Budget & Taxes (Income Tax)

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

A 5196: Imposes gross income tax at rate of 100 percent on amounts received by resident taxpayers from Anti-Weaponization Fund.

This bill requires New Jersey residents who receive money from the Anti-Weaponization Fund to pay a 100 percent state income tax on those funds. It directly affects individuals approved to claim relief from this fund, which was created by a federal settlement related to a lawsuit against the Internal Revenue Service. Under the legislation, recipients cannot use any standard tax deductions, exemptions, or credits to reduce the tax owed on these payments. The law takes effect immediately for any taxable years beginning on or after January 1, 2026, and is administered by the state's Division of Taxation.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill imposes a 100% tax on specific income, directly increasing the tax burden on recipients.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jun 4, 2026

S 4405: Imposes gross income tax at rate of 100 percent on amounts received by resident taxpayers from Anti-Weaponization Fund.

This bill requires New Jersey residents who receive money from the Anti-Weaponization Fund to pay a 100 percent gross income tax on those funds. The legislation explicitly disallows any deductions, exemptions, or tax credits for this specific income, ensuring the full amount is taxed. The Anti-Weaponization Fund is a settlement established by the U.S. Attorney General to compensate individuals claiming they were victims of alleged government overreach, and this bill asserts the state's right to tax those payments.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill imposes a 100% tax on specific income, effectively confiscating funds and increasing tax burden on recipients.95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jun 30, 2026

S 4537: Modifies eligibility for alternative business calculation adjustment allowed under gross income tax.

This bill modifies New Jersey's gross income tax by restricting the alternative business calculation adjustment for taxpayers with higher incomes. It allows business owners to net losses from specific income categories, such as rents or royalties, against gains to determine their taxable business income. Under the new rules, effective for tax years starting in 2026, taxpayers earning $500,000 or less can still deduct 50% of their business profit increase, while those earning between $500,000 and $1 million can only deduct 25%. The bill completely eliminates this tax deduction for individuals with gross income exceeding $1 million.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill restricts tax deductions for higher-income taxpayers, limiting the ability to net losses against gains, which reduces tax relief for those earning over $500,000.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · New Jersey · General Assembly Jun 30, 2026

A 5165: "End Data Center Tax Credits Act"; reduces tax credits available for Next New Jersey Program.*

This bill, titled the "End Data Center Tax Credits Act," sets a combined nine-year spending cap of $11.5 billion for various state tax credit programs, including those for economic recovery, arts, and manufacturing. It specifically reduces the amount of credits available under the Next New Jersey Program and directs $200 million of those credits to a housing agency through competitive auctions. Additionally, the legislation authorizes the Board of Public Utilities to issue tax credits for energy storage projects and creates a temporary income tax credit for certain residential electricity customers.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill caps spending and reduces tax credits, limiting state budget flexibility and defunding programs.95% confidence ✓ HousingSupports HousingBill directs $200M from tax credits to a housing agency via competitive auctions, funding housing initiatives.75% confidence ✗ TechnologyOpposes TechnologyBill reduces tax credits for data centers and energy storage, limiting funding for critical tech infrastructure.65% confidence

Sub-Topics Government Spending Income Tax Tax Credits

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

A 1177: Excludes gains on sales of certain real estate purchases from taxation under corporation business tax and gross income tax.

This bill exempts gains from the sale of certain investment properties from New Jersey's corporation business tax and gross income tax. It applies to real estate purchased during a three-year window starting from enactment (ending three years later), provided the property was held for over two years and was not occupied by the owner (excluding vacant land but including subdivided land actively for sale). Eligible properties must be non-residential investment holdings, not vacant or idle land, and the exclusion requires a minimum two-year holding period. The bill aims to incentivize real estate investment by reducing tax liability on qualifying sales.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts real estate sale gains from NJ taxes for investment properties, creating tax break for investors (aligns with 'oppose' indicator of tax breaks for wealthy).85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 2734: Provides gross income tax exclusion for capital gains from sale of certain employer securities by qualified businesses that result in net positive benefit to State.

This bill allows business owners in New Jersey to exclude capital gains tax from selling company shares to employee ownership structures, specifically benefiting small businesses (under 500 employees, not publicly traded, with NJ headquarters). To qualify, the sale must transfer ownership to an employee stock ownership plan (ESOP), a NJ S-corp owned by an ESOP, or a worker-owned cooperative, with employees gaining at least 30% ownership after the transaction. The tax exclusion requires pre-approval from the New Jersey Economic Development Authority (NJEDA), which verifies the deal will retain full-time NJ jobs and yield a net economic benefit to the state (measured by retained tax revenue and reduced unemployment claims). It aims to incentivize small business owners to sell to employees instead of outside buyers, preserving local jobs and state tax revenue.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill provides tax exclusion for business capital gains, reducing state tax revenue and weakening budget through tax cut.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill incentivizes employee ownership (ESOPs/co-ops) via tax exclusion, requiring 30%+ employee ownership - a direct mechanism to advance worker control and economic rights within labor policy.85% confidence

Sub-Topics Income Tax Revenue Unemployment

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in committee · New Jersey · Senate Jan 13, 2026

S 2550: Provides gross income tax exclusion for capital gains from sale of certain employer securities.

This bill excludes capital gains from the sale of company shares (employer securities) by small New Jersey businesses (fewer than 500 employees, not publicly traded, with headquarters in New Jersey) to employee stock ownership plans (ESOPs), New Jersey S corporations owned by ESOPs, or worker-owned cooperatives. It applies when the buyer ends up owning at least 30% of the business after the sale, directly benefiting employees who gain ownership stakes. The exclusion applies to the capital gains portion of these sales, reducing taxable income for affected employees. The law takes effect immediately for tax years starting after its enactment.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates tax exclusion for capital gains, reducing state revenue; aligns with 'oppose' indicators as it weakens fiscal management by limiting tax income.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill enables employee ownership through tax exclusion for sales to ESOPs/cooperatives, directly granting workers ownership stakes and advancing economic participation in the workplace.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Jan 13, 2026

S 987: Classifies golf caddies as independent contractors for purposes of State employment laws.

This bill classifies golf caddies who perform services for compensation on a golf course as independent contractors under New Jersey state law, rather than employees. It exempts caddies from coverage under key state employment laws, including unemployment compensation, workers' compensation, minimum wage requirements, and state income tax obligations. The bill takes immediate effect upon passage and directly affects caddies by removing them from these employment protections and tax systems. The legislation is currently pending in the Senate Labor Committee.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts caddies from state income tax obligations, directly reducing state tax revenue and weakening fiscal management under Budget & Taxes.95% confidence ✗ Labor & EmploymentOpposes Labor & EmploymentExempts caddies from minimum wage, workers' comp, unemployment benefits - directly weakens key employment protections under state law.95% confidence

Sub-Topics Income Tax Gig Economy Minimum Wage Unemployment

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