Budget & Taxes (Tax Credits)

in committee · New Jersey · Senate Jan 13, 2026

S 1887: Permits farm income averaging credit under the New Jersey gross income tax.

This bill allows New Jersey farmers with a farming business to calculate their state income tax using averaged farming income over a four-year period (current year plus three prior base years). The tax credit equals the difference between their normal tax bill and the bill calculated with averaged income, capped at $5,000 annually. It directly affects farmers whose income fluctuates due to weather, market conditions, or production cycles. The policy aims to smooth tax payments across profitable and less profitable years, providing more predictable tax obligations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit to smooth payments for farmers, reducing tax burden during fluctuating income years, aligning with tax relief indicators for middle/lower income.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

SR 20: Urges Governor to take steps for State participation in federal tax credit scholarship program.

This non-binding Senate Resolution (SR 20) urges New Jersey's Governor to adopt the federal tax credit scholarship program created by the "One Big Beautiful Bill Act" (Pub.L.119-21). If adopted, the program would allow New Jersey taxpayers to claim a federal tax credit of up to $1,700 annually for donations to state-recognized scholarship organizations, which would then provide scholarships covering elementary/secondary education costs like tuition, books, and transportation. The resolution directly affects New Jersey families seeking educational options, as state participation would determine whether residents can access these tax benefits and scholarship funds starting January 2027. States have sole discretion to opt into the program, and this resolution formally requests the Governor take necessary steps to join it.

Topics ✓ Budget & TaxesSupports Budget & TaxesPromotes tax credit for education donations, providing tax relief to donors, aligning with tax relief indicators.90% confidence ✓ EducationSupports EducationUrges adoption of tax credit scholarships for K-12 education, expanding access and private funding through donor incentives.95% confidence

Sub-Topics Tax Credits Higher Education School Choice Student Financial Aid

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in committee · New Jersey · Senate Jan 13, 2026

S 1241: "New Jersey Makes, the World Takes Act"; allows corporation business tax credit for selling New Jersey made products.

This bill creates a tax credit for corporations selling retail products made entirely in New Jersey. Corporations can claim a $3.31 credit for every $100 in sales of qualifying "New Jersey made products," defined as goods where all significant parts, processing, and labor originate in New Jersey (with no more than negligible outside content). The credit reduces liability under New Jersey's corporation business tax, not sales tax. It directly affects businesses selling such products, offering a financial incentive to prioritize in-state manufacturing.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for NJ-made products, reducing corporate tax liability to incentivize local manufacturing and economic growth.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 2611: Establishes program to incentivize hiring and continued employment of individuals with developmental disabilities.

This bill establishes a New Jersey tax credit program to encourage businesses to hire and retain employees with developmental disabilities. Employers qualify for a credit of $1 per hour worked (up to $2,000 per employee annually), provided the employee works at least 500 hours in the state and the employer meets eligibility requirements like offering qualifying health insurance. The program is funded with a $2 million annual cap, administered by the Division of Developmental Disabilities, and requires employers to apply yearly by January 15. It directly affects New Jersey employers and individuals with developmental disabilities meeting the defined criteria (including autism, cerebral palsy, or intellectual disabilities).

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates $1/hour tax credit for businesses hiring disabled workers, providing tax relief within $2M annual budget cap, directly advancing fiscal policy for employment incentives.90% confidence ✓ HealthcareSupports HealthcareRequires employers to offer qualifying health insurance to qualify for tax credit, directly promoting employer-sponsored health coverage as a condition for incentives.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit incentivizes hiring/retention of workers with developmental disabilities, expanding employment opportunities and supporting inclusive workplace practices.95% confidence

Sub-Topics Tax Credits Tax Incentives Insurance

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in committee · New Jersey · Senate Mar 5, 2026

S 1799: Increases annual limit of total tax credits certified for qualified projects under Neighborhood Revitalization Tax Credit Program.

This bill increases the annual cap on tax credits available for neighborhood revitalization projects in New Jersey from $15 million to $65 million. It directly affects businesses that fund qualified neighborhood preservation projects, allowing them to claim larger tax credits against certain business taxes. The key change is raising the total credit limit per fiscal year and adding a carryover provision: if credits aren't fully used in one year, the unused amount rolls over to the next year. This expands funding flexibility for projects under the Neighborhood Revitalization Tax Credit Program, which supports community development through private investment.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit cap from $15M to $65M, providing tax relief for businesses funding neighborhood projects.95% confidence ✓ HousingSupports HousingIncreases tax credits for neighborhood revitalization, directly funding housing preservation and development projects through expanded annual cap and carryover provision.95% confidence

Sub-Topics Tax Credits Community Development Property Development

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in committee · New Jersey · Senate Jan 13, 2026

S 1440: Provides gross income tax credit for qualified union dues paid to labor organizations.

S 1440 creates a refundable gross income tax credit for New Jersey taxpayers who pay qualified union dues to labor organizations. The credit equals the full amount of union dues paid during the tax year, applied after other credits, and can result in a cash refund if it reduces tax liability to zero. It defines "qualified union dues" as dues, fees, or assessments paid to labor organizations (which include groups negotiating wages, hours, or working conditions) and requires taxpayers to verify payments to the Division of Taxation. This policy directly affects New Jersey residents who are union members or public employees represented by qualifying labor organizations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for union dues, offering direct tax relief to middle-income workers through reduced tax liability and potential cash refunds.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides refundable tax credit for union dues paid to organizations negotiating wages/hours/conditions, directly supporting collective bargaining and reducing financial barriers for workers.95% confidence

Sub-Topics Income Tax Tax Credits Collective Bargaining

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in committee · New Jersey · Senate Feb 12, 2026

S 1837: Establishes child care contribution tax credit to employers subject to CBT or GIT for certain child care expenses for children of employees.

This bill creates a 50% tax credit for New Jersey employers subject to Corporate Business Tax (CBT) or General Income Tax (GIT) who pay for certain child care expenses related to their employees' children. It covers costs for building/maintaining on-site child care centers, contracting external providers, or subsidizing employees' child care payments, with a $100,000 annual limit per employer. Employers must apply for the credit through the state, submit documentation, and agree to use the funds for eligible child care services. The total credit pool across all employers is capped at $10 million yearly. The bill does not change existing tax rates but reduces tax liability for qualifying employers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates 50% tax credit for employers, reducing tax liability and aligning with tax relief support for Budget & Taxes.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credit for employers to cover child care benefits, directly supporting employee work-life balance and expanding employment benefits under Labor & Employment policies.85% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 2945: Allows tax credit for expenses incurred for medical insurance premiums and deductible payments for certain taxpayers under gross income tax.

S 2945 creates a New Jersey tax credit for low-to-moderate income residents to offset medical insurance costs. It allows individuals with gross income under $65,000 (single or married filing separately) or $130,000 (married filing jointly or head of household) to claim a credit equal to the difference between their medical insurance costs (premiums plus deductibles) and 8.5% of their income. The credit cannot be claimed for expenses already deducted under existing tax rules. The bill requires the Division of Taxation to coordinate with the Health Department to advertise the credit's availability. It takes effect for taxable years beginning after its enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit for low-to-moderate income residents to offset medical insurance costs, reducing tax burden for targeted groups under fiscal relief framework.95% confidence ✓ HealthcareSupports HealthcareCreates tax credit to offset medical insurance costs for low-to-moderate income residents, directly expanding affordable health coverage access.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 2231: Provides temporary corporation business tax and gross income tax credits for certain employer-provided child care expenditures.

This bill provides New Jersey employers with a temporary tax credit of 50% (up to $50,000 per year) against corporation business and gross income taxes for costs spent building, renovating, or improving real property used to operate on-site child care centers. The credit directly affects businesses that construct or maintain facilities primarily serving the children of their own employees. To qualify, employers must commit to operating the child care center for 60 consecutive months and enter a binding agreement with the state director to verify expenses and maintain compliance. The credit is available for three calendar years following the bill's effective date and requires documentation to prevent misuse.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 50% tax credit for employer child care, reducing business tax liability, directly aligning with tax relief indicators for budget/tax policy.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credits for employer child care centers, easing work-life balance for employees and supporting workforce retention through direct workplace benefit expansion.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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in committee · New Jersey · Senate Jan 13, 2026

S 1660: Provides corporation business and gross income tax credit for certain Pre-Broadway and Post-Broadway theater productions.

This bill creates a 35% tax credit against New Jersey corporation business and gross income tax for production companies staging pre-Broadway or post-Broadway theater shows at qualifying venues (350+ seats). The credit covers eligible production costs like sets, costumes, payroll, and advertising, up to a $10 million annual cap. Companies must apply to the New Jersey Economic Development Authority with details about their production, venue, and expenses, and the credit cannot reduce taxes below the state’s minimum. It directly affects theater production companies seeking to offset costs for shows targeting or following Broadway runs.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a 35% tax credit for theater productions, directly providing tax relief through a targeted fiscal incentive for businesses, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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