Budget & Taxes (Tax Incentives)

in committee · New Jersey · Senate Jan 13, 2026

S 1921: Increase statutory property tax exemption amounts for improvements to single dwelling units under "Five-Year Exemption and Abatement Law."

This bill triples the maximum property tax exemption amounts for improvements to single-family homes over 20 years old under New Jersey's "Five-Year Exemption and Abatement Law." It increases statutory limits from $5,000/$15,000/$25,000 to $15,000/$45,000/$75,000 for the value of improvements, allowing municipalities to set higher exemption tiers. The law specifically applies to single dwelling units (not multi-unit properties), meaning homeowners making qualifying upgrades to older single-family homes would see reduced property tax assessments for up to five years. The change takes effect for tax years beginning January 1 after enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases property tax exemptions for homeowners, providing direct tax relief on home improvements. Aligns with tax relief indicators for middle-income homeowners under state tax policy.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · New Jersey · Senate Feb 19, 2026

SCR 54: Proposes constitutional amendment to provide property tax exemption for primary residence owned and occupied by surviving spouse of first responder who dies while performing regular or assigned duties.

SCR 54 proposes a constitutional amendment to grant property tax exemptions for the primary residences of surviving spouses of certain first responders who die while on duty. It directly affects surviving spouses of law enforcement officers, paid or volunteer firefighters, and paid or volunteer emergency medical personnel (first aid, ambulance, or rescue squad members) who died from work-related duties. The exemption requires the property to have been the first responder's primary residence at the time of death, excludes cases involving the deceased's willful negligence, and ends if the surviving spouse remarries. It also disqualifies spouses who separated under circumstances that would have led to divorce before the first responder's death.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for surviving spouses of first responders, offering direct tax relief to lower-income beneficiaries as per tax relief indicator.95% confidence

Sub-Topics Property Tax Tax Incentives Tags Public Safety

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in committee · New Jersey · Senate Jan 13, 2026

S 1053: Authorizes proportional property tax exemption for honorably discharged veterans having a service-connected disability and proclaims that the State shall reimburse municipalities for cost of exemptions.

This bill creates a property tax exemption for New Jersey veterans with service-connected disabilities, calculated proportionally to their disability rating (e.g., 50% disability = 50% exemption). It directly affects veterans declared by the U.S. Department of Veterans Affairs to have a service-connected disability of at least 30% (or deemed unemployable due to such disability), and their surviving spouses under specific conditions. The state will reimburse municipalities 102% of the tax revenue lost from these exemptions, with a $10,000 cap for partial exemptions (below 100% disability).

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for veterans (tax relief), with state reimbursing municipalities 102% of lost revenue, ensuring no local budget impact while advancing fiscal responsibility.95% confidence ✓ VeteransSupports VeteransCreates proportional property tax exemption for veterans with 30%+ service-connected disabilities, directly advancing financial benefits and reducing tax burden.95% confidence

Sub-Topics Property Tax Revenue Tax Incentives Veteran Education Veteran Employment Veteran Housing

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in committee · New Jersey · Senate Jun 4, 2026

S 1834: Authorizes creation of additional urban enterprise zones.*

S 1834 amends New Jersey's urban enterprise zone (UEZ) program to allow for the creation of additional zones. The bill updates definitions to clarify terms like "UEZ-impacted business districts" (areas negatively affected by adjacent zones) and expands the list of qualifying municipalities eligible to establish zones. This would enable more communities to create UEZs, which provide tax incentives to businesses to stimulate economic development in distressed areas. The changes would directly affect businesses operating within new zones and local governments managing these zones.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes tax incentives for businesses in urban enterprise zones, directly using tax policy to stimulate economic development in distressed areas.95% confidence

Sub-Topics Tax Incentives Tags Economic Development

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in committee · New Jersey · Senate Jan 13, 2026

S 487: Exempts sales of energy-saving products and services from sales and use tax.

This bill exempts the sales tax on specific energy-saving products and services when purchased by consumers or businesses. It covers items like LED light bulbs, insulation, window weather stripping, tankless water heaters, and furnace filters, which are defined as products or services primarily designed to reduce energy use in homes and buildings. The tax exemption applies to retail sales made after the bill takes effect, removing the sales tax burden on these items. This change directly benefits homeowners and businesses looking to install or buy energy-efficient upgrades.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts energy-saving products from sales tax, providing tax relief to consumers and promoting energy efficiency per bill summary.95% confidence ✓ EnergySupports EnergyExempts energy-saving products (LEDs, insulation, etc.) from sales tax, directly promoting energy efficiency adoption by reducing consumer costs for efficiency upgrades.90% confidence ✓ EnvironmentSupports EnvironmentExempts tax on energy-saving products (LEDs, insulation, etc.), directly promoting reduced energy consumption and conservation as per bill summary.92% confidence

Sub-Topics Sales Tax State Budget Tax Incentives Energy Efficiency Recycling

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in committee · New Jersey · Senate Jan 13, 2026

S 1194: Extends eligibility for certain veterans' gross income tax exemptions to include veterans of all Uniformed Services of United States.

