the maximum exclusion amount for qualifying taxpayers, moving it from $150,000 to $300,000 in taxable income.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exclusion for retirees, reducing taxable income for $150k-$300k earners, providing tax relief per bill's explicit tax policy change.95% confidence

Sub-Topics Income Tax Pensions

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

A 3616: Provides corporation business tax credits and gross income tax credits to small business employers and farm employers for increases in certain mandatory employer contributions.

This bill provides tax credits to small business employers (under 25 employees and $1 million annual revenue) and farm employers in New Jersey for increased costs of mandatory insurance. Specifically, it credits businesses for the difference between their current-year expenses on workers' compensation, temporary disability, and unemployment insurance versus what they paid in the prior year. The credit is capped at $12,000 annually per business and applies to both corporation business tax and gross income tax filings. The program runs from 2020 through 2029, helping qualifying small employers offset rising insurance costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides targeted tax credits to small businesses for increased insurance costs, reducing their tax burden and supporting fiscal responsibility within state tax policy.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credits for mandatory worker insurance costs (comp, disability, unemployment), supporting employer compliance with labor protections without reducing benefits.95% confidence

Sub-Topics Business Taxes Income Tax Unemployment Workers' Compensation Tags Small Business

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in committee · New Jersey · General Assembly Feb 19, 2026

A 4359: Provides corporation business and gross income tax credit for employment of persons who have experienced job loss due to automation.

This bill creates a tax credit for New Jersey businesses that hire workers displaced by automation. Businesses with headquarters in New Jersey can claim a credit equal to 10% of the wages paid to each qualifying employee (capped at $2,500 per employee per tax year), provided the employee was previously laid off due to automation and is retained for at least seven months. The credit applies to both corporation business tax and gross income tax, and the bill defines "automation" as systems replacing human labor without continuous human input. It directly affects New Jersey employers and workers who lost jobs to automation, particularly in counties like Ocean County where many high-risk jobs exist.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing business tax liability for hiring automation-displaced workers, aligning with fiscal support measures for workforce development.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credit to hire workers displaced by automation, directly supporting employment for affected workers and incentivizing job creation in labor market transition.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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

A 1290: Provides gross income tax exclusion for distributions from individual retirement accounts to qualified charitable organizations.

This bill (A-1290) would amend New Jersey's tax code to exclude distributions from individual retirement accounts (IRAs) made to qualified charitable organizations from taxable gross income. It directly affects New Jersey residents who use IRA funds for charitable giving, allowing those distributions to be treated as non-taxable income for state tax purposes. The key mechanism is an amendment to the definition of "gross income" in New Jersey law, specifically adding that such charitable IRA distributions are not included in taxable income. This change aligns New Jersey's treatment of these distributions with federal tax rules for charitable IRA gifts. The bill is currently in committee referral.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes charitable IRA distributions from taxable income, providing tax relief for donors and encouraging charitable giving under NJ tax code.95% confidence

Sub-Topics Income Tax

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

A 2813: Allows certain volunteer firefighters, rescue and first aid squad members to claim $2,000 gross income tax exemption.

This bill provides a $2,000 deduction from New Jersey gross income tax for eligible volunteer firefighters, first aid squad members, and rescue squad volunteers. To qualify, individuals must serve the entire tax year, meet specific duty requirements (60% fire service attendance or 400 duty hours for fire volunteers; 10% rescue service attendance or 400 duty hours for first aid/rescue volunteers), and hold required certifications (Firefighter I for fire volunteers or approved EMS training for rescue volunteers). Fire departments and first aid/rescue squads must submit annual lists of qualifying members to state agencies by March 31st. The deduction applies to taxable years beginning after the bill's enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $2,000 gross income tax deduction for volunteer first responders, reducing taxable income - direct tax relief for lower/middle-income public service workers.95% confidence

Sub-Topics Income Tax Tax Incentives

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

A 134: Provides gross income tax deduction for certain wages of qualified health care professionals employed by health care entities.

This bill provides a 25% gross income tax deduction on hourly wages earned by qualified health care professionals working for eligible New Jersey health care entities. It directly affects licensed nurses, nurse aides, physician assistants, home health aides, and direct support professionals employed by facilities like hospitals, clinics, home care agencies, or psychiatric centers. The deduction applies to wages paid during the taxable year, reducing taxable income for these workers. The law takes effect for tax years starting after its enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% tax deduction for healthcare workers' wages, reducing taxable income. Tax relief for middle-income professionals aligns with supporting fiscal responsibility.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax deduction for healthcare workers' wages, increasing disposable income and directly supporting wage retention for targeted labor force.90% confidence

Sub-Topics Income Tax

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

A 1259: Provides retirement income exclusion under gross income tax for certain persons with income over $3,000 from part-time employment.

This bill (A-1259) modifies New Jersey's retirement income tax exclusion rules to specifically assist older residents with modest part-time earnings. It creates a new provision allowing taxpayers aged 62+ who receive retirement income but also earn over $3,000 from part-time employment (defined as fewer than 30 hours/week) to exclude a portion of their retirement income from taxable gross income. The exclusion amount is calculated by subtracting the $3,000 part-time income threshold and any prior retirement exclusion from the standard exclusion limit. This directly affects retirees aged 62+ with part-time jobs earning $3,001-$150,000 in total income (for 2021+ tax years), reducing their taxable income for those earning between $3,000-$150,000 from part-time work.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exclusion for retirement income of seniors with modest part-time earnings, reducing taxable income and offering relief to lower-income retirees.95% confidence

Sub-Topics Income Tax

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

A 2865: Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

This New Jersey bill (A2865) allows resident homeowners to deduct the full cost of purchasing and installing a qualifying whole-house backup generator at their primary residence from their gross income tax. The generator must be permanently connected, run on natural gas or propane, operate only during power outages, and comply with all state and local installation regulations. It directly affects New Jersey homeowners who own a primary residence and install such a generator, providing a tax benefit for these expenses. The deduction applies to the year the generator is purchased and installed, and the bill takes immediate effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for homeowners, reducing taxable income and offering direct tax relief for primary residence generator costs.85% confidence

Sub-Topics Income Tax Procurement

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