Imposes temporary $1 million cap on use of net operating loss deductions under corporation business tax for certain privilege periods.

This bill imposes a temporary limit of $1 million on the amount of net operating loss deductions that corporations can claim under New Jersey's corporation business tax. It directly affects businesses with privilege periods ending between July 31, 2026, and July 31, 2030, restricting how much they can use past losses to lower their current taxable income. For periods ending between 2030 and 2032, any disallowed deductions may be used to reduce income by no more than 75 percent, and unused amounts can be carried forward for an additional six years. The legislation also waives interest and penalties on estimated tax payments made during a specific window if those underpayments result from the new deduction limits.