Budget & Taxes (Income Tax)

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

A 4851: Provides gross income tax exclusion for all compensation earned by college athletes for use of name, image, or likeness.

This New Jersey bill proposes to exclude compensation earned by college athletes for the use of their name, image, or likeness from state gross income taxes. It directly affects student-athletes enrolled at four-year universities located within the state who earn money from these rights while participating in intercollegiate sports. Under the legislation, any income a taxpayer receives for such purposes during a taxable year would not be counted as taxable income. The law would apply retroactively to taxable years beginning after the date of enactment, allowing athletes to keep this specific earnings stream free from state taxation.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by excluding athlete NIL income from state gross income taxes, reducing tax liability for taxpayers.85% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Mar 5, 2026

S 3730: Allows gross income tax deduction for functional improvements and home repairs made to taxpayer's primary residence.

This bill allows New Jersey taxpayers to deduct the cost of functional improvements and repairs to their primary residence from their gross income. It applies to homeowners and renters, covering expenses that materially improve a home's operating condition or prolong its useful life, as well as costs to keep the home in efficient working order. The deduction excludes aesthetic remodels or changes that adapt a home for new uses, and married couples filing separately can each claim half of the shared expense. The measure takes effect for taxable years beginning after the bill is enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deduction for home improvements, offering tax relief to taxpayers and reducing their taxable income.85% confidence ✓ HousingSupports HousingBill provides tax deductions for home improvements and repairs, supporting homeownership and housing maintenance.85% confidence

Sub-Topics Income Tax

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in committee · New Jersey · Senate Mar 12, 2026

S 3874: Allows distributions from NJBEST account to Roth IRA as qualified withdrawals and excludes such distributions from gross income tax.

This bill allows individuals to move funds from their New Jersey Better Educational Savings Trust (NJBEST) accounts directly into Roth Individual Retirement Accounts (IRAs) without paying state income tax on those distributions. The legislation amends existing state laws to classify these transfers as qualified withdrawals, meaning they are treated the same as other tax-advantaged educational savings distributions. By explicitly excluding these Roth IRA rollovers from gross income tax, the bill provides an additional flexibility option for account holders who wish to consolidate their educational savings with retirement funds. The changes directly affect NJBEST account holders who may want to use their educational savings for retirement planning purposes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing tax-free rollovers from NJBEST to Roth IRA, reducing state tax burden on individuals.90% confidence

Sub-Topics Income Tax

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in committee · New Jersey · General Assembly Mar 23, 2026

A 4806: Establishes ReadyReturn program; requires Taxation to prepare initial tax filing for certain taxpayers; requires several State agencies to use tax data to facilitate identification and enrollment for certain social services programs; makes an appropriation.

This bill creates the ReadyReturn program in New Jersey, which allows the Division of Taxation to prepare initial income tax filings for low-income residents who typically do not file because their earnings fall below the required threshold. The program aims to help these individuals access the Earned Income Tax Credit and other benefits by removing barriers related to form access, document delivery, and filing complexity. Additionally, the legislation requires several state agencies to use existing tax data to streamline identification and enrollment for various social services programs, reducing the burden on applicants who must currently complete separate applications. The bill also includes an appropriation to fund these initiatives, with the goal of increasing tax compliance and improving access to essential safety net resources.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates ReadyReturn program to help low-income residents access tax credits and benefits, requiring state agencies to use tax data for social services enrollment, advancing fiscal assistance for vulnerable populations.85% confidence

Sub-Topics Appropriations Income Tax Tax Credits

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in committee · New Jersey · Senate Mar 12, 2026

S 3930: Provides gross income tax credit for certain homeschooling expenses.

This bill creates a non-refundable tax credit for New Jersey residents who homeschool their children or dependents, allowing eligible taxpayers to claim up to $1,000 per child for qualified educational expenses, with a maximum total credit of $3,000 per household. To qualify, the taxpayer's gross income must not exceed $150,000, and the credit applies to expenses such as textbooks, educational software, curriculum rentals, and library memberships, while excluding items like furniture, basic school supplies, and internet fees. Married couples filing separately can each claim half of the total credit amount for jointly incurred expenses, and the credit can only be applied to reduce tax liability to zero, not result in a refund. The legislation takes effect for taxable years beginning on or after January 1 following its enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit for homeschooling expenses, offering tax relief to middle-income families and supporting educational choices.85% confidence ✓ EducationSupports EducationBill provides tax credit for homeschooling expenses, expanding educational access and supporting families who choose alternative education methods.85% confidence

Sub-Topics Income Tax Tax Credits Curriculum Libraries

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in committee · New Jersey · Senate Mar 5, 2026

S 3797: Increases benefit amounts and expands eligibility under New Jersey earned income tax credit program.

This bill increases benefit amounts and expands eligibility for New Jersey's Earned Income Tax Credit (EITC) program, directly affecting low-to-moderate income residents of the state. It raises the percentage of the federal EITC that New Jersey matches, increasing the credit rate to 45% for tax years beginning on or after January 1, 2026. The legislation also allows individuals aged 18 and older who cannot claim a qualifying child for the federal EITC due to age restrictions to still qualify for the state credit, and it permits married taxpayers who are victims of domestic abuse to file separately without meeting the usual joint filing requirement.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases EITC benefits and expands eligibility, providing tax relief to low-to-moderate income residents and strengthening the state's social safety net program.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill increases EITC benefits and expands eligibility, directly supporting low-to-moderate income workers by enhancing their financial benefits and economic security.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · General Assembly Mar 10, 2026

A 4607: Allows gross income tax refunds to be credited against taxpayer's delinquent local property taxes.

This bill allows New Jersey taxpayers to have their state gross income tax refunds automatically applied to any overdue local property taxes they owe. It directly affects residents who receive tax refunds, earned income tax credits, or homestead rebates while having delinquent property tax accounts. The key mechanism requires the state to withhold these refunds and send the money to municipal tax collectors to pay off the debt, with child support obligations taking priority over other debts. Local tax collectors must identify delinquent taxpayers and report them to the state, which then notifies affected residents about the withheld amounts.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allows tax refunds to offset property tax debt, providing relief to taxpayers and ensuring municipal tax collection without increasing tax rates.75% confidence

Sub-Topics Income Tax Property Tax

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in committee · New Jersey · Senate Mar 19, 2026

S 4014: Allows gross income tax credit for certain child care staff and registered family day care providers.

This bill creates a state income tax credit for child care staff and registered family day care providers in New Jersey to help offset low wages in the industry. It allows eligible workers who have been employed for at least six months to receive a tax credit ranging from $500 to $1,500 depending on their annual income and the ages of children they care for. The credit is calculated based on income brackets, with lower-income workers receiving higher amounts, and provides refunds for those whose tax liability is reduced to zero. To qualify, employees must spend at least half their time directly supervising children under 30 months old to receive the maximum credit for that age group. The legislation also specifies how any unused credit amounts can be refunded or carried forward to the next tax year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits to low-income child care workers, offering financial relief and supporting essential workforce in early childhood education.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax credits to child care workers to offset low wages, directly supporting worker compensation and benefits in the labor sector.90% confidence

Sub-Topics Income Tax Tax Credits

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in committee · New Jersey · Senate Mar 12, 2026

S 3928: Establishes tax credit for portion of qualifying educational expenditures made by taxpayer on behalf of child.

This New Jersey bill creates a state tax credit for parents who pay for certain educational expenses for their dependent children. The credit allows taxpayers to receive 25% of qualifying educational expenditures, up to a maximum of $500 per child, which can be applied against their New Jersey gross income tax. Qualifying expenses include tuition at nonpublic schools, required school supplies, instructional materials, extracurricular activity fees, and transportation costs paid directly to the school, while explicitly excluding tutoring, standardized test fees, and everyday clothing. The measure applies to taxable years beginning on or after January 1, 2023, and is intended to provide financial relief to families utilizing private education options.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit for educational expenses, offering tax relief to families and supporting education funding through state tax mechanisms.85% confidence ✓ EducationSupports EducationBill provides tax credit for educational expenses, increasing financial support for families and expanding access to education options.90% confidence

Sub-Topics Income Tax Tax Credits Curriculum Higher Education School Choice

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in committee · New Jersey · General Assembly Mar 10, 2026

A 4604: Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

This bill allows businesses in New Jersey to receive tax credits for employing individuals with developmental disabilities, including those with intellectual disabilities, autism, cerebral palsy, and other neurological conditions. The credits apply to both corporation business tax and gross income tax, providing 40% of the first $6,000 in wages paid to each qualified employee, up to a maximum of $2,400 per person per year. Businesses must meet specific eligibility criteria, and the total credits combined with other tax benefits cannot exceed 50% of the tax liability owed. The legislation also includes provisions to prevent abuse, such as denying credits to companies that replace regular employees with individuals with disabilities primarily to obtain tax benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits to businesses employing individuals with developmental disabilities, promoting inclusive hiring and supporting fiscal incentives for social welfare.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill provides tax incentives for businesses to hire individuals with developmental disabilities, expanding employment opportunities and supporting inclusive workforce participation.85% confidence

Sub-Topics Business Taxes Income Tax

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