Budget & Taxes (Tax Incentives) in New Jersey

in committee · New Jersey · General Assembly Jan 13, 2026

A 1210: Concerns UEZ assistance fund expenses by specifically including certain property acquisition under definition of "qualified assistance fund expense."

This bill explicitly adds property acquisition (such as buying or leasing land) to the list of expenses eligible for funding under New Jersey's Urban Enterprise Zone (UEZ) assistance program. It amends the definition of "qualified assistance fund expense" to include these costs, clarifying that they can now be covered by the fund for businesses in enterprise zones. This change directly affects the UEZ Authority and participating municipalities, allowing them to use assistance funds for property-related projects like business expansion or development. The amendment provides clear guidance on fund usage without altering other existing provisions of the UEZ program.

Topics ✓ Budget & Taxes

Sub-Topics Tax Incentives

in committee · New Jersey · General Assembly Jan 13, 2026

A 273: Requires State reimbursement to municipalities of cost of disabled veterans' total property tax exemption.

This bill requires the state of New Jersey to reimburse municipalities 102% of the property tax costs they incur from granting disabled veterans a full property tax exemption. It directly affects disabled veterans (who receive the exemption) and local governments (which bear the tax loss but now get state reimbursement). Key mechanisms include annual certification by tax assessors and county boards of the number and total dollar amount of exemptions, with the state paying the full cost based on these reports. The bill amends existing tax law to clarify that these exemptions are excluded from taxable value calculations but still trigger state reimbursement.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Property Tax Tax Incentives

in committee · New Jersey · Senate Mar 2, 2026

S 3707: Establishes EDA grant program to support increased business expenses incurred by certain businesses impacted by certain public highway projects; provides 50 percent sales and use tax exemption in impacted municipalities; appropriates $1 million.

This bill establishes a grant program administered by New Jersey's Economic Development Authority (EDA) to reimburse small retail businesses (with 50 or fewer employees) for increased operating costs caused by public highway projects. It also provides a 50% sales and use tax exemption for eligible businesses in municipalities affected by these projects. The grants cover the difference between a business's normal operating expenses and the increased costs during the project's duration, requiring documentation of both periods. The program is funded by a $1 million appropriation, with applications reviewed by the EDA using criteria defined in the bill.

Topics ✓ Budget & Taxes ✓ Transportation

Sub-Topics Appropriations Sales Tax Tax Incentives Roads & Highways

in committee · New Jersey · Senate Mar 2, 2026

S 3708: Provides 50 percent sales and use tax exemption for certain businesses in impacted municipalities during ongoing public highway project.

This bill provides a 50% exemption from New Jersey's sales and use tax for qualifying retail businesses operating in municipalities affected by ongoing public highway projects. It directly affects small businesses with a fixed location (such as shops or charter boat services) located in areas where highway construction, repair, or maintenance is underway. Businesses must apply to the Division of Taxation for approval, and the exemption applies only during the "relief period" - the time between a project's start and completion. The exemption automatically ends when the highway project concludes, as notified by the Commissioner of Transportation to the Tax Division.

Topics ✓ Budget & Taxes ✓ Transportation

Sub-Topics Sales Tax Tax Incentives Roads & Highways

in committee · New Jersey · General Assembly Jan 13, 2026

A 3437: Requires DHS to develop incentives to encourage private investment in child care deserts.

This bill requires New Jersey's Commissioner of Human Services to create financial incentives within 90 days to encourage private investment in childcare facilities located in "child care deserts" - areas where demand for quality childcare exceeds available supply, as defined by the state. The incentives may include tax credits, tax exemptions, loan guarantees, and assistance with hiring and training staff. The program must coordinate with multiple state agencies, including the Economic Development Authority and Treasury, and seek federal waivers to maintain funding for existing childcare subsidy programs. It directly affects private childcare providers seeking to expand in underserved areas and aims to increase access to childcare for families in those communities.

