Budget & Taxes in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

SCR 42: Amends Constitution to limit use of nonrecurring revenue in State budget except in certain times of crisis and limits State budget growth.

SCR 42 would amend New Jersey's constitution to require state budgets to be funded solely by regular, recurring revenue (like ongoing tax collections), not one-time or nonrecurring sources such as asset sales. It allows exceptions only for major crises like war, natural disasters, or insurrections, requiring a two-thirds vote in both legislative chambers to exceed recurring revenue limits. The bill also caps annual budget growth at the rate of inflation (measured by the Consumer Price Index in the NYC/Philadelphia areas) and mandates that unspent recurring revenue be deposited into the state's "rainy day fund" (Surplus Revenue Fund). This directly affects how the Legislature and Governor must structure state budgets, restricting the use of temporary revenue and controlling spending growth.

Topics ✓ Budget & Taxes

Sub-Topics Revenue State Budget

passed · New Jersey · Senate Jun 18, 2026

S 1759: Increases amount of rental payments defined as rent constituting property taxes for purposes of deduction from gross income for property tax payments; increases property tax credit option for certain individuals.

S 1759 increases the portion of rent that counts as property taxes for tax deduction purposes from 18% to 30% for renters whose rental unit is their primary residence. It also raises the maximum property tax credit amount from $50 to $250 for eligible taxpayers, including those aged 65 or older, or who are blind or disabled and not subject to New Jersey income tax. These changes apply to both homeowners and renters who qualify for these tax benefits under New Jersey law. The bill modifies specific definitions and credit thresholds in the state's tax code without altering eligibility criteria.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Income Tax Property Tax Tax Credits Property Taxes Renters

in committee · New Jersey · Senate Jan 13, 2026

S 865: Provides alcoholic beverage tax credits to breweries for qualified capital expenses.

This bill (S 865) allows New Jersey breweries to claim tax credits against their alcoholic beverage tax liability for qualified capital expenses, such as purchasing equipment or machinery used in brewing. It directly affects licensed breweries that incur eligible expenses during a tax year, with credits limited to $200,000 per brewery annually and a total $5 million cap across all breweries each year. Breweries must apply for director approval using a detailed form documenting expenses, employment, production, and business relationships, with unused credits carryable for up to three years. The director must process applications within 90 days or deem them approved if delayed.

Topics ✗ Budget & Taxes

Sub-Topics Procurement

in committee · New Jersey · Senate Jan 13, 2026

S 1921: Increase statutory property tax exemption amounts for improvements to single dwelling units under "Five-Year Exemption and Abatement Law."

This bill triples the maximum property tax exemption amounts for improvements to single-family homes over 20 years old under New Jersey's "Five-Year Exemption and Abatement Law." It increases statutory limits from $5,000/$15,000/$25,000 to $15,000/$45,000/$75,000 for the value of improvements, allowing municipalities to set higher exemption tiers. The law specifically applies to single dwelling units (not multi-unit properties), meaning homeowners making qualifying upgrades to older single-family homes would see reduced property tax assessments for up to five years. The change takes effect for tax years beginning January 1 after enactment.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Mar 2, 2026

S 1841: Creates "New Jersey Workplace Skills Savings Program"; appropriates $25 million.

New Jersey's S 1841 creates the "Workplace Skills Savings Program," allowing eligible workers to save for job training. Employees earning wages subject to New Jersey income tax can contribute up to $1,000 annually to a personal account, with the state matching each dollar contributed. Funds can be used for apprenticeships, licensing exams, retraining, or approved job-related education at schools or unions. The program is funded by a $25 million state appropriation from the General Fund, administered by the Department of Labor and Workforce Development, with the Department of the Treasury managing the trust. It takes effect January 1, 2027.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Appropriations Income Tax State Budget Apprenticeships Workforce Development

in committee · New Jersey · Senate Jan 13, 2026

S 2014: Establishes school district grant program in DOE to reimburse public school teachers for classroom material expenditures.

S 2014 establishes a New Jersey Department of Education grant program to reimburse full-time public school teachers for classroom supply expenses, directly affecting teachers in all public school districts. Teachers may receive up to $250 annually for eligible items like books, computers, or classroom materials (excluding physical education supplies), with reimbursement requiring submission of receipts to their school district. Unused funds after initial reimbursements cover teachers who spent over $250, with remaining balances carried forward to the next school year. The program is funded exclusively through federal pandemic relief funds (e.g., the American Rescue Plan Act), not state budget dollars.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics State Budget Teachers

in committee · New Jersey · Senate Jan 13, 2026

S 672: Provides gross income tax deduction for amounts paid to taxpayers for sale of certain real property interests for conservation purposes.

This bill allows New Jersey property owners to deduct the capital gain from selling land to qualified conservation organizations on their state gross income tax return. It applies to both full-market-value sales and "bargain sales" (where land is sold below market value but with conservation restrictions). The deduction equals the gain calculated under federal tax rules, covering sales to groups like Green Acres, farmland preservation programs, or wildlife conservation initiatives. This directly benefits landowners who sell environmentally valuable property to these conservation entities.

Topics ✓ Budget & Taxes ✓ Environment

Sub-Topics Income Tax Conservation Wildlife

in committee · New Jersey · Senate Jan 13, 2026

S 2607: Requires Commissioner of Education to establish matching grant program for certain school districts and schools using federal funds to increase instructional time and accelerate learning.

This bill creates a matching grant program for New Jersey public school districts, charter schools, and designated "renaissance" schools to address pandemic-related learning loss. It requires schools to use a portion of their federal American Rescue Plan (ARP) funds to implement evidence-based programs that increase instructional time and accelerate learning, with the state matching 50% of those funds. Eligible schools must demonstrate increased learning loss (via state assessment data) and submit detailed plans for interventions like extended learning time, tutoring, summer programs, or targeted academic support. The program is funded from state ARP funds, capped at $200 million, and requires annual reports on effectiveness.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Testing & Assessment

in committee · New Jersey · Senate Jan 13, 2026

S 2469: "Garden State Manufacturing Jobs Act."

This bill creates a new "Garden State Corporation" status for New Jersey manufacturing companies. To qualify, businesses must operate primarily in New Jersey, elect half their board members from employees (with equal voting rights), and include specific terms like "Garden State" in their name. Qualifying corporations receive significant tax credits: up to 60% off state corporate tax for the first five years if also certified as a benefit corporation, decreasing to 30% over nine years. The bill directly affects manufacturers choosing this status and aims to incentivize local job retention and worker representation.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Business Taxes

in committee · New Jersey · Senate Jan 13, 2026

S 1037: Makes supplemental appropriation of $1,000,000 to Division of Civil Rights.

This bill (S 1037) adds $1,000,000 in supplemental funding to the Division of Civil Rights within New Jersey’s Department of Law and Public Safety for the 2024-2025 fiscal year. The funding directly supports the Division’s work enforcing state anti-discrimination laws - including protections in employment, housing, and public accommodations - under the New Jersey Law Against Discrimination. The provision is a budgetary measure, not a policy change, and will help the agency address civil rights complaints and conduct investigations. This appropriation applies to the Division’s existing enforcement responsibilities, with no new legal requirements or eligibility changes.

Topics ✓ Budget & Taxes ✓ Housing ✓ Labor & Employment

Sub-Topics Appropriations

All budget & taxes bills