Budget & Taxes (Tax Incentives)

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

A 3893: Requires certain economic incentive recipients to pay penalty for nonperformance.

This bill requires businesses or individuals receiving New Jersey Economic Development Authority (EDA) incentives - such as grants, tax credits, or loans - to pay a penalty if they fail to meet program requirements. The penalty equals the recipient’s applicable tax rate multiplied by the total value of the incentive received up to that point, paid to the state’s General Fund. The EDA must annually verify compliance with incentive agreements and notify the Division of Taxation about noncompliant recipients. It applies to new incentives awarded after the bill’s effective date, ensuring recipients fulfill obligations tied to economic development programs. The bill does not affect existing contracts or reduce current contractual rights under active incentive agreements.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates penalties for EDA incentive noncompliance, directing funds to General Fund. Strengthens fiscal accountability by closing incentive loophole and increasing state revenue.92% confidence

Sub-Topics State Budget Tax Incentives Tags Economic Development

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in committee · New Jersey · General Assembly Feb 12, 2026

A 4021: Provides CBT and gross income tax credits for certain energy infrastructure upgrades.

This bill provides tax credits to electricity generators (companies operating power plants) who increase their energy output by at least 5% through qualifying infrastructure upgrades. Generators can claim credits covering up to 75% of upgrade costs or $5 million per company, whichever is lower, to offset Corporate Business Tax and gross income tax. To qualify, generators must apply for certification showing the 5% production increase, documenting specific upgrades like efficiency improvements, grid technology, or renewable energy integration. The total credits across all generators are capped at $100 million statewide, and unused credits may be carried forward for up to four tax years. The program requires documentation of actual energy production changes and prohibits double-counting with other tax benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to energy generators, reducing their tax burden and incentivizing infrastructure upgrades - direct tax relief under Budget & Taxes.95% confidence ✓ EnergySupports EnergyBill provides tax credits for infrastructure upgrades increasing energy output (e.g., efficiency improvements), directly promoting energy infrastructure development and efficiency.95% confidence ✓ EnvironmentSupports EnvironmentTax credits for efficiency upgrades in energy infrastructure promote reduced emissions and resource conservation, aligning with environmental protection goals.85% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives Renewable Energy

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

A 3834: Establishes temporary sales tax exemption for small businesses impacted by ongoing public highway projects.

This bill would temporarily exempt small retail businesses in areas affected by highway construction from paying state sales tax during active projects. To qualify, businesses must have 50 or fewer full-time employees, be independently owned, and operate within an "impacted construction zone" where highway work blocks traffic or access. Businesses must apply to the state tax director for approval, which would issue a certificate specifying eligible locations and the exemption period matching the project's duration (from start to completion). The exemption applies only to sales at the business during the construction phase, not to other tax obligations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary sales tax exemption for small businesses, reducing their tax burden during highway construction impacts.92% confidence ✓ TransportationSupports TransportationBill provides tax relief to businesses impacted by highway construction, supporting transportation infrastructure projects by mitigating economic disruption during active highway work.90% confidence

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

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

A 4437: Provides CBT and GIT credits for undertaking of qualified moderate-income housing projects in certain distressed municipalities.

This bill provides tax credits to businesses that build moderate-income housing in specific distressed New Jersey municipalities. The credits cover up to 25% of qualified construction costs, capped at $1 million per project, and are claimed through a state tax application process. If the tax authority doesn’t act within 90 days, applications are automatically approved. Businesses can also sell unused credits to other taxpayers who owe tax, at a minimum of 75% of the credit value.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to businesses building moderate-income housing, reducing tax liability and incentivizing affordable housing development in distressed areas.90% confidence ✓ HousingSupports HousingProvides tax credits for moderate-income housing projects in distressed areas, directly funding affordable housing development through financial incentives.95% confidence

Sub-Topics Tax Incentives Affordable Housing Historic Preservation Housing Finance

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in committee · New Jersey · General Assembly Mar 9, 2026

A 3613: "Saving Our Diners and Preserving Our Past (SODA POP) Act"; provides sales and use tax exemption and corporation business and gross income tax credits for historic diners and historic restaurants included in online registry.*

This bill creates tax incentives for historic diners and restaurants in New Jersey that meet specific criteria. To qualify, establishments must have operated continuously for at least 25 years (including pandemic closures), qualify as small businesses, comply with health/safety rules, and be family-owned. Approved businesses receive a sales tax exemption on prepared food and beverages for on-site consumption and corporation business/gross income tax credits. The program requires annual registration through a state registry established by the Division of Travel and Tourism, with applications reviewed and approved by the Director.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides sales tax exemption and tax credits for qualifying historic diners, reducing their tax burden and supporting small businesses through targeted fiscal incentives.95% confidence

Sub-Topics Income Tax Sales Tax Tax Incentives

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

A 1150: Authorizes proportional property tax exemption for honorably discharged veterans having a service-connected disability and requires State to reimburse municipalities for cost of exemption.

