Budget & Taxes (Tax Incentives)

in committee · New Jersey · Senate Feb 12, 2026

S 2165: "Saving Our Diners and Preserving Our Past (SODA POP) Act"; provides sales and use tax exemption and corporation business and gross income tax credits for historic diners and historic restaurants included in online registry.*

This bill provides tax incentives for historic diners and restaurants in New Jersey that meet specific criteria. To qualify, an establishment must have operated continuously for at least 25 years (including pandemic-related closures), qualify as a small business, comply with health/safety rules, and (for restaurants) be family-owned. The bill creates an annual registry managed by the Division of Travel and Tourism, granting approved operators a 12-month sales tax exemption on prepared food/beverages sold for on-site consumption and corporation business/gross income tax credits. These benefits directly support qualifying historic eateries by reducing their tax burden.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides sales tax exemption and corporation tax credits for qualifying historic restaurants, reducing tax burden for small businesses.95% confidence

Sub-Topics Income Tax Sales Tax Tax Incentives

Track

in committee · New Jersey · Senate Jan 13, 2026

S 1585: Reinstates annual sales tax holiday for retail sales of computers, school computer supplies, school supplies, school art supplies, school instructional materials, and sport or recreation equipment.

This bill reinstates an annual sales tax exemption for specific school and recreational items purchased by individuals for non-business use. It exempts computers under $3,000, school computer supplies under $1,000, school supplies (like notebooks and art materials), school instructional materials (textbooks, workbooks), and sport/recreation equipment (gloves, skates, etc.) during a defined 10-day period each year. The exemption period runs from 12:01 a.m. on the ninth day before the first Monday in September through 11:59 p.m. on that Monday. The bill takes effect immediately upon enactment and applies to sales during exemption periods starting at least 30 days after enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemption on school/computer items during annual holiday, reducing sales tax burden for families. Aligns with tax relief support indicators for middle-income households.95% confidence ✓ EducationSupports EducationExempts school computers, supplies, and instructional materials from sales tax, reducing costs for families/schools and increasing access to educational resources.95% confidence

Sub-Topics Sales Tax Tax Incentives Curriculum

Track

in committee · New Jersey · Senate Jan 13, 2026

S 2735: Provides sales and use tax exemption for sales of fuel cell devices and systems and certain tangible personal property powered by fuel cells.

This bill (S 2735) exempts sales of fuel cell devices and systems from New Jersey's sales and use tax. It applies to devices that generate electricity from fuel without combustion (e.g., for heating, cooling, or power) and covers related tangible property. The exemption also extends to fuels like natural gas, propane, and hydrogen used in these systems. This directly benefits businesses and consumers purchasing fuel cell technology for energy use.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts fuel cell device sales from state sales tax, providing direct tax relief to businesses and consumers purchasing clean energy technology.95% confidence ✓ EnergySupports EnergyExempts fuel cell devices from sales tax, directly promoting renewable energy adoption and reducing costs for clean energy infrastructure.95% confidence ✓ EnvironmentSupports EnvironmentExempts fuel cell tech sales tax, promoting clean energy adoption and lower emissions through non-combustion electricity generation.90% confidence

Sub-Topics Procurement Sales Tax Tax Incentives Oil & Gas

Track

in committee · New Jersey · Senate Jan 13, 2026

S 765: Prohibits certain third-party property tax appeals.

This bill prohibits property taxpayers from appealing assessments or exemptions related to financial agreements between other taxpayers and local governments (such as tax abatements). It restricts appeals to only a taxpayer's own property, ending the ability to challenge assessments on neighboring properties or those tied to specific agreements. The bill does not affect local governments' right to appeal assessments on any property. Key changes include banning third-party appeals under the "Long Term Tax Exemption Law" and limiting appeals to one's own property valuation. This aims to reduce costly, complex appeals that create uncertainty in local government budgets.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestricts third-party appeals of tax abatements, preventing challenges to local government fiscal agreements and promoting budget stability.85% confidence

Sub-Topics Property Tax Tax Incentives

Track

in committee · New Jersey · Senate Jan 13, 2026

S 2603: Provides sales and use tax exemption for sales of books at school book fairs.

This bill exempts book sales at school book fairs from New Jersey's sales and use tax. It directly affects elementary and secondary schools holding book fairs where books are sold exclusively to students and their parents or guardians. The law defines a "school book fair" as events held at these schools with limited sales to the school community. The exemption would take effect four months after the bill is enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill exempts school book fair book sales from sales tax, providing tax relief for schools and book fairs, aligning with SUPPORT indicator of 'provides tax relief'.90% confidence ✓ EducationSupports EducationExempts school book fair sales from tax, increasing access to educational materials without cost to schools or families.85% confidence

Sub-Topics Sales Tax Tax Incentives Libraries

Track

in committee · New Jersey · Senate Jan 13, 2026

SCR 64: Proposes constitutional amendment authorizing municipalities to provide partial property tax exemption of up to 15 percent of assessed value for primary residence of certain volunteer first responders.