Topics ✓ Budget & Taxes ✓ Labor & Employment

Sub-Topics Tax Incentives

in committee · New Jersey · General Assembly Jan 13, 2026

A 232: Provides research and development tax credit under gross income tax.

This bill (A 232) creates a 10% tax credit against New Jersey's gross income tax for businesses that spend money on research and development (R&D) activities conducted within New Jersey. It directly affects companies subject to New Jersey's gross income tax that incur qualified R&D expenses or make basic research payments, including those that previously couldn't claim the federal R&D credit. The credit is calculated similarly to the federal version but only applies to R&D done in New Jersey, and it cannot be used for expenses already covered by other tax benefits. Unused credits can be carried forward for up to seven years. The goal is to incentivize in-state R&D investment to support technological and economic growth.

Topics ✓ Budget & Taxes ✓ Technology

Sub-Topics Income Tax Tax Credits Tax Incentives

in committee · New Jersey · General Assembly Jan 13, 2026

A 2333: Establishes the "Neighborhood Scholar Revitalization Pilot Program."

This bill establishes a pilot program in four New Jersey cities (Camden, Trenton, Jersey City, and Paterson) to help college graduates with student loan debt relocate to targeted neighborhoods. Qualified participants (with at least $7,000 in student debt) who commit to living in designated residential areas for 24 months receive $7,000 in student loan reimbursement ($3,500 per year). Targeted neighborhoods must be in census tracts with median household income at or below 60% of the regional median. The program is limited to 200 participants per city and will be funded through business tax credits and existing enterprise zone funds, with a report due after three years evaluating its effectiveness.

Topics ✓ Budget & Taxes ✓ Housing

Sub-Topics Business Taxes Tax Incentives

in committee · New Jersey · Senate Feb 9, 2026

S 3407: Designates Hackensack City as urban enterprise zone.

This bill designates Hackensack City as an urban enterprise zone under New Jersey law. It directly affects businesses operating within Hackensack that meet eligibility criteria, such as hiring residents from the zone or low-income individuals. The bill amends existing law to formally include Hackensack in the list of designated urban enterprise zones, allowing qualifying businesses to access tax benefits previously available in such zones. This is a procedural designation, not a new policy, and does not change existing tax provisions or create new obligations. The designation aligns Hackensack with other municipalities already recognized under the Urban Enterprise Zone program.

Topics ✓ Budget & Taxes

Sub-Topics Tax Incentives Tags Economic Development

in committee · New Jersey · General Assembly Feb 19, 2026

A 4426: Establishes EDA grant program to support increased business expenses incurred by certain businesses impacted by certain public highway projects; provides 50 percent sales and use tax exemption in impacted municipalities; appropriates $1 million.

This bill establishes a grant program administered by the New Jersey Economic Development Authority (EDA) to reimburse small retail businesses for increased operating costs caused by public highway projects. It specifically targets businesses with 50 or fewer employees located in areas where highway construction blocks traffic or access (called "impacted construction zones"). The grants cover the difference between a business's normal pre-project costs and its actual costs during the project period, based on equivalent business days. Additionally, the bill provides a 50% sales and use tax exemption for businesses in affected municipalities and appropriates $1 million to fund both programs.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax Tax Incentives

in committee · New Jersey · General Assembly Jan 13, 2026

ACR 11: Proposes constitutional amendment authorizing municipalities to provide partial property tax exemption to certain first responders disabled as result of World Trade Center recovery medical condition.

ACR 11 proposes a constitutional amendment allowing New Jersey municipalities to offer a partial property tax exemption on the primary residence of eligible 9/11 first responders. It would specifically apply to police officers, firefighters, and EMTs disabled due to medical conditions certified as related to their work at the World Trade Center site after the 2001 terrorist attack. The exemption would cover the first 15% of a home's assessed value, with municipalities required to enact it via local ordinance after the Legislature passes implementing legislation. The state would not reimburse municipalities for lost tax revenue from this exemption. This amendment requires voter approval before any such local ordinances can be adopted.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Revenue Tax Incentives

All budget & taxes bills