This bill (S 1194) changes New Jersey's tax law to expand a $6,000 gross income tax exemption for veterans. Currently, only veterans of the "Armed Forces" (military branches) qualify. The bill updates the definition to include all "Uniformed Services of the United States," as defined federally, which now covers veterans of the National Oceanic and Atmospheric Administration (NOAA) and the U.S. Public Health Service (USPHS) in addition to military veterans. This change directly affects eligible veterans from these additional service branches by allowing them to deduct $6,000 from their New Jersey taxable income. The amendment applies to all qualifying veterans regardless of which uniformed service they served in.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption for veterans, providing tax relief under NJ's gross income tax law by including additional uniformed service veterans.90% confidence ✓ VeteransSupports VeteransExpands tax exemption eligibility to include NOAA/USPHS veterans, directly advancing financial benefits for more veterans under state law.95% confidence

Sub-Topics Income Tax Tax Incentives

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in committee · New Jersey · Senate Jan 13, 2026

S 1624: Eliminates requirement under veterans' gross income tax exemption that taxpayer serve in active duty status or federal active duty status to qualify for exemption.

This bill (S 1624) removes a requirement that New Jersey veterans must have served in active duty or federal active duty to qualify for a $6,000 tax exemption. It directly affects honorably discharged veterans of the U.S. Armed Forces, reserve components, or New Jersey National Guard who previously needed active duty service to claim the exemption. The key change eliminates the language requiring "active duty status" or "federal active duty status" from the tax code, allowing all eligible honorably discharged veterans to claim the exemption regardless of their service status. The bill does not change the exemption amount or eligibility criteria beyond removing the active duty requirement. It is currently pending in the Senate Military and Veterans' Affairs Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption eligibility for veterans, providing direct tax relief without increasing state revenue burden.95% confidence ✓ VeteransSupports VeteransRemoves active duty requirement, expanding tax exemption eligibility for more veterans without restricting benefits.95% confidence

Sub-Topics Income Tax Tax Incentives National Guard & Reserve

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in committee · New Jersey · Senate Jan 13, 2026

S 2950: Provides CBT and GIT credits for completion of qualified residential housing projects at abandoned commercial building sites.

S 2950 creates tax credits for businesses that convert abandoned commercial buildings (defined as 100,000+ square feet) into residential housing. Developers qualify for a credit equal to 25% of eligible construction costs (up to $1 million per project), covering expenses like demolition, site cleanup, and building repurposing. The credit applies to both New Jersey’s Corporation Business Tax and Gross Income Tax. To claim it, businesses must complete the project before applying and submit documentation to the Division of Taxation. This policy directly affects developers redeveloping underutilized commercial sites into housing.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits (25% of costs) for businesses under NJ's CBT/GIT, directly advancing tax policy to incentivize housing development.95% confidence ✓ HousingSupports HousingProvides tax credits to convert abandoned commercial buildings into residential housing, directly incentivizing housing development and increasing housing supply through financial incentives.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Affordable Housing Historic Preservation

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in committee · New Jersey · Senate Jan 13, 2026

S 1947: Prohibits certain property from receiving property tax exemption or abatement.

This bill prohibits properties that received benefits under the "Grow New Jersey Assistance Act" (2011) or the "New Jersey Economic Stimulus Act of 2009" from qualifying for property tax exemptions or abatements under two specific laws: the "Long Term Tax Exemption Law" and the "Five-Year Exemption and Abatement Law." It directly affects property owners who used state economic incentive programs to develop or improve their properties, preventing them from receiving additional tax breaks. The bill states that these properties have already benefited from public funding, so municipalities should not provide further tax advantages through the targeted exemption laws. The law takes effect immediately upon passage.

Topics ✗ Budget & TaxesOpposes Budget & TaxesPrevents tax exemptions for properties using state incentives, restricting tax benefits and increasing state revenue.95% confidence ✗ HousingOpposes HousingRestricts tax abatements for properties using state economic incentives, limiting financial tools that support housing development, thus opposing housing advancement.85% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

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in committee · New Jersey · Senate Jan 13, 2026

S 529: "Holocaust Reparations Tax Exemption Act"; exempts value of certain payments to Holocaust survivors and their eligible descendants from transfer inheritance tax.

This bill exempts from New Jersey's inheritance tax the value of certain restitution payments received by Holocaust survivors and their eligible descendants during their lifetime. Specifically, it covers payments for assets stolen, hidden, or lost during Nazi persecution (including insurance proceeds or legal settlements), when transferred to beneficiaries after the survivor's death. The exemption applies to the market value of these payments as determined at the time they were received. It directly affects Holocaust survivors and their lineal descendants up to two generations removed, ensuring these restitution funds are not taxed when passed on.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts restitution payments from inheritance tax, providing tax relief to Holocaust survivors and descendants, aligning with tax relief indicators.95% confidence

Sub-Topics Tax Incentives

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