This New Jersey bill (A1150) creates a proportional property tax exemption for veterans with service-connected disabilities. It directly affects honorably discharged veterans whose disabilities (such as paralysis, blindness, or amputations) are certified by the VA as 25% to 100% service-connected. The exemption equals the veteran's disability percentage (e.g., 50% disability = 50% tax exemption) but caps partial exemptions at $15,000. To offset costs for local governments, the state must reimburse municipalities 102% of the tax revenue lost from these exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemption for veterans with disabilities, funded by state reimbursement, aligning with tax relief and fiscal responsibility in budget/tax policy.95% confidence ✓ VeteransSupports VeteransDirectly grants proportional property tax exemption based on service-connected disability percentage for veterans, expanding financial benefits.95% confidence

Sub-Topics Property Tax Revenue Tax Incentives Veteran Education Veteran Healthcare Veteran Housing

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in committee · New Jersey · General Assembly Feb 12, 2026

A 4068: Provides CBT and GIT credits for completion of qualified construction projects at abandoned commercial building sites.

This bill provides New Jersey taxpayers with Corporation Business Tax (CBT) and Gross Income Tax (GIT) credits for completing qualifying construction projects on abandoned commercial buildings. Taxpayers can receive up to 25% of qualified construction costs (capped at $1 million per project) for activities like demolishing abandoned structures, building new commercial spaces, or cleaning up contaminated sites. To qualify, projects must occur on buildings over 100,000 square feet that have been abandoned, and the total credits across all projects cannot exceed $5 million. The credits apply to taxable years beginning after the bill’s effective date, with applications requiring certification from the Division of Taxation.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits (reducing state tax revenue) for qualifying construction projects, directly impacting taxation policy per bill's core mechanism.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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

A 3635: Requires partial State reimbursement to municipalities for cost of disabled veterans' total property tax exemption.

This bill requires New Jersey to reimburse municipalities for a portion of lost property tax revenue caused by exempting permanently disabled veterans' primary homes from property taxes. It directly affects disabled veterans who qualify for the total exemption (e.g., those with paraplegia, blindness, or amputations from service-connected disabilities) and the municipalities that collect property taxes. The state must pay each municipality 10% of the exempted tax amount annually, plus an additional 2% to cover administrative costs. Currently, municipalities bear the full cost of these exemptions without state reimbursement.

Topics ✓ Budget & TaxesSupports Budget & TaxesState reimburses municipalities 10% of lost tax revenue from veteran exemptions, maintaining municipal budgets without defunding local services.92% confidence ✓ VeteransSupports VeteransReimburses municipalities for lost revenue from disabled veterans' property tax exemption, ensuring continued benefit without local fiscal burden.95% confidence

Sub-Topics Property Tax Revenue Tax Incentives

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

A 3540: "Food Desert Elimination Act"; provides incentives to supermarkets and grocery stores that locate in "food deserts."

This bill establishes the "Food Desert Elimination Act" to incentivize supermarkets and grocery stores (18,000+ sq ft) to open in designated "food desert communities" - areas with limited access to fresh food, identified using USDA and CDC data. It provides property tax-based tax credits to businesses that open their *first* supermarket or grocery store in a designated food desert community, covering the full property tax assessed by the municipality for three years after opening. The New Jersey Economic Development Authority will designate up to 75 initial food desert communities, prioritizing areas with high poverty and limited healthy food access. This directly affects low-income residents in these communities by aiming to improve access to nutritious food through new retail options.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax credits to businesses in food deserts, using tax policy to incentivize economic development and address food access issues.95% confidence

Sub-Topics Property Tax Tax Incentives

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

A 1118: Authorizes proportional property tax exemption for honorably discharged veterans having service-connected permanent disability; extends eligibility to veterans suffering from mental illness; establishes eligibility of property owned by disabled veteran with surviving partner for exemption.

This bill expands New Jersey's property tax exemption for veterans with service-connected disabilities. It directly affects honorably discharged veterans who have a permanent service-connected disability, including mental illness (previously excluded), and their surviving partners. The key change adds mental illness as a qualifying condition for a proportional property tax exemption based on the veteran's disability percentage (up to 100%). It also extends eligibility to surviving partners if the veteran developed a service-connected disability after death, allowing them to claim the exemption as if the veteran were still living. The exemption applies to the veteran's or surviving partner's primary residence, in addition to other existing property tax exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax exemption for disabled veterans, reducing their tax burden as fiscal relief for lower-income veterans with service-connected disabilities.95% confidence ✓ HealthcareSupports HealthcareAdds mental illness as qualifying condition for veteran property tax exemption, directly supporting mental health access under healthcare policy by expanding eligibility for service-connected disabilities.85% confidence ✓ HousingSupports HousingBill expands property tax exemption for veterans with disabilities, directly supporting property rights as defined in the housing topic by reducing tax burden on homeowners.90% confidence ✓ VeteransSupports VeteransExpands property tax exemption for veterans by adding mental illness as qualifying condition and extending eligibility to surviving partners, directly advancing benefits.95% confidence

Sub-Topics Property Tax Tax Incentives Mental Health Property Taxes Veteran Benefits Veteran Housing Veteran Mental Health

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