Budget & Taxes in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

S 913: Provides tax credits equal to cost of Jersey Fresh products purchased by breweries and wineries to be used in production of beer or wine.

This bill provides tax credits to New Jersey breweries and wineries for purchasing Jersey Fresh products used in production. Businesses can claim a credit equal to the cost of qualifying Jersey Fresh commodities (verified through Department of Agriculture documentation), up to $10,000 per tax period. To qualify, applicants must submit receipts, verification of Jersey Fresh purchases, and an affidavit confirming the products were used in production. Unused credits may be carried forward for up to 20 years. The credit applies to both corporation business tax and gross income tax liabilities.

Topics ✓ Budget & Taxes

Sub-Topics Business Taxes Income Tax Procurement

in committee · New Jersey · Senate Jan 13, 2026

S 2911: "School Property Tax Relief Trust Fund Act"; appropriates $2 billion.

This bill creates a $2 billion "School Property Tax Relief Trust Fund" using state funds and federal pandemic recovery money (like ARP funds). It directly affects New Jersey public school districts by providing one-time grants to cover capital projects, teacher hiring, and wage/benefit increases. School districts receiving grants must choose between a lump sum or 5-year payments, cannot raise their property tax levy for five years, and must submit spending-reduction plans (like consolidating services) to qualify for preference. The fund is designed to be permanent through investment, with strict rules to maintain long-term viability.

Topics ✓ Budget & Taxes ✓ Education ✓ Labor & Employment

Sub-Topics Property Tax State Budget School Funding Teachers

in committee · New Jersey · Senate Jan 13, 2026

S 135: Provides gross income tax deduction for certain E-ZPass tolls paid.

This bill allows New Jersey residents with an E-ZPass account to deduct up to $1,000 annually from their gross income tax for tolls paid on eligible toll roads and bridges (including Delaware River crossings and Port Authority routes), provided total E-ZPass tolls exceed $1,000 in a year. It excludes fines, administrative fees, employer reimbursements, and tolls already deductible as business expenses under federal or state tax rules. The deduction applies to tolls paid for personal vehicles operated by the taxpayer or household members on New Jersey toll roads or connecting interstate bridges/tunnels. The bill takes effect for taxable years beginning January 1, 2020.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax

in committee · New Jersey · Senate Jan 13, 2026

S 708: Concerns assessment of farmland for property tax purposes.

This bill amends New Jersey's Farmland Assessment Act to clarify when farmland owners face "roll-back taxes" (additional taxes) after stopping agricultural use. It states that merely ceasing farming activity - without actively converting the land to non-farm use - will not trigger these taxes. Roll-back taxes, calculated as the difference between farmland tax rates and standard property tax rates for the current year and the two prior years, apply only if the land is actively converted to non-agricultural use. The bill also establishes a hardship exemption process, allowing farmers to petition for relief if temporary disruptions (e.g., due to weather or economic hardship) prevent ongoing farming, with assessors considering factors like the owner’s intent to return to farming. It directly affects New Jersey landowners who qualify for agricultural property tax assessments under the 1964 Act.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

in committee · New Jersey · Senate Jan 13, 2026

S 1217: Establishes a manufacturing reinvestment account program to incentivize capital investment and workforce training in New Jersey with income tax rate reductions, deferrals, and accelerated deductions.

This bill creates a tax incentive program for New Jersey manufacturers. It allows qualifying manufacturers (those with 50 or fewer employees in good tax standing) to deduct up to $100,000 annually from their taxable income for deposits into a special "manufacturing reinvestment account." Funds in the account earn tax benefits: if used for machinery/equipment or workforce training at their New Jersey facility, the earnings are taxed at half the standard rate. The program applies for five consecutive years, with unused funds taxed at full rate after that.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Income Tax Tax Incentives Workforce Development

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 & Taxes ✓ Labor & Employment

Sub-Topics Business Taxes Income Tax Tax Credits

in committee · New Jersey · Senate Jan 13, 2026

S 2715: Imposes 10 percent electric public utility windfall surtax on taxpayers with allocated taxable net income in excess of $10 million under CBT.

This bill imposes a 10% surtax on electric public utilities in New Jersey with annual profits exceeding $10 million. It directly affects large electricity providers that transmit and distribute power to end users within the state. All revenue from this surtax (excluding constitutionally dedicated funds) must fund state utility assistance programs, such as those helping low-income households with energy costs. The bill also prohibits these utilities from raising customer rates to cover the surtax cost.

Topics ✓ Budget & Taxes ✓ Energy

in committee · New Jersey · Senate Jan 13, 2026

S 1708: "Zero-Based Budget Act;" requires State Treasurer to develop and integrate certain zero-based budgeting practices and procedures in preparation and submission of Governor's annual budget message.

This bill requires New Jersey's State Treasurer to create a zero-based budgeting process for the Governor's annual budget. It directly affects all state spending agencies that submit budget requests, mandating they justify every funding request from scratch - without assuming prior year allocations - by detailing goals, activities, legal authority, cost estimates, and impact assessments. Key provisions include requiring agencies to submit itemized spending justifications, evaluate minimum service levels, and rank programs based on their ability to meet agency objectives. The process must be implemented for budgets starting July 1, 2012, ensuring each tax dollar is evaluated for cost-effectiveness and necessity.

Topics ✓ Budget & Taxes

Sub-Topics Government Spending State Budget

in committee · New Jersey · Senate Jan 13, 2026

S 1603: Establishes 90-day State tax amnesty period ending no later than January 15, 2026; dedicates revenues collected during tax amnesty period for Stabilization Aid to school districts; appropriates up to $15 million.

S 1603 creates a 90-day tax amnesty period ending January 15, 2026, allowing New Jersey taxpayers with overdue state taxes (for returns due between September 2017 and January 2025) to pay with only half the interest due as of November 1, 2025 and without penalties like late fees. Taxpayers must pay the full tax amount plus reduced interest to participate, and they forfeit all rights to appeal the tax liability. All revenue collected during this period will fund a dedicated Stabilization Aid Account, which provides financial support to school districts experiencing reduced state school aid compared to the prior year. The bill also allocates up to $15 million from this account to cover administrative costs of running the amnesty program.

Topics ✓ Budget & Taxes ✓ Education

in committee · New Jersey · Senate Jan 13, 2026

SR 35: Urges federal government to repeal state and local tax deduction caps.

This Senate Resolution (SR 35) urges the federal government to repeal the $10,000 cap on state and local tax (SALT) deductions established by the 2017 Tax Cuts and Jobs Act. It specifically addresses New Jersey residents, who historically claimed the SALT deduction (41% of filers), face high property taxes (averaging $9,112 in 2020), and are impacted by the cap’s restriction on deducting state/local taxes. The resolution highlights New Jersey’s status as a "donor state" (paying more in federal taxes than received in funding) and notes that the cap has exacerbated financial strain amid the pandemic, with many residents relocating to lower-tax states. As a non-binding resolution, it does not change law but formally requests federal action.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax State Budget

All budget & taxes bills