Budget & Taxes (Income Tax)

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 1483: Provides temporary gross income tax credit to first time home buyers and seniors.

This bill provides a temporary tax credit for New Jersey residents who are either first-time homebuyers (purchasing a home in 2019, 2020, or 2021) or seniors aged 65+ during the tax year. Eligible taxpayers receive a credit equal to 25% of their property taxes paid on their primary home, capped at $2,500 per year. The credit reduces income tax liability, and any unused portion is refunded directly to the taxpayer. The credit applies only for tax years 2019 through 2021, offering short-term relief for qualifying homeowners.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing income tax liability for homebuyers/seniors, aligning with tax relief for middle/lower income groups per topic indicators.95% confidence ✓ HousingSupports HousingProvides tax credit reducing property tax burden for homebuyers/seniors, increasing affordability and accessibility of housing.95% confidence

Sub-Topics Income Tax Procurement Tax Credits Homeownership Property Taxes

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

A 3636: Allows gross income tax deduction for up to $1,200 of unreimbursed expenses incurred by eligible educators for purchase of classroom supplies.

This bill allows eligible New Jersey educators (teachers in public or nonpublic K-12 schools) to deduct up to $1,200 from their taxable income for unreimbursed classroom supply expenses. It defines "classroom supplies" as items like books, pencils, computers, lab equipment, and other daily teaching materials. The deduction applies only to expenses not covered by the school and takes effect after enactment for future tax years. The bill does not change tax rates but provides a direct tax benefit for educators covering out-of-pocket costs.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct tax relief for educators via $1,200 deduction, reducing taxable income for middle-income teachers without changing tax rates.90% confidence ✓ EducationSupports EducationProvides tax deduction for educators' unreimbursed classroom supplies, directly supporting teachers' ability to purchase necessary materials for K-12 instruction.95% confidence

Sub-Topics Income Tax K-12 Education Teachers

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

A 3075: Provides corporation business tax credits and gross income tax credits to businesses employing and retaining certain neurodiverse individuals.

This bill provides tax credits to New Jersey businesses that hire and retain neurodiverse employees in STEM/AI roles. Businesses receive credits of up to $9,000 per full-time employee (or $4,500 for part-time) annually, increasing with each consecutive year of employment. To qualify, employees must earn at least minimum wage, work in eligible STEM/AI positions (not as contractors), and be certified by the Division of Vocational Rehabilitation as neurodiverse. The credits reduce corporate and gross income tax liability, capped at 50% of tax owed, and require employers to submit certification applications for eligible workers.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to businesses, reducing corporate tax burden; aligns with tax relief indicator for support95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credits for hiring neurodiverse STEM/AI workers with minimum wage guarantee, promoting inclusive employment and retention.95% confidence

Sub-Topics Business Taxes Income Tax Minimum Wage Professional Licensing

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

A 252: Allows credit against gross income tax for certain eligible taxpayers pursuing education and employment in State.

This bill creates a $1,500 nonrefundable tax credit for New Jersey residents who meet specific criteria: graduating from a New Jersey high school and a New Jersey institution of higher education with a 3.5+ GPA, then working full-time (25+ hours/week) for a New Jersey employer within two years of graduation. The credit applies only to the first five consecutive tax years of eligible employment and cannot reduce tax liability below zero. It directly affects New Jersey graduates who pursue higher education and employment within the state, aiming to encourage retention in the state workforce. The credit is limited to undergraduate degree holders from public or private NJ institutions meeting the GPA and employment requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $1,500 nonrefundable tax credit reducing liability for eligible NJ graduates, aligning with tax relief for targeted education/workforce participants.95% confidence ✓ EducationSupports EducationTax credit incentivizes higher education completion and local employment, promoting educational attainment and workforce development in NJ.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit to incentivize full-time employment for NJ graduates, supporting workforce retention and education-to-career pathways.85% confidence

Sub-Topics Income Tax Tax Credits Higher Education K-12 Education Public Employees

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in committee · New Jersey · General Assembly Feb 12, 2026

A 4021: Provides CBT and gross income tax credits for certain energy infrastructure upgrades.

