New Jersey's S 1852 provides tax credits to small businesses (fewer than 25 employees and under $1 million annual revenue) and farm employers to offset increased labor costs from the state's minimum wage hike enacted in 2019. The bill allows a credit equal to the difference between the new minimum wage and the previous rate, multiplied by hours worked, for both corporate business tax and gross income tax. Credits are capped at $12,500 per employee and can be carried forward for up to 10 years. This directly affects small business owners and farm employers paying hourly wages who face higher payroll expenses due to the 2019 minimum wage increase.
This bill excludes reenlistment and voluntary extension bonuses for U.S. Armed Forces members from New Jersey's gross income tax. It amends the state tax code to specifically remove these bonuses from taxable income, applying to all active-duty and reserve service members, including New Jersey National Guard members on State active duty. The policy directly affects military personnel who receive such bonuses as part of their service compensation. This change provides tax relief by reducing the taxable income of these service members for New Jersey tax purposes.
This bill, S 954, proposes to reduce New Jersey's individual income tax rates by approximately 10% over three years through phased adjustments to the state's tax brackets. It directly affects New Jersey residents who pay state income tax, particularly those in higher income brackets where the largest rate reductions apply. Key mechanisms include lowering tax rates across all income levels - such as reducing the top rate from 8.97% to 8.67% for incomes over $500,000 - spread across multiple tax years starting in 2026. The bill aims to provide gradual tax relief, though the exact percentage reduction varies by income tier rather than applying uniformly. (Note: This is a proposed bill introduced in 2026; it has not yet been enacted.)
This bill provides tax incentives for historic diners and restaurants in New Jersey that meet specific criteria. To qualify, an establishment must have operated continuously for at least 25 years (including pandemic-related closures), qualify as a small business, comply with health/safety rules, and (for restaurants) be family-owned. The bill creates an annual registry managed by the Division of Travel and Tourism, granting approved operators a 12-month sales tax exemption on prepared food/beverages sold for on-site consumption and corporation business/gross income tax credits. These benefits directly support qualifying historic eateries by reducing their tax burden.
S 2945 creates a New Jersey tax credit for low-to-moderate income residents to offset medical insurance costs. It allows individuals with gross income under $65,000 (single or married filing separately) or $130,000 (married filing jointly or head of household) to claim a credit equal to the difference between their medical insurance costs (premiums plus deductibles) and 8.5% of their income. The credit cannot be claimed for expenses already deducted under existing tax rules. The bill requires the Division of Taxation to coordinate with the Health Department to advertise the credit's availability. It takes effect for taxable years beginning after its enactment date.
This bill provides New Jersey employers with a temporary tax credit of 50% (up to $50,000 per year) against corporation business and gross income taxes for costs spent building, renovating, or improving real property used to operate on-site child care centers. The credit directly affects businesses that construct or maintain facilities primarily serving the children of their own employees. To qualify, employers must commit to operating the child care center for 60 consecutive months and enter a binding agreement with the state director to verify expenses and maintain compliance. The credit is available for three calendar years following the bill's effective date and requires documentation to prevent misuse.
SR 15 is a New Jersey Senate resolution urging the federal government to exempt Social Security benefits from federal income tax. It directly affects all Social Security recipients, including retirees (90% of seniors aged 65+), disabled workers, survivors, and dependents, whose benefits currently make up about 30% of their income. The resolution notes that federal taxation of these benefits began in 1984, with income thresholds unchanged since the 1990s, and states that 41 states and the District of Columbia already exempt Social Security from state income tax. The resolution does not create new law but formally requests congressional action to eliminate this federal tax.
This bill creates a 35% tax credit against New Jersey corporation business and gross income tax for production companies staging pre-Broadway or post-Broadway theater shows at qualifying venues (350+ seats). The credit covers eligible production costs like sets, costumes, payroll, and advertising, up to a $10 million annual cap. Companies must apply to the New Jersey Economic Development Authority with details about their production, venue, and expenses, and the credit cannot reduce taxes below the state’s minimum. It directly affects theater production companies seeking to offset costs for shows targeting or following Broadway runs.
This bill creates a $1,500 nonrefundable state income tax credit for New Jersey residents who meet specific criteria. To qualify, a taxpayer must have graduated from both a New Jersey high school and a New Jersey institution of higher education (public or private nonprofit) with a 3.5+ GPA, then work full-time (25+ hours/week) for a New Jersey-based employer within two years of graduation. The credit applies for the first five consecutive tax years of eligible employment, but cannot reduce tax liability below zero. It directly targets recent NJ college graduates seeking to remain in-state for employment, aiming to incentivize retention in the state's workforce.
S 659 provides a 35% tax credit for New Jersey taxpayers who install solar energy systems on their property, directly affecting residential homeowners, apartment building owners, and businesses. The credit covers 35% of qualified solar equipment costs (purchase, installation, or long-term leases), with annual limits of $5,000 for single-family homes, $350 per apartment unit, and $500,000 for commercial or industrial properties. Taxpayers must apply for certification from the Environmental Protection Commissioner, and unused credits can be carried forward for up to seven years. The total annual tax credit funding is capped at $25 million across all eligible properties.
