Budget & Taxes

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

A 1335: Imposes 30 percent electric public utility windfall surtax on certain taxpayers with allocated taxable net income in excess of 20 percent above five-year average income under CBT.

This bill imposes a 30% surtax on electric public utilities in New Jersey with taxable income exceeding 20% above their five-year average. It directly affects electric utilities that transmit and distribute electricity within the state, requiring them to pay this additional tax on their "windfall income" (the portion of income above the 20% threshold). The surtax is paid in addition to regular corporate taxes, with no credits allowed except for payment-related adjustments. All revenue collected, excluding funds for open space/farmland preservation, must be distributed proportionally to the utility’s ratepayers via the Board of Public Utilities.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes 30% surtax on utilities with excess income, generating additional state tax revenue for budget purposes without targeting middle/lower income.95% confidence

Sub-Topics Business Taxes

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

ACR 58: Proposes constitutional amendment to allow lower property tax rate on improvements than on land.

ACR 58 proposes a constitutional amendment requiring New Jersey’s Legislature to create laws allowing municipalities to tax property improvements (like buildings) at a lower rate than land. This would directly affect local governments, which currently apply a single tax rate to both land and improvements. The implementing laws must permit municipalities to phase in rate changes, set their own rate differences, and later return to a single tax rate. The Legislature could limit participation to municipalities needing infrastructure investment, but the amendment itself does not create the tax system - it only directs the Legislature to enable it. The proposal requires voter approval after legislative passage.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes lower property tax rates on improvements, providing tax relief for property owners. Directly alters tax structure to reduce burden on improvements, aligning with tax relief indicators.90% confidence

Sub-Topics Property Tax

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

A 984: Makes $3 million supplemental appropriation for bonus awards for certain COVID-19 emergency essential frontline State workers of Local 195 of International Federation of Professional and Technical Engineers.

This bill allocates $3 million from the General Fund to provide one-time bonus awards to members of Local 195 of the International Federation of Professional and Technical Engineers who worked as frontline state employees during the COVID-19 pandemic. The funds will be distributed by state agencies to eligible union members who provided essential emergency workplace service. The bonus amount is determined per agency through consultation between the Division of Budget and Accounting and the union president. This supplemental appropriation directly affects approximately 3,000 Local 195 members across state departments, as specified in the bill text. It does not create new policy but provides targeted financial recognition for pandemic-era service.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $3M from General Fund for frontline worker bonuses, advancing essential public service funding per bill summary.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentAllocates $3M for one-time bonuses to unionized frontline workers during pandemic, directly funding worker compensation and supporting collective bargaining benefits.95% confidence

Sub-Topics Appropriations State Budget Collective Bargaining

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

A 3074: Establishes Inclusive Workplaces Program in EDA to provide grants and tax credits to encourage employer investment in workspaces inclusive of neurodivergent employees; appropriates $2.5 million.

This bill establishes the Inclusive Workplaces Program within New Jersey's Economic Development Authority (EDA) to provide financial support for employers creating inclusive environments for neurodivergent employees. It offers grants of up to $25,000 per small business (employing fewer than 150 people) and tax credits (up to $25,000 or 50% of eligible investments) for large businesses (150+ employees), both requiring at least one or three neurodivergent employees respectively. Key provisions include funding for sensory-friendly workspace adjustments, adaptive equipment, and staff training programs, with a total annual appropriation of $2.5 million. The program requires employers to apply and demonstrate specific workplace investments before receiving support.

Topics ✓ Budget & TaxesSupports Budget & TaxesAppropriates $2.5M for program funding and provides tax credits to employers, directly advancing fiscal support for inclusive workplace initiatives per budget/tax indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides grants/tax credits to fund inclusive workplaces for neurodivergent employees, directly advancing worker inclusion and rights through financial incentives.95% confidence

Sub-Topics Appropriations

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

A 1484: Provides gross income tax credit to certain taxpayers who pay for certain in-home services through health care service firm.

This New Jersey bill provides a 20% refundable tax credit for eligible residents who pay for in-home care services through a health care service firm. It directly affects taxpayers with gross income under $150,000 who are permanently disabled or age 65+, covering expenses for companion services (non-medical supervision/socialization), health care services (non-licensed), or personal care services (assisting with daily activities like bathing or dressing). The credit excludes insurance-reimbursed costs and applies against income tax after other credits. It takes effect for taxable years starting after enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for lower-income disabled/elderly, reducing tax burden - direct tax relief for targeted group under $150k income.95% confidence ✓ HealthcareSupports HealthcareProvides refundable tax credit for in-home care services (non-medical), improving affordability/access for disabled/elderly, directly expanding healthcare service access.95% confidence

Sub-Topics Income Tax Tax Credits Long-Term Care

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

A 2046: Provides gross income tax deduction to eligible educators and paraprofessionals for expense of classroom supplies.

This bill allows eligible New Jersey educators (K-12 teachers, counselors, principals) and paraprofessionals (school aides) to deduct up to $250 of unreimbursed classroom supply expenses from their gross income tax. It covers costs like books, computers, software, and classroom materials, but excludes nonathletic supplies for health or physical education classes. To qualify, individuals must work at least 900 hours annually in a New Jersey public or private elementary/secondary school. The deduction applies to taxable years starting after the bill's enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for educators' classroom expenses, reducing taxable income for middle-income earners95% confidence ✓ EducationSupports EducationProvides tax deduction for educator classroom supply expenses, reducing personal costs and supporting teacher financial needs.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentAllows educators to deduct work-related supply costs from taxes, reducing employment-related financial burdens. Directly supports worker compensation within education sector.85% confidence

Sub-Topics Income Tax K-12 Education Teachers

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

A 3539: Restricts authority to terminate reciprocal personal income tax agreements with other states.

This bill (A 3539) changes how New Jersey can end tax agreements with other states that exempt income tax for residents working across state lines. It requires that any termination of these reciprocal tax agreements must be done through a new law passed by the legislature and signed by the governor - preventing the Director of Taxation from ending agreements unilaterally. The change applies to all existing agreements, including the 1977 agreement with Pennsylvania, and takes effect immediately. This directly affects the Director of Taxation (who administers these agreements) and the legislative process for ending them.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires legislative approval for tax agreement terminations, enhancing oversight and promoting fiscal responsibility in tax policy.85% confidence

Sub-Topics Income Tax

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

A 1000: Allows gross income tax credits to certain renters whose rent exceeds 35 percent of gross income.

This New Jersey bill creates a refundable tax credit for renters whose rent exceeds 35% of their gross income. It directly affects low-to-moderate income residents (earning $60,000 or less annually) who live in their primary home and pay rent above that threshold. The credit amount varies: 100% of excess rent (up to $1,000) for those earning under $50,000 in high-cost areas or under $25,000 elsewhere; 75% for those earning $25,000-$60,000; and 50% for higher earners outside high-cost areas. The credit applies retroactively to the previous tax year, requiring eligible taxpayers to file amended returns within 90 days of the bill's enactment to claim it.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit to low-income renters (under $60k), reducing their tax burden and directly advancing fiscal relief for targeted residents.95% confidence ✓ HousingSupports HousingProvides refundable tax credit to low-income renters paying >35% of income in rent, directly increasing housing affordability for vulnerable tenants.95% confidence

Sub-Topics Income Tax Tax Credits Affordable Housing Renters Tenant Rights

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

A 3587: Requires boards of education, municipalities, counties, and certain other local contracting units to determine and utilize cost-saving practices when procuring goods and services.

This bill requires New Jersey school boards, municipalities, counties, and similar local government units to actively identify and implement cost-saving methods when purchasing goods and services. It mandates that these entities evaluate their procurement processes to find savings, without changing existing rules about when bids are required. The law specifically excludes real estate purchases, specialized "extraordinary services," and professional services (like legal or medical work) from this requirement. The bill is currently in its early stages, having been introduced and referred to committee in January 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates cost-saving procurement practices, promoting fiscal responsibility in local government spending without altering tax policies.90% confidence

Sub-Topics Procurement

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

A 3893: Requires certain economic incentive recipients to pay penalty for nonperformance.

This bill requires businesses or individuals receiving New Jersey Economic Development Authority (EDA) incentives - such as grants, tax credits, or loans - to pay a penalty if they fail to meet program requirements. The penalty equals the recipient’s applicable tax rate multiplied by the total value of the incentive received up to that point, paid to the state’s General Fund. The EDA must annually verify compliance with incentive agreements and notify the Division of Taxation about noncompliant recipients. It applies to new incentives awarded after the bill’s effective date, ensuring recipients fulfill obligations tied to economic development programs. The bill does not affect existing contracts or reduce current contractual rights under active incentive agreements.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates penalties for EDA incentive noncompliance, directing funds to General Fund. Strengthens fiscal accountability by closing incentive loophole and increasing state revenue.92% confidence

Sub-Topics State Budget Tax Incentives Tags Economic Development

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