This bill provides tax credits to electricity generators (companies operating power plants) who increase their energy output by at least 5% through qualifying infrastructure upgrades. Generators can claim credits covering up to 75% of upgrade costs or $5 million per company, whichever is lower, to offset Corporate Business Tax and gross income tax. To qualify, generators must apply for certification showing the 5% production increase, documenting specific upgrades like efficiency improvements, grid technology, or renewable energy integration. The total credits across all generators are capped at $100 million statewide, and unused credits may be carried forward for up to four tax years. The program requires documentation of actual energy production changes and prohibits double-counting with other tax benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to energy generators, reducing their tax burden and incentivizing infrastructure upgrades - direct tax relief under Budget & Taxes.95% confidence ✓ EnergySupports EnergyBill provides tax credits for infrastructure upgrades increasing energy output (e.g., efficiency improvements), directly promoting energy infrastructure development and efficiency.95% confidence ✓ EnvironmentSupports EnvironmentTax credits for efficiency upgrades in energy infrastructure promote reduced emissions and resource conservation, aligning with environmental protection goals.85% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Renewable Energy

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

A 1757: Provides corporation business tax and gross income tax credits for businesses that employ formerly incarcerated individuals.

This bill proposes a New Jersey tax credit for businesses that hire formerly incarcerated individuals. Businesses would receive a 10% credit on qualified wages paid to these employees (capped at $1,200 per person per tax year), provided they hire at least 25% formerly incarcerated new employees and maintain 50% of those hires from the previous year. To qualify, employees must be in sustained employment (at least 185 business days) and businesses must conduct targeted recruitment for formerly incarcerated individuals and their immediate families. The bill includes safeguards against abuse, such as denying credits if businesses displace other workers solely to claim the credit, and prevents double-dipping with other state tax credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit (10% on wages) for hiring formerly incarcerated individuals, reducing business tax burden - fiscal incentive aligns with tax relief indicators.95% confidence ✓ Criminal JusticeSupports Criminal JusticeTax credits for hiring formerly incarcerated individuals directly support reintegration, reduce recidivism, and align with criminal justice reform goals by promoting rehabilitation through employment.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit incentivizes hiring formerly incarcerated individuals, expanding employment opportunities for a marginalized workforce.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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

A 3640: Allows gross income tax deduction of up to $1,200 for purchases of school supplies by parents and guardians.

This bill allows New Jersey parents and guardians to deduct up to $1,200 from their taxable income for eligible school supply purchases made for students in public or private K-12 schools or higher education institutions. It specifically covers common items like notebooks, pencils, folders, calculators, paper, and other standard classroom materials. The deduction applies to purchases made during the taxable year and takes effect for years beginning after the bill's enactment date. This creates a direct tax benefit for families covering recurring school-related expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief via income deduction for school supplies, benefiting middle-income families by lowering taxable income.95% confidence ✓ EducationSupports EducationAllows tax deduction for school supplies, reducing out-of-pocket costs for families and improving access to educational materials for K-12 and higher education students.85% confidence

Sub-Topics Income Tax K-12 Education

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

A 2055: Provides corporation business and gross income tax credit for certain Pre-Broadway and Post-Broadway theater productions.

This bill creates a 35% tax credit for New Jersey theater production companies covering eligible "pre-Broadway" (shows preparing for Broadway) and "post-Broadway" (shows starting national tours after NYC runs) productions. It directly affects theater companies performing at qualified venues (350+ seats) in New Jersey, allowing them to offset up to 35% of production costs like sets, payroll, and advertising. Companies must apply to the New Jersey Economic Development Authority (NJEDA), with credits capped at $10 million annually per fiscal year. The credit applies to specific expenditures including venue use, crew wages, and marketing, but cannot reduce tax liability below minimums or be carried forward beyond three years.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates 35% tax credit for theater companies, reducing tax liability and providing fiscal relief to eligible businesses, directly advancing tax policy support.95% confidence

Sub-Topics Income Tax Tax Credits

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