This New Jersey bill increases the state gross income tax deduction for honorably discharged veterans from $6,000 to $9,000. The change applies to veterans who served in the U.S. Armed Forces, reserve components, or the New Jersey National Guard and affects their calculation of state tax liability starting with the 2026 tax year. Additionally, the bill mandates that the $9,000 deduction amount be adjusted annually for inflation beginning in 2027 based on changes in the Chained Consumer Price Index. This adjustment ensures the tax benefit maintains its value over time without requiring new legislation each year.
This bill modifies New Jersey's gross income tax by restricting the alternative business calculation adjustment for taxpayers with higher incomes. It allows business owners to net losses from specific income categories, such as rents or royalties, against gains to determine their taxable business income. Under the new rules, effective for tax years starting in 2026, taxpayers earning $500,000 or less can still deduct 50% of their business profit increase, while those earning between $500,000 and $1 million can only deduct 25%. The bill completely eliminates this tax deduction for individuals with gross income exceeding $1 million.
This bill proposes to increase the gross income tax rate for individuals in New Jersey whose taxable income exceeds $2,000,000. It directly affects high-income earners by amending the state tax code to apply a higher percentage to income above this specific threshold. The legislation would modify the existing tax tables to ensure that only the portion of income surpassing $2 million is taxed at the new, elevated rate. This change aims to generate additional revenue from the wealthiest taxpayers while leaving tax rates for lower and middle-income earners unchanged.
This bill creates a pilot program to help businesses bring New Jersey resident employees back to the state by offering financial grants. To qualify, companies must have at least 25 full-time employees and be primarily located outside New Jersey, with a total annual funding cap of $35 million. The grant amount is generally limited to the state income tax withheld from the relocated workers, though it can be higher if the move is projected to generate significantly more tax revenue for the state. Additionally, the legislation allows the state to intervene and provide tax credits to residents who were wrongly denied refunds by other states for taxes paid on income earned while working in New Jersey.
This bill increases the percentage of the federal earned income tax credit that New Jersey residents receive, raising the state match to 45% for tax years starting in 2026. It also expands eligibility by allowing adults aged 18 and older who are ineligible for the federal credit due to age requirements to still qualify for the state program. Additionally, the legislation permits married individuals who are victims of domestic abuse to file separately while still receiving the credit, removing the usual requirement to file jointly.
This bill establishes a new formula for distributing State aid to public school districts in New Jersey, directly affecting how funding is allocated to these districts. The key mechanism calculates a per-pupil aid amount by dividing the total projected State income tax revenue by the total statewide student enrollment, then multiplies that figure by each district's projected enrollment to determine its specific funding. This approach replaces previous allocation methods with a system based on projected enrollment and total income tax revenue, ensuring aid distribution is tied to these specific financial and demographic metrics.
This bill amends New Jersey law to increase the state Earned Income Tax Credit benefit from 40 percent to 60 percent of the federal amount, starting with the 2022 tax year. The change directly affects low- to moderate-income residents who file state tax returns and are eligible for the federal Earned Income Tax Credit. By raising the multiplier, the legislation ensures that qualifying individuals receive a larger refundable tax credit against their state income tax liability. The bill takes effect immediately upon passage, expanding financial support for workers and families without altering the underlying federal eligibility requirements.
This bill directs the New Jersey State Board of Education to create a program that covers the fees for high school equivalency exams for low-income individuals, defined as those living in households earning 150 percent or less of the federal poverty guidelines. To fund these payments, the legislation establishes a dedicated, nonlapsing fund within the Department of Education that accepts public donations and state appropriations. The bill also provides tax deductions for both individual and corporate taxpayers who contribute to this fund, making it easier for donors to support the initiative.
This bill proposes to increase the New Jersey child tax credit for families with children under six years old and to expand eligibility to include children aged six through 11. Under the new provisions, taxpayers with an income of $30,000 or less would receive a $2,000 credit for each child under six, while those with children aged six to 11 would receive a $1,000 credit, with amounts gradually decreasing as income rises to $80,000. The legislation also sets a maximum total credit limit of $2,500 per taxpayer and clarifies that the credit is refundable if it exceeds the tax owed. These changes would apply to tax years beginning on or after January 1, 2026, for resident New Jersey taxpayers.
This New Jersey bill increases the state gross income tax deduction for veterans from $6,000 to $9,000. To qualify, individuals must have been honorably discharged or released under honorable circumstances from active duty in the U.S. Armed Forces, reserve components, or the New Jersey National Guard. The legislation also mandates that the $9,000 deduction amount be adjusted annually for inflation starting in tax year 2027 based on the Chained Consumer Price Index. These changes apply to taxable years beginning on or after January 1, 2026.
