S 3214 creates the "New Jersey Earn and Learn Program" to provide tax credits for employers offering structured apprenticeships and paid internships that lead to permanent jobs. Employers receive a $3,000 tax credit per enrolled individual (apprentice or intern) for the first year, with an additional $1,000 available for small businesses, for enrollees from underrepresented groups, or if the enrollee secures full-time employment after completing the program. The program requires participants to maintain full-time employment for six months post-program and limits participation to three years per individual. These tax credits reduce the employer's corporation business tax or gross income tax.
This bill extends New Jersey's gross income tax medical expense deduction to cover costs for collecting and storing umbilical cord blood from a taxpayer's biological child or dependent's biological child. It specifically applies to services provided by licensed providers meeting Department of Health standards (N.J.A.C.8:8-13.10), making these costs deductible like other medical expenses. The deduction applies whether the banking is for preventative health purposes or immediate use, but excludes services for treating existing medical conditions. This change directly affects New Jersey taxpayers who use qualified cord blood banking services.
This bill would allow New Jersey disabled veterans to deduct up to $5,000 annually from their gross income for service animal expenses, including purchasing, training, and maintenance costs like food, grooming, and veterinary care. To qualify, a veteran must be a New Jersey resident honorably discharged from military service with a service-connected disability as confirmed by the U.S. Veterans Administration. The deduction applies to expenses not already covered by existing medical expense deductions and requires submitting proof of eligibility to the Division of Taxation. It will take effect for tax returns filed for the 2024 tax year and beyond.
This bill provides New Jersey corporations with a tax credit equal to 15% of wages paid to qualified community health workers (up to $2,500 per worker) for both corporation business tax and gross income tax. To qualify, employers must apply to the Commissioner of Health for certification that an employee meets specific criteria: working at least 10 hours weekly, completing a state-approved training program, and not being an independent contractor. The credit is limited to 50% of tax liability per year and may be carried forward if unused. It directly affects New Jersey businesses hiring community health workers - professionals who connect underserved communities to healthcare resources and educate providers about access barriers.
New Jersey's S 572, the Caregiver's Assistance Act, provides a refundable tax credit to residents caring for eligible seniors. It allows qualifying caregivers earning under $100,000 (or $50,000 if filing separately) to claim a credit equal to 22.5% of up to $3,000 in annual care expenses - capped at $675 per year - covering services like home health care, adult day care, and home modifications. The credit applies to seniors aged 60+ (or 50+ with disability benefits) who meet income thresholds, and it is refundable, meaning caregivers can receive cash back if the credit reduces their tax liability to zero. Multiple caregivers sharing responsibility for the same senior must split the credit equally unless they agree otherwise in writing.
S 1846 provides a $250 deduction from gross income for New Jersey taxpayers serving full-time in the military on active duty for the entire taxable year. This directly affects active-duty military members who reside in New Jersey and meet the full-year service requirement, potentially reducing their state tax liability. The deduction applies to taxable years beginning after the next January 1 following enactment, with the bill taking effect immediately upon passage. The sponsor notes it would impact approximately 7,669 active-duty military personnel in New Jersey as of 2017, based on Department of Defense data.
This bill changes New Jersey tax rules for businesses regarding punitive damages. It prevents corporations and business owners from deducting punitive damages paid in legal settlements or judgments as a business expense. Instead, the amount paid (or covered by insurance) must be included in the business's taxable income. The law applies to both the corporation business tax and gross income tax for taxable years starting after its effective date.
This bill excludes capital gains from the sale of company shares (employer securities) by small New Jersey businesses (fewer than 500 employees, not publicly traded, with headquarters in New Jersey) to employee stock ownership plans (ESOPs), New Jersey S corporations owned by ESOPs, or worker-owned cooperatives. It applies when the buyer ends up owning at least 30% of the business after the sale, directly benefiting employees who gain ownership stakes. The exclusion applies to the capital gains portion of these sales, reducing taxable income for affected employees. The law takes effect immediately for tax years starting after its enactment.
S 1903 establishes the New Jersey Military Family Relief Fund, a permanent fund in the State Treasury funded by voluntary taxpayer contributions designated on state income tax returns. The fund provides grants of up to $2,500 to cover essential expenses like food, housing, and medical costs for New Jersey residents who are active-duty military members (including reserves), National Guard members, veterans (with honorable discharge), or surviving spouses of eligible service members. To qualify, applicants must be NJ residents for at least 12 consecutive months, demonstrate financial hardship, and cannot receive more than one grant within a 12-month period. The Adjutant General of the Department of Military and Veterans Affairs administers the program, determining eligibility and issuing grants from available funds.
This bill (S 1406) would amend New Jersey's tax code to exclude contributions to certain retirement savings plans from taxable gross income. It directly affects New Jersey residents who contribute to qualifying retirement accounts, such as 401(k)s or IRAs, by reducing their taxable income for state tax purposes. The key provision changes the definition of "New Jersey gross income" under N.J.S.54A:5-1 to exclude these specific retirement contributions. This would lower state tax liability for eligible taxpayers without altering federal tax treatment. The bill is currently in the introduction stage (2026) and has not yet been debated or voted on.