SCR 64 proposes a constitutional amendment requiring New Jersey's legislature to create a law allowing municipalities to offer a partial property tax exemption of up to 15% on the assessed value of a primary residence. This exemption would apply specifically to active volunteer firefighters, first aid, or rescue squad members whose service benefits the municipality where they live. Municipalities would need to pass a separate ordinance to implement the exemption, and could choose to offer less than the 15% maximum. The amendment must be approved by voters before it can take effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides targeted property tax exemption (up to 15%) for volunteer first responders, offering tax relief to middle-income residents. Municipal implementation required but directly advances tax policy for specific group.85% confidence

Sub-Topics Property Tax Tax Incentives

Track

in committee · New Jersey · Senate Jan 13, 2026

S 1575: Requires State reimbursement to local government units for first-year uncollected property tax revenue attributable to veterans' property tax exemption.

This bill requires the state to reimburse local governments (municipalities, counties, school districts, and fire districts) for property tax revenue lost during the first year when a veteran qualifies for a 100% service-connected disability property tax exemption. It specifically covers veterans with qualifying disabilities (such as paraplegia, amputations, or total blindness) or their surviving spouses who meet the exemption criteria. Local governments must submit documentation to the state within 10 days of exemption approval, and the state treasurer must issue reimbursement within 10 days of each quarterly tax bill due date. The reimbursement applies only to the first tax year after exemption approval, not subsequent years. This change directly affects veterans receiving the exemption and local governments that previously absorbed the revenue loss.

Topics ✓ Budget & TaxesSupports Budget & TaxesState mandates reimbursement for local governments' lost property tax revenue due to veteran exemptions, protecting local budgets and maintaining fiscal stability.95% confidence ✓ EducationSupports EducationBill reimburses school districts for lost property tax revenue from veterans' exemptions, preventing funding shortfalls. This directly protects K-12 school district budgets as a funding mechanism.90% confidence ✓ VeteransSupports VeteransReimburses local governments for lost property tax revenue due to veterans' 100% disability exemption, ensuring continued benefit access without financial burden on municipalities.95% confidence

Sub-Topics Property Tax Revenue Tax Incentives Veteran Healthcare Veteran Housing

Track

in committee · New Jersey · Senate Jan 13, 2026

S 872: Repeals $100,000 cap on sales and use tax exemption for certain capital improvements made by businesses participating in Urban Enterprise Zone program.

This bill repeals a $100,000 limit on sales tax exemptions for businesses in New Jersey's Urban Enterprise Zone (UEZ) program. It directly affects certified UEZ businesses (those with UZ-4 certification) by allowing them to claim full tax exemptions on all costs for property improvements, such as building repairs or renovations, without the previous $100,000 cap. The exemption applies retroactively to all qualifying property improvements made on or after January 1, 2022. This change simplifies access to tax savings for businesses seeking to upgrade their facilities within designated UEZ areas.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals $100k cap on business tax exemptions, reducing state tax revenue by allowing unlimited exemptions for UEZ businesses.90% confidence

Sub-Topics Sales Tax Tax Incentives Tags Economic Development

Track

in committee · New Jersey · Senate Jan 13, 2026

S 1568: Requires State reimbursement to municipalities of cost of disabled veterans' total property tax exemption.

This bill requires New Jersey to reimburse local municipalities 102% of the property tax costs they incur when granting total property tax exemptions to disabled veterans. It directly affects municipalities that provide these exemptions under existing law (P.L.1948, c.259), which currently absorb the cost of the exemption. Key provisions include annual certifications by tax assessors (by June 1) and county boards (by June 15) detailing the number and dollar amount of exemptions granted, with the state using this data to calculate reimbursements. The bill also amends tax reporting rules to separately track these exemptions in county tax tables without including them in the taxable property base. This ensures municipalities aren’t financially burdened by the exemption program while maintaining transparency in tax administration.

Topics ✓ Budget & TaxesSupports Budget & TaxesState mandates reimbursement to municipalities for disabled veterans' tax exemptions, increasing state budget outlay for fiscal responsibility.95% confidence ✓ VeteransSupports VeteransMandates state reimbursement for municipalities' costs of disabled veterans' property tax exemptions, ensuring continued benefit without local financial burden.95% confidence

Sub-Topics Property Tax Tax Incentives

Track

in committee · New Jersey · Senate Jan 13, 2026

S 877: Provides temporary corporation business tax and gross income tax credits for insourcing business to New Jersey.

This bill provides temporary tax credits to New Jersey businesses that bring operations back to the state from outside the U.S. or from other U.S. states. Businesses qualify for a 35% credit on expenses for moving operations from outside the U.S. and a 25% credit for moving from within the U.S. but outside New Jersey, provided they maintain higher full-time employee counts in New Jersey than before the move. Credits expire for tax periods ending before 2025 and can be carried forward but are recaptured if employee numbers decrease in subsequent years. The credits apply to both corporate business taxes and individual gross income taxes, limited to 50% of tax liability, and require a written relocation plan.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to businesses for insourcing, reducing corporate tax liability and incentivizing economic activity within New Jersey's fiscal framework.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

Track