Budget & Taxes (Income Tax)

in committee · New Jersey · General Assembly Feb 24, 2026

A 4478: Provides gross income tax deduction for certain health club membership fees and personal training services.

This New Jersey bill (A4478) allows residents to deduct certain health club expenses from their gross income tax. It permits a maximum annual deduction of $5,000 for married couples filing jointly, heads of household, or surviving spouses, and $2,500 for other filers, covering membership fees, initiation costs, and personal training at qualifying fitness facilities. Expenses like spa services, food, childcare, or employer-paid costs are excluded, and the deduction does not apply if the employer covers the expense. The bill defines a "health club" as an establishment where at least 40% of space is dedicated to fitness services, aligning with existing state regulations. It takes effect immediately for taxable years starting after enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for health club expenses, offering relief to middle-income filers under NJ tax code by reducing taxable income.90% confidence

Sub-Topics Income Tax

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

A 2696: Provides for voluntary contributions by taxpayers on gross income tax returns to support programming to address family homelessness.

This bill creates the "New Jersey Family Homelessness Fund" allowing taxpayers to voluntarily add contributions to their state income tax refunds or enclose payments. It directly affects families facing homelessness in New Jersey by funding services through Family Promise affiliates. Key provisions require the state to annually allocate all collected funds to Family Promise's local affiliates for homelessness prevention, emergency shelter, and housing stabilization programs. Taxpayers can choose to contribute via their tax return, with no mandatory fees or tax increases.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates voluntary tax contributions to fund homelessness programs, directly allocating collected funds to essential services.90% confidence ✓ HousingSupports HousingBill creates a fund to directly finance homelessness prevention, emergency shelter, and housing stabilization programs through Family Promise affiliates, explicitly addressing housing stability for families.95% confidence

Sub-Topics Income Tax Homelessness

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

A 780: Provides credit under corporation business tax and gross income tax for construction of buildings in accordance with certain energy and environmental performance standards.

This bill creates tax credits for businesses constructing new buildings in New Jersey that meet specific environmental standards. It provides credits against corporation business tax and gross income tax for buildings certified at LEED Silver, Gold, or Platinum levels (based on energy efficiency, water use, and sustainable materials). Eligible buildings include large residential complexes (10,000+ sq ft) or commercial/industrial structures, with credit amounts tied to building size and certification level. To claim the credit, businesses must obtain certification from the Environmental Protection Commissioner and comply with annual reporting requirements, subject to a $10 million annual cap on total credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits reducing corporate tax burden for green buildings, aligning with tax relief indicators for business incentives.95% confidence ✓ EnergySupports EnergyProvides tax credits for LEED-certified buildings meeting energy efficiency standards, directly promoting clean energy infrastructure and sustainable construction practices.95% confidence ✓ EnvironmentSupports EnvironmentProvides tax credits for LEED-certified buildings meeting energy/environmental standards, directly promoting sustainable construction and reducing environmental impact.95% confidence

Sub-Topics Business Taxes Income Tax Energy Efficiency

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

A 1482: Excludes contributions made to certain retirement savings plans under gross income tax.

This bill changes New Jersey's tax code to exclude certain retirement savings contributions from taxable gross income. It directly affects New Jersey residents who contribute to qualifying retirement plans, such as 401(k)s or IRAs, by reducing their taxable income for state tax purposes. The key provision amends the definition of "gross income" to specify that contributions to these plans are not counted toward taxable earnings. As a result, taxpayers would pay less state income tax on the amounts they save for retirement through these qualified plans. The bill is currently in the introduction stage (2026-01-13) and has not yet been voted on.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes retirement contributions from taxable income, lowering state tax burden for residents per bill's tax code amendment95% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Feb 24, 2026

S 3687: Allows tax credits for employing members of NJ National Guard and members of reserve component of US Armed Forces.

This bill creates tax credits for New Jersey businesses that employ members of the New Jersey National Guard or the reserve component of the U.S. Armed Forces. Employers receive a $1,500 credit per qualified service member who has not completed a deployment or activation, or $2,500 for those who have completed or returned from deployment. The credit applies to both the corporation business tax and the gross income tax, with specific rules for partnerships and S corporations. It directly benefits employers hiring military reservists, aiming to incentivize their employment through targeted tax relief.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits for employers, reducing state tax revenue through targeted relief for military-affiliated employment, aligning with tax relief indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credits to employers hiring military reservists, directly incentivizing employment opportunities for this group within Labor & Employment framework.85% confidence ✓ VeteransSupports VeteransBill provides tax credits to employers hiring NJ National Guard/reserve members, directly supporting veteran employment through financial incentives.90% confidence

Sub-Topics Business Taxes Income Tax National Guard & Reserve Veteran Employment

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in committee · New Jersey · General Assembly Mar 9, 2026

A 3613: "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 creates tax incentives for historic diners and restaurants in New Jersey that meet specific criteria. To qualify, establishments must have operated continuously for at least 25 years (including pandemic closures), qualify as small businesses, comply with health/safety rules, and be family-owned. Approved businesses receive a sales tax exemption on prepared food and beverages for on-site consumption and corporation business/gross income tax credits. The program requires annual registration through a state registry established by the Division of Travel and Tourism, with applications reviewed and approved by the Director.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides sales tax exemption and tax credits for qualifying historic diners, reducing their tax burden and supporting small businesses through targeted fiscal incentives.95% confidence

Sub-Topics Income Tax Sales Tax Tax Incentives

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

A 1942: Provides credits against corporation business and gross income taxes for certain employers that invest in human capital.

This bill (A 1942) provides tax credits to small New Jersey businesses that invest in employee job training. Qualified employers (businesses with under $2.5 million annual revenue, operating in NJ for fewer than 10 years, and employing NJ workers) can claim a 10% credit on training costs, up to $2,000 per employee annually. The credit applies to both corporation business tax and gross income tax, requires training to lead to industry-recognized credentials, and can be claimed for a maximum of five years. It does not reduce tax liability below the statutory minimum or zero.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to small NJ businesses for employee training, reducing their tax liability and incentivizing workforce development.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credits for employer job training investments, directly advancing workforce development and employment standards through financial incentives for skill-building.95% confidence

Sub-Topics Business Taxes Income Tax Workforce Development

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in committee · New Jersey · Senate Feb 5, 2026

S 3350: Establishes gross income tax credit for full-time tuition cost at certain New Jersey institutions of post-secondary education.

S 3350 creates a New Jersey tax credit for residents with gross income under $150,000 who pay full-time tuition at qualifying in-state institutions. It provides a 10% credit on tuition costs, capped at $1,000 per year, for either the taxpayer’s own education or for dependents under age 22. The credit applies to four-year public colleges, county colleges, and accredited vocational schools in New Jersey. Taxpayers cannot claim this credit if they already deducted the tuition for the dependent or if a parent claimed it for them. The credit is available for taxable years starting January 1 after the bill’s enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for tuition, reducing tax burden for middle-income residents under $150k, aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationProvides 10% tax credit for in-state tuition at public/vocational colleges, increasing affordability and access to higher education for NJ residents under $150k income.95% confidence

Sub-Topics Income Tax Tax Credits Higher Education Student Financial Aid

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in committee · New Jersey · Senate Feb 2, 2026

S 3273: Increases gross income tax deduction available to veterans from $6,000 to $12,000.

S 3273 increases New Jersey's tax deduction for eligible veterans from $6,000 to $12,000, directly affecting veterans honorably discharged from active duty in the U.S. Armed Forces, National Guard, or reserve components. The bill amends the state's tax code to double the deduction amount available when calculating gross income tax liability. This change applies to taxable years beginning after the bill's enactment date. The deduction remains available to qualifying veterans regardless of other personal exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for veterans, reducing their tax liability - a direct tax relief measure aligning with support indicators for middle/lower income tax relief.95% confidence ✓ VeteransSupports VeteransDoubles tax deduction for veterans, expanding financial benefits directly addressing veterans' tax relief.95% confidence

Sub-Topics Income Tax Veteran Benefits Veteran Education Veteran Employment

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

A 2634: Extends certain federal income tax advantages of individual health savings accounts to individual taxpayers under the New Jersey gross income tax.

This bill extends New Jersey's state income tax benefits for Health Savings Accounts (HSAs) to mirror the federal tax advantages currently available to individual taxpayers. It amends existing law (P.L.1992, c.161) to align New Jersey's gross income tax treatment with federal HSA rules, allowing residents to deduct HSA contributions and enjoy tax-free growth on savings. The policy change directly affects New Jersey individual taxpayers who use HSAs for qualified medical expenses. The bill does not alter health insurance plan requirements or coverage provisions but adjusts state tax treatment to match federal standards. It remains pending before the Assembly Commerce and Economic Development Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends tax deductions for HSA contributions, aligning NJ tax treatment with federal rules to provide individual taxpayer relief.95% confidence ✓ HealthcareSupports HealthcareExtends tax benefits for Health Savings Accounts (HSAs), enabling tax-free savings for medical expenses and improving healthcare affordability access for NJ residents.95% confidence

Sub-Topics Income Tax Insurance

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