Budget & Taxes in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

S 1781: Increases amount of gross income tax exclusion for gains from sales of principle residences.

This bill (S 1781) increases New Jersey's exclusion for capital gains tax on sales of primary residences. It doubles the maximum exclusion amount: from $250,000 to $500,000 for single homeowners, and from $500,000 to $1,000,000 for married couples filing jointly. To qualify, homeowners must have owned and lived in the home as their primary residence for at least two of the past five years. The change directly affects New Jersey residents selling their primary homes who meet the ownership and use requirements. The bill amends existing law (P.L.1998, c.3) to reflect these updated exclusion limits.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax

in committee · New Jersey · Senate Jan 13, 2026

S 1840: Creates "New Jersey Responsible AI Advancement and Workforce Protection Act."

This bill establishes the "New Jersey Responsible AI Advancement and Workforce Protection Act" to create a framework for AI deployment that prioritizes worker protections and community impact. It requires AI infrastructure companies (like large computing facilities) to pay a 5% fee on their revenue into the AI Horizon Fund, which will support worker retraining, clean energy upgrades for AI facilities, and community resilience programs. Employers with 100+ employees must disclose AI-related layoffs (including dates and numbers) and make supplemental contributions to the fund based on affected workers. The bill also mandates environmental assessments for large AI projects and algorithmic impact reviews for high-risk AI systems used in housing, employment, and healthcare.

Topics ✓ Budget & Taxes ✓ Energy ✓ Labor & Employment ✓ Technology

Sub-Topics Renewable Energy Artificial Intelligence

in committee · New Jersey · Senate Jan 13, 2026

S 2078: Requires State Treasurer to organize and publish certain contract and grant data and information on State expenditure Internet website.

S 2078 requires New Jersey's State Treasurer to create and maintain a public website displaying detailed spending data for all state contracts, grants, and purchases funded by state money. It mandates that the website, accessible without charge and organized by fiscal year, include specific details like contracting entity names, costs, dates, and funding sources for all State agencies. The website must allow public feedback and permanently retain all non-confidential data, while excluding private or legally protected information. This bill directly affects the State Treasurer, all state agencies, and the public by increasing transparency in how state funds are spent.

Topics ✓ Budget & Taxes

Sub-Topics Government Spending Procurement

in committee · New Jersey · Senate Jan 13, 2026

S 1621: Increases the income eligibility threshold and eliminates asset test for Medicare Savings Programs; Appropriates funds.

This bill (S 1621) would expand access to New Jersey’s Medicare Savings Programs by raising the income eligibility limit to 133 1/3% of federal poverty levels and eliminating the asset test (which previously disqualified people with modest savings). It directly affects low-income seniors (65+), blind individuals, and people with disabilities who need help affording Medicare costs. The bill requires the state to appropriate new funds to cover these expanded benefits, simplifying eligibility without requiring applicants to meet asset limits. This change aims to make Medicare coverage more accessible for vulnerable residents who currently face barriers due to savings thresholds.

Topics ✓ Budget & Taxes ✓ Healthcare

Sub-Topics Medicare

in committee · New Jersey · Senate Jan 13, 2026

S 1956: Requires Legislature to approve by concurrent resolution settlements of over $10 million or more of claims for damages against the State.

This bill requires the New Jersey Legislature to approve in writing any settlement of $10 million or more for claims against the State. It applies to settlements after claimants file under the Tort Claims Act, whether for one claimant or multiple related claims arising from the same event. The State must submit the proposed settlement amount to lawmakers at least 30 days before finalizing it, and both legislative chambers must vote to approve it by majority. This process ensures legislative oversight for large settlements before they are finalized. The bill does not change existing claim procedures but adds a legislative approval step for significant financial commitments.

Topics ✓ Budget & Taxes

in committee · New Jersey · Senate Jan 13, 2026

S 951: Requires ballot question on approval of State bond issue to disclose total amount of debt of State or other entity, debt service on which is funded through annual State appropriation.

This bill requires that when New Jersey voters approve state bond issues (which create state debt), the ballot statement must include the total current debt amount owed by the state, state agencies, and other entities that rely on annual state funding to pay interest and principal. It affects voters deciding on bond proposals by mandating this disclosure appear on ballots. The requirement specifies the debt figure must be current as of June 30 of the previous year, ensuring voters see the full financial context before approving new debt.

Topics ✓ Budget & Taxes

Sub-Topics Appropriations Debt & Bonds

in committee · New Jersey · Senate Jan 13, 2026

S 502: Establishes one-time grant program to support implementation of free, full-day kindergarten programs in certain school districts; appropriates $5 million.

This bill establishes a one-time $5 million grant program to help 10 specific New Jersey school districts implement free, full-day kindergarten programs. It directly affects districts that currently do not offer such programs, including Moorestown, Haddonfield, Metuchen, Monroe Township, Millstone, the Chathams, Bridgewater-Raritan, Hillsborough, Cranford, and Westfield. School districts must submit applications detailing their implementation plans and cost estimates to receive a grant, with funds distributed evenly among approved applicants. The program appropriates $5 million from the General Fund to cover these implementation costs.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics State Budget Early Childhood K-12 Education

in committee · New Jersey · Senate Jan 13, 2026

S 2507: Revises Energy Tax Receipts Property Tax Relief Aid program; requires all energy taxes to be paid directly to municipalities.

This bill (S 2507) proposes to change how energy tax payments flow to municipalities. It requires energy taxpayers (like utility companies) to pay their taxes directly to local governments instead of the state treasury. Municipalities would receive fixed annual payments based on historical tax distributions, calculated by the State Treasurer, with energy taxpayers able to apply these payments as credits against their tax bills. The change would take effect starting in fiscal year 2022, shifting the payment mechanism from state-administered distribution to direct municipal receipt. (Note: This bill is currently pending in the Senate and has not been enacted.)

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

in committee · New Jersey · Senate Jan 13, 2026

S 1955: Limits amount of real property that may be exempt from property taxation under "Long Term Tax Exemption Law."

This bill (S 1955) limits New Jersey municipalities' ability to grant long-term property tax exemptions for redevelopment projects. It sets a 5% cap on the total value of exempt property relative to a municipality's overall taxable property value. Municipalities exceeding this threshold cannot approve new tax exemptions until their exemption rate drops below 5%, calculated by dividing exempt property value by total taxable value and multiplying by 100. The bill directly affects local governments seeking to use tax exemptions to attract redevelopment projects, ensuring such exemptions do not unfairly reduce state school aid allocations to other districts.

Topics ✓ Budget & Taxes ✗ Housing

Sub-Topics Property Tax Sales Tax Tax Incentives Community Development Property Taxes

in committee · New Jersey · Senate Jan 13, 2026

S 1668: Establishes "Artificial Intelligence Innovation Partnership"; provides funding for certain nonprofit partnerships to promote certain emerging technology businesses.

S 1668 establishes the "Artificial Intelligence Innovation Partnership" in New Jersey, administered by the Commission on Science, Innovation and Technology. It provides funding to certified nonprofit organizations that collaborate with emerging AI technology businesses, universities, and research institutions to support AI innovation and commercialization within the state. The program specifically targets early-stage AI companies conducting research, pilot manufacturing, or technology commercialization in New Jersey, including those owned by underrepresented groups. Nonprofits must meet specific tax and incorporation requirements to qualify for funding under this initiative.

Topics ✓ Budget & Taxes ✓ Technology

Sub-Topics Artificial Intelligence Emerging Technology

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