Budget & Taxes (Income Tax)

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

A 1290: Provides gross income tax exclusion for distributions from individual retirement accounts to qualified charitable organizations.

This bill (A-1290) would amend New Jersey's tax code to exclude distributions from individual retirement accounts (IRAs) made to qualified charitable organizations from taxable gross income. It directly affects New Jersey residents who use IRA funds for charitable giving, allowing those distributions to be treated as non-taxable income for state tax purposes. The key mechanism is an amendment to the definition of "gross income" in New Jersey law, specifically adding that such charitable IRA distributions are not included in taxable income. This change aligns New Jersey's treatment of these distributions with federal tax rules for charitable IRA gifts. The bill is currently in committee referral.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes charitable IRA distributions from taxable income, providing tax relief for donors and encouraging charitable giving under NJ tax code.95% confidence

Sub-Topics Income Tax

Track

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 & TaxesSupports Budget & TaxesProvides $2,000 gross income tax deduction for volunteer first responders, reducing taxable income - direct tax relief for lower/middle-income public service workers.95% confidence

Sub-Topics Income Tax Tax Incentives

Track

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

A 134: Provides gross income tax deduction for certain wages of qualified health care professionals employed by health care entities.

This bill provides a 25% gross income tax deduction on hourly wages earned by qualified health care professionals working for eligible New Jersey health care entities. It directly affects licensed nurses, nurse aides, physician assistants, home health aides, and direct support professionals employed by facilities like hospitals, clinics, home care agencies, or psychiatric centers. The deduction applies to wages paid during the taxable year, reducing taxable income for these workers. The law takes effect for tax years starting after its enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% tax deduction for healthcare workers' wages, reducing taxable income. Tax relief for middle-income professionals aligns with supporting fiscal responsibility.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax deduction for healthcare workers' wages, increasing disposable income and directly supporting wage retention for targeted labor force.90% confidence

Sub-Topics Income Tax

Track

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

A 1259: Provides retirement income exclusion under gross income tax for certain persons with income over $3,000 from part-time employment.

This bill (A-1259) modifies New Jersey's retirement income tax exclusion rules to specifically assist older residents with modest part-time earnings. It creates a new provision allowing taxpayers aged 62+ who receive retirement income but also earn over $3,000 from part-time employment (defined as fewer than 30 hours/week) to exclude a portion of their retirement income from taxable gross income. The exclusion amount is calculated by subtracting the $3,000 part-time income threshold and any prior retirement exclusion from the standard exclusion limit. This directly affects retirees aged 62+ with part-time jobs earning $3,001-$150,000 in total income (for 2021+ tax years), reducing their taxable income for those earning between $3,000-$150,000 from part-time work.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exclusion for retirement income of seniors with modest part-time earnings, reducing taxable income and offering relief to lower-income retirees.95% confidence

Sub-Topics Income Tax

Track

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

A 2865: Provides gross income tax deduction for costs of purchasing and installing whole house backup electrical generator for resident taxpayer's principal residence.

This New Jersey bill (A2865) allows resident homeowners to deduct the full cost of purchasing and installing a qualifying whole-house backup generator at their primary residence from their gross income tax. The generator must be permanently connected, run on natural gas or propane, operate only during power outages, and comply with all state and local installation regulations. It directly affects New Jersey homeowners who own a primary residence and install such a generator, providing a tax benefit for these expenses. The deduction applies to the year the generator is purchased and installed, and the bill takes immediate effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for homeowners, reducing taxable income and offering direct tax relief for primary residence generator costs.85% confidence

Sub-Topics Income Tax Procurement

Track

in committee · New Jersey · Senate Feb 24, 2026

S 3688: Allows corporation business tax and gross income tax credits to businesses employing released nonviolent offenders.

This bill provides tax credits to New Jersey businesses that hire released nonviolent offenders. Specifically, businesses can claim a 15% credit (up to $900 per employee) on wages paid to these individuals for both corporation business tax and gross income tax. To qualify, the offender must have committed a nonviolent crime (excluding certain offenses involving force), served time or alternative sentencing, and been released into community supervision. Unused credits can be carried forward for up to seven years, but total credits cannot exceed 50% of a business's tax liability. The bill directly affects employers in New Jersey who hire eligible individuals, aiming to incentivize their reemployment.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credits (15% up to $900/employee) to businesses hiring nonviolent offenders, reducing tax liability and incentivizing employment, aligning with tax relief indicators.90% confidence ✓ Criminal JusticeSupports Criminal JusticeBill incentivizes hiring nonviolent offenders through tax credits, directly supporting reentry programs and reducing recidivism - key criminal justice reform goals.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax incentives (15% credit up to $900/employee) to hire nonviolent offenders, directly expanding employment opportunities for a vulnerable workforce group.85% confidence

Sub-Topics Business Taxes Income Tax Probation & Parole Sentencing Workforce Development

Track

in committee · New Jersey · General Assembly Feb 24, 2026

A 4474: Provides gross income tax credits for portion of homeowners' association payments used in fund infrastructure improvements within common interest communities.

This bill creates a refundable tax credit for New Jersey homeowners in common interest communities (like condominiums or cooperatives) who pay homeowners' association (HOA) fees for infrastructure improvements. The credit equals 18% of the total HOA assessments paid annually for infrastructure projects, as verified by a certification from the HOA. Homeowners must submit this certification when filing their state income tax return to claim the credit, which can reduce their tax bill to zero and refund any remaining amount. The credit applies regardless of whether the home is subject to property taxes or alternative payment agreements.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit (18% of HOA fees for infrastructure) reducing state tax liability for homeowners, directly providing tax relief.95% confidence

Sub-Topics Income Tax Tax Credits

Track

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

A 3151: Excludes overtime pay of certain employees from gross income tax.

This bill exempts overtime pay from New Jersey's gross income tax for specific workers who already earn 150% of their regular wage for hours worked beyond 40 per week. It directly affects most hourly workers covered by New Jersey's overtime law (N.J.S. 34:11-56a4), excluding executives, administrative staff, farm laborers, auto salespeople, hotel employees, limo drivers, and bus carriers. The key mechanism amends tax withholding rules to require employers not to deduct state income tax from this exempt overtime pay. The exemption applies only to overtime legally mandated under state law, not all overtime earnings.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts overtime pay from NJ gross income tax for qualifying hourly workers, providing tax relief to middle/lower income earners covered by overtime law.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts overtime pay from NJ state tax, increasing take-home pay for eligible hourly workers under overtime law, directly advancing wage benefits.95% confidence

Sub-Topics Income Tax Labor Standards

Track

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

A 2993: Allows New Jersey S corporations to elect to transfer corporation business tax credits to shareholders to apply against the shareholders' gross income tax liability.

This bill allows New Jersey S corporations to elect to pass certain business tax credits directly to their shareholders. Instead of using these credits to reduce the corporation's own tax bill, the credits are transferred to shareholders to apply against their personal income tax liabilities. The credits include incentives like research, job creation, and urban development programs. Shareholders can use these transferred credits to lower their individual tax payments, but the amount applied is limited to 50% of their tax liability related to the S corporation's income.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill allows S corporation tax credits to reduce shareholders' personal income tax, providing tax relief tied to business incentives like job creation and urban development.85% confidence

Sub-Topics Business Taxes Income Tax

Track

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

A 2502: Provides $1,000 income tax deduction for certain volunteer firefighters and members of first aid and rescue squads.

This New Jersey bill provides a $1,000 annual deduction from state gross income for eligible volunteer firefighters and first aid/rescue squad members. To qualify, volunteers must serve the entire tax year and meet specific service thresholds: firefighters need 60% attendance at alarms/drills plus Firefighter I certification, while first aid/rescue members need 10% attendance at alarms/drills plus approved training or EMT certification. Fire and rescue departments must submit annual lists of qualifying members to state health and community affairs agencies for verification. The deduction applies to taxable years starting after the bill's enactment date.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides $1,000 income tax deduