Budget & Taxes (Tax Incentives) in New Jersey

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

A 2813: Allows certain volunteer firefighters, rescue and first aid squad members to claim $2,000 gross income tax exemption.

This bill provides a $2,000 deduction from New Jersey gross income tax for eligible volunteer firefighters, first aid squad members, and rescue squad volunteers. To qualify, individuals must serve the entire tax year, meet specific duty requirements (60% fire service attendance or 400 duty hours for fire volunteers; 10% rescue service attendance or 400 duty hours for first aid/rescue volunteers), and hold required certifications (Firefighter I for fire volunteers or approved EMS training for rescue volunteers). Fire departments and first aid/rescue squads must submit annual lists of qualifying members to state agencies by March 31st. The deduction applies to taxable years beginning after the bill's enactment date.

Topics ✓ Budget & Taxes

Sub-Topics Income Tax Tax Incentives

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

ACR 122: Proposes constitutional amendment to authorize temporary property tax exemption for value of certain homestead improvements.

This bill proposes a constitutional amendment to allow New Jersey homeowners to temporarily exclude the value of certain home improvements from property taxes. It would require the state legislature to create a law granting a tax exemption covering up to $100,000 in assessed value for improvements made to a homeowner's principal residence, applicable for no more than three consecutive tax years. Homeowners would still pay taxes on the property's value before improvements and on any improvements exceeding $100,000. The exemption would apply only to the increase in value from the improvements, not the entire property. This proposal must first be approved by voters before the legislature can enact the implementing law.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

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

A 555: "Senior Citizens Property Tax Deferral Act"; allows certain seniors to defer property tax payments.

This bill, the "Senior Citizens Property Tax Deferral Act," allows eligible seniors aged 65+ to delay paying property taxes until they sell their home, move out, or pass away. To qualify, seniors must have a home valued under $500,000, no reverse mortgage, and an annual household income under $50,000. The deferral covers up to 110% of current property taxes (adjusted for existing rebates), but cannot exceed 75% of the home’s equity after liens. Applications must be submitted annually by April 1st to the local tax collector. The bill aims to prevent tax sales and foreclosure for low-income seniors facing financial hardship.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives Tags Seniors

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

A 1575: Changes State assistance to urban enterprise zones over seven years by increasing reduced sales tax in enterprise zones and dedicating increase to zone municipalities.

This bill (A 1575) modifies New Jersey's urban enterprise zone program by increasing the reduced sales tax rate applied within designated enterprise zones. The additional tax revenue generated from this increase would be dedicated directly to the municipalities where these zones are located. It affects qualifying municipalities that have enterprise zones meeting specific unemployment criteria, as defined in the law. The change aims to provide ongoing funding for municipal services and zone development projects through this dedicated tax revenue stream, rather than through other state funds. The bill amends the existing enterprise zone assistance fund provisions to implement this tax-based revenue source.

Topics ✓ Budget & Taxes

Sub-Topics Revenue Sales Tax Tax Incentives

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

ACR 86: Proposes constitutional amendment to provide property tax exemption for primary residence owned and occupied by surviving spouse of first responder who dies in line of duty.

ACR 86 proposes a constitutional amendment to exempt the primary residence of a surviving spouse from property taxes if their spouse - a law enforcement officer, firefighter (paid or volunteer), or emergency medical responder (ambulance/rescue squad member) - died while on duty. The exemption applies as long as the surviving spouse continues to live in the home as their primary residence and does not remarry. The state would reimburse local taxing districts annually for the lost property tax revenue from these exempt properties. This change would directly affect surviving spouses of qualifying first responders in New Jersey who own their home.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Revenue Tax Incentives

in committee · New Jersey · Senate Feb 5, 2026

SCR 84: Proposes constitutional amendment to require State reimbursement to municipalities for total property tax exemption provided to veterans having permanent and total service-connected disabilities.

SCR 84 proposes a constitutional amendment requiring New Jersey to reimburse municipalities for property taxes lost when granting total property tax exemptions to veterans with permanent and total service-connected disabilities. Currently, municipalities absorb these costs, but the amendment would shift the financial burden to the state. Under the proposal, the state would pay municipalities the full amount of property taxes that would have been collected on exempted properties, and municipalities would then reimburse counties, school districts, and other local entities for their share of lost revenue. This change directly affects qualifying veterans, municipalities, and local taxing bodies that currently bear the cost of these exemptions.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Property Tax Tax Incentives Veteran Healthcare

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

A 4425: Provides 50 percent sales and use tax exemption for certain businesses in impacted municipalities during ongoing public highway project.

This bill provides a 50% sales tax exemption for small retail businesses operating in municipalities affected by ongoing public highway projects. It applies to businesses with a fixed location offering goods or services (like retail stores or charter boat services) during the "relief period" - the time between when a highway project starts and ends. Businesses must apply to the Tax Division Director for approval, verifying their location within an impacted area. The exemption automatically ends 30 days after the Transportation Commissioner notifies the Tax Division that the highway project is complete.

Topics ✓ Budget & Taxes ✓ Transportation

Sub-Topics Business Taxes Sales Tax Tax Incentives Roads & Highways

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

A 1262: Requires State reimbursement to local government units for first-year uncollected property tax revenue attributable to veterans' property tax exemption.

This bill (A 1262) requires the State of New Jersey to reimburse local governments (municipalities, counties, school districts, and fire districts) for property taxes they cannot collect during the **first year** a veteran qualifies for a 100% service-connected disability property tax exemption. It directly affects veterans who meet specific disability criteria (like paraplegia, blindness, or amputation) and the local governments that lose tax revenue when these exemptions take effect. The key mechanism mandates that tax collectors submit documentation to the State Treasurer within 10 days of exemption approval, and the State must reimburse local entities within 10 days of each quarterly tax bill due date. This policy change ensures local governments are financially compensated for the initial tax loss, not subsequent years.

Topics ✓ Budget & Taxes ✓ Veterans

Sub-Topics Property Tax Revenue Tax Incentives Veteran Healthcare

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

ACR 57: Proposes constitutional amendment to provide property tax exemption for primary residence owned and occupied by surviving spouse of first responder who dies while performing regular or assigned duties.

ACR 57 proposes a constitutional amendment to exempt the primary residence of a surviving spouse from property taxes if the spouse's partner was a first responder (law enforcement officer, firefighter, or emergency medical personnel) who died while performing duties. The exemption applies only if the property was the first responder's primary residence at the time of death, the surviving spouse cohabited under conditions that wouldn't have led to divorce, and the death wasn't due to the first responder's willful negligence. The exemption lasts as long as the surviving spouse owns and occupies the home as their primary residence and remains unmarried. It does not cover cases where the spouse remarries or if the first responder's death resulted from their own negligence.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax Tax Incentives

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

A 3233: Indexes amount of veterans' income tax exemption for inflation.

This bill (A-3233) adjusts the New Jersey veterans' income tax exemption amount annually for inflation. It directly affects veterans honorably discharged from the U.S. Armed Forces, National Guard, or New Jersey Reserve. The exemption amount, currently $6,000, will be updated each year based on the Chained Consumer Price Index (C-CPI-U) for the 12-month period ending August 31 of the prior year. If inflation is zero, the exemption amount remains unchanged. The 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

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