Budget & Taxes (Income Tax) in New Jersey

in committee · New Jersey · Senate Jan 13, 2026

S 1868: Allows certain volunteer firefighters, rescue and first aid squad members to claim $500 income tax deduction.

S 1868 allows eligible volunteer firefighters, first aid squad members, and rescue squad members in New Jersey to claim a $500 deduction from their state gross income tax. To qualify, volunteers must serve the entire tax year and meet specific duty requirements: firefighters need 60% attendance at fire alarms/drills plus Firefighter I certification, while first aid/rescue members need 10% attendance at rescue alarms/drills plus EMT certification or approved training. Fire department and squad leaders must annually verify qualifying members to the state departments of Community Affairs and Health by March 31. The deduction applies only to qualifying individuals meeting all criteria and cannot exceed $500 per tax year. The bill was introduced in the Senate on January 13, 2026, and awaits committee review.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax

in committee · New Jersey · Senate Jan 13, 2026

S 511: Allows a gross income tax deduction for certain higher education tuition and fee expenses.

S 511 allows New Jersey taxpayers with gross income of $85,000 or less to deduct qualified higher education tuition and fee expenses paid during the tax year. The deduction covers costs for the taxpayer, their spouse, or dependents enrolled as matriculated students at accredited public or private colleges or universities. It applies to expenses paid for accredited institutions recognized by the U.S. Secretary of Education. This policy change directly affects low-to-moderate income families with students in higher education.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Income Tax Higher Education Student Financial Aid

in committee · New Jersey · Senate Jan 13, 2026

S 1389: Expands eligibility for State gross income tax credit for child and dependent care expenses and increases amount of credit.

New Jersey's S 1389 expands the state's child and dependent care tax credit by raising income limits and increasing credit percentages. It raises the income cap for joint filers, heads of household, and surviving spouses from $150,000 to $250,000, while keeping the $150,000 limit for other filing statuses. The bill also increases the credit percentage across all income brackets by 10 points - for example, taxpayers earning under $30,000 will now receive 60% of the federal credit instead of 50%. The changes apply to taxable years beginning after the bill's enactment and extend eligibility to married individuals filing separately who meet federal credit requirements except for joint filing.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Income Tax Tax Credits

in committee · New Jersey · Senate Jan 13, 2026

S 1245: Establishes manufacturing machine and metal trade apprenticeship tax credit program.

This bill creates a tax credit for New Jersey manufacturers hiring apprentices in machine and metal trades. Employers can claim a credit equal to 50% of qualifying apprentices' wages, up to $7,500 per apprentice per year, for structured training programs. To qualify, apprentices must work at least 1,500 hours annually in roles like machinists or toolmakers, with defined training, wage progression, and completion leading to skilled worker status. The credit applies to both corporate business tax and individual income tax starting January 1, 2016, and is nonrefundable.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Business Taxes Income Tax Tax Credits Apprenticeships

in committee · New Jersey · Senate Jan 13, 2026

S 2428: Indexes amount of veterans' income tax exemption for inflation.

This bill (S 2428) adjusts the New Jersey veterans' income tax exemption amount to keep pace with inflation. It directly affects honorably discharged veterans who qualify under state law, increasing their current $6,000 exemption annually based on the Chained Consumer Price Index (C-CPI-U). The exemption will automatically rise each year if the C-CPI-U increases from the previous year's 12-month period ending August 31, but remain unchanged if inflation is flat. This change applies to tax years starting in 2023 and beyond.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Income Tax Tax Incentives Veteran Benefits Veteran Education Veteran Employment

in committee · New Jersey · Senate Jan 13, 2026

S 2673: Provides mortgage payment relief, income tax relief, consumer reporting protection, and eviction protection for residential property owners, tenants, and other consumers, economically impacted during time of coronavirus disease 2019 pandemic.

This bill provides temporary financial protections for New Jersey homeowners and tenants impacted by the COVID-19 pandemic. It requires mortgage lenders to grant at least 90 days of payment forbearance (a temporary pause on mortgage payments) to qualifying homeowners who lost income due to the pandemic, with an option for a second 90-day period. It also prohibits "non-essential evictions" for tenants who lost income or faced pandemic-related hardships, and prevents negative credit reporting for pandemic-related payment delays. These protections apply during the emergency period (the Governor's declared emergency plus 60 days) and cover renters and homeowners meeting income and hardship criteria.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Income Tax Mortgages Tenant Rights

in committee · New Jersey · Senate Jan 13, 2026

S 227: Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

This bill creates tax credits for New Jersey businesses that hire qualified ex-offenders. It allows a credit equal to 15% of wages paid to each qualifying employee, capped at $900 per employee annually, against both corporation business tax and gross income tax. A "qualified ex-offender" is defined as someone convicted of a first- to fourth-degree crime in New Jersey who was hired within one year of their conviction or release from incarceration. The credit is applied after other credits and cannot reduce tax liability below the statutory minimum.

Topics ✓ Budget & Taxes ✓ Criminal Justice ✓ Labor & Employment

Sub-Topics Business Taxes Income Tax Corrections

in committee · New Jersey · Senate Jan 13, 2026

S 243: Increases benefit amount under New Jersey Earned Income Tax Credit program from 40 percent to 60 percent of federal benefit amount.

This bill increases New Jersey's Earned Income Tax Credit (EITC) benefit to 60% of the federal credit amount for qualifying residents, effective for taxable years beginning January 1, 2022. It directly affects low- and moderate-income New Jersey workers and families who qualify for the federal EITC but were previously receiving only 40% of that federal benefit through the state program. The change modifies existing law to raise the state credit percentage without altering eligibility rules, meaning residents must still claim the federal EITC first to access the enhanced state credit. The credit remains refundable, providing cash payments even if the recipient owes no state income tax. This policy change expands tax relief for working individuals and families already eligible under federal guidelines.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax Tax Credits

in committee · New Jersey · Senate Jan 13, 2026

S 3056: Provides for voluntary contributions by taxpayers on gross income tax returns to support NJ SHARES.

This bill creates a voluntary contribution option on New Jersey's gross income tax returns, allowing taxpayers to direct a portion of their refund or make an additional payment to the "NJ SHARES Fund." The fund supports NJ SHARES, Inc., a nonprofit organization that provides temporary energy bill assistance to New Jersey households facing short-term financial crises. To qualify, households must not be eligible for welfare or other income-based energy programs and must have a history of paying utility bills on time. Funds collected through this mechanism will be distributed annually to help households cover urgent energy costs during temporary financial hardships.

Topics ✓ Budget & Taxes ✓ Energy

Sub-Topics Income Tax

in committee · New Jersey · Senate Jan 13, 2026

S 2577: Expands eligibility under New Jersey earned income tax credit program to allow taxpayers who are victims of domestic abuse to claim credit with filing status of married filing separately.

This bill expands New Jersey's Earned Income Tax Credit (EITC) program to include victims of domestic abuse who file as "married filing separately." It removes the requirement for these taxpayers to file jointly with an abusive spouse to qualify for the credit, which they previously lost by filing separately. To claim the credit, victims must meet three conditions: living apart from their spouse when filing, being unable to file jointly due to domestic abuse, and indicating this on their tax return. The change aligns New Jersey's EITC rules with federal requirements for domestic abuse victims, ensuring they can access the credit without forcing them to remain in unsafe situations.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax Tax Credits

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