Budget & Taxes (Income Tax)

in committee · New Jersey · General Assembly May 7, 2026

A 4949: Provides gross income tax credit for volunteer first responders who incur costs for child care services.

This New Jersey bill creates a state tax credit for volunteer first responders who pay for child care services. To qualify, individuals must work at least 150 hours annually in their volunteer capacity, which includes required training time. The credit covers 50% of eligible child care costs, such as those for licensed facilities, in-home care, and after-school programs, with a maximum benefit of $5,000 per year. Recipients must submit documentation to the Division of Taxation to verify their service hours and child care expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a tax credit to volunteer first responders, offering fiscal relief and encouraging service through tax incentives.85% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · New Jersey · General Assembly May 7, 2026

A 4995: Provides gross income tax credit for certain household pet expenses.

This New Jersey bill introduces a tax credit for residents who own household pets, specifically dogs or cats kept for companionship. The legislation allows taxpayers to claim up to $300 for everyday pet expenses like food and supplies, plus an additional $600 for veterinary care, with a combined maximum credit of $900 per year. To receive this benefit, owners must file their tax returns with proof of pet ownership and receipts detailing the qualified expenses. The law explicitly excludes working animals, such as those used by law enforcement or in research facilities, from the definition of eligible pets.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a tax credit for pet expenses, offering direct tax relief to residents and reducing their tax liability.85% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · New Jersey · Senate May 11, 2026

S 4125: Allows gross income tax deduction for amounts paid for removal of lead, asbestos, sodium, chloride, and other contaminants from taxpayer's property.

This New Jersey bill allows homeowners to deduct up to $45,000 from their gross income for costs associated with removing hazardous contaminants from their residential properties. The measure specifically covers expenses related to lead and asbestos abatement, replacing lead pipes and windows, and treating private well water contaminated with sodium or chloride. To claim the deduction, taxpayers must provide affidavits from their local municipality confirming that the work was performed by certified contractors. The provision applies to all income levels and includes a retroactive option for expenses incurred between January 1, 2018, and the bill's enactment, with the tax benefit set to expire on December 31, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a gross income tax deduction for hazardous abatement costs, offering direct tax relief to homeowners and reducing their financial burden.90% confidence ✓ EnvironmentSupports EnvironmentBill provides financial incentives for removing hazardous contaminants like lead and asbestos, directly reducing pollution and protecting public health.90% confidence ✓ HousingSupports HousingBill provides tax deductions for hazardous material removal, protecting property value and health safety, which supports safe housing.85% confidence

Sub-Topics Income Tax Drinking Water

Track

in committee · New Jersey · General Assembly May 7, 2026

A 5010: Allows corporation business tax and gross income tax credits to businesses employing released nonviolent offenders.

This bill allows businesses in New Jersey to receive tax credits if they hire adults who have been released from incarceration for nonviolent crimes. The credits apply to both corporation business taxes and gross income taxes, offering a benefit equal to 15 percent of wages paid to each eligible employee, up to a maximum of $900 per person. To qualify, the offenders must not have committed violent acts or specific serious offenses, and the tax savings are limited to 50 percent of the total tax owed for the year. Any unused portion of the credit can be carried forward for up to seven years, and the law applies to wages paid after the bill is enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits to businesses hiring released nonviolent offenders, directly advancing fiscal incentives and government spending goals.90% confidence ✓ Criminal JusticeSupports Criminal JusticeBill incentivizes hiring released nonviolent offenders, directly promoting rehabilitation and reducing recidivism.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill incentivizes hiring released nonviolent offenders, expanding employment opportunities and supporting workforce reintegration.90% confidence

Sub-Topics Business Taxes Income Tax Corrections

Track

in committee · New Jersey · Senate May 11, 2026

S 4211: Increases amount of allowable New Jersey earned income tax credit from 40 percent to 50 percent of federal benefit amount.

This bill proposes to increase the New Jersey earned income tax credit from 40 percent to 50 percent of the federal earned income tax credit amount, effective for tax years beginning in 2026. The change directly affects New Jersey residents who qualify for the federal earned income tax credit, allowing them to receive a larger refundable state tax credit based on their federal eligibility. By amending the state tax code, the legislation ensures that eligible working individuals and families will calculate their state tax benefit using the new higher percentage.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases the earned income tax credit, providing tax relief and financial support to working individuals and families.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill increases the earned income tax credit, directly expanding financial benefits and support for working individuals and families.90% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · New Jersey · General Assembly Jun 30, 2026

A 5165: "End Data Center Tax Credits Act"; reduces tax credits available for Next New Jersey Program.*

This bill, titled the "End Data Center Tax Credits Act," sets a combined nine-year spending cap of $11.5 billion for various state tax credit programs, including those for economic recovery, arts, and manufacturing. It specifically reduces the amount of credits available under the Next New Jersey Program and directs $200 million of those credits to a housing agency through competitive auctions. Additionally, the legislation authorizes the Board of Public Utilities to issue tax credits for energy storage projects and creates a temporary income tax credit for certain residential electricity customers.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill caps spending and reduces tax credits, limiting state budget flexibility and defunding programs.95% confidence ✓ HousingSupports HousingBill directs $200M from tax credits to a housing agency via competitive auctions, funding housing initiatives.75% confidence ✗ TechnologyOpposes TechnologyBill reduces tax credits for data centers and energy storage, limiting funding for critical tech infrastructure.65% confidence

Sub-Topics Government Spending Income Tax Tax Credits

Track

in committee · New Jersey · General Assembly May 4, 2026

A 4871: Allows gross income tax deduction for charitable contributions made to nonprofit entities supported by State funds or subsides.

This New Jersey bill allows taxpayers to deduct charitable contributions made to nonprofit organizations that receive state funds or economic development subsidies. The deduction is limited to $10,000 for married couples filing jointly and heads of household, and $5,000 for single filers and others. Eligible nonprofits are defined as organizations that do not operate for private profit and are not part of any government, while the term "economic development subsidy" includes various forms of financial assistance like grants and loans provided to businesses. The law applies to contributions made in taxable years beginning on or after the date the bill is enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deductions for charitable contributions to nonprofits receiving state funds, promoting fiscal responsibility and supporting essential services.85% confidence

Sub-Topics Income Tax

Track

in committee · New Jersey · Senate May 4, 2026

S 4099: Provides gross income tax credit for volunteer first responders who incur costs for child care services.

This bill creates a New Jersey gross income tax credit for volunteer first responders who pay for child care services. To qualify, a volunteer firefighter or member of an emergency, ambulance, or rescue squad must complete at least 150 hours of official work or training in a tax year. Eligible taxpayers can claim a credit equal to 50 percent of their child care expenses, with a maximum benefit of $5,000 per year. The legislation requires individuals to submit documentation proving both their volunteer service hours and the costs incurred for care.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides a tax credit for volunteer first responders, offering financial relief and supporting fiscal management for essential public service workers.90% confidence

Sub-Topics Income Tax Tax Credits

Track

in committee · New Jersey · General Assembly May 4, 2026

AR 132: Urges President and Congress to exempt Social Security benefits from federal income tax.

This New Jersey Assembly Resolution urges the President and Congress to exempt Social Security benefits from federal income tax. The resolution highlights that while many states do not tax these benefits, federal law currently allows taxation of up to 85 percent of benefits for higher-income recipients. It requests that federal legislation be introduced to remove this tax burden entirely. The resolution is a formal request to the federal government and does not directly change any laws within New Jersey.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill seeks to exempt Social Security benefits from federal income tax, providing tax relief to recipients and reducing their financial burden.90% confidence

Sub-Topics Income Tax

Track

in committee · New Jersey · Senate May 4, 2026

S 4106: Excludes certain retirement savings plan contributions, withdrawals, and rollovers from gross income tax.

This bill amends New Jersey tax law to exclude certain retirement savings plan contributions, withdrawals, and rollovers from gross income. It directly affects individuals who participate in qualified retirement accounts by ensuring these specific financial activities are not counted as taxable income. The provision aligns the state's definition of gross income with federal rules regarding retirement savings, simplifying tax treatment for these transactions. By removing these items from taxable income, the bill reduces the amount of tax residents owe on their retirement-related financial moves.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by excluding retirement savings from gross income, aligning state law with federal rules to reduce tax burden on individuals.90% confidence

Sub-Topics Income Tax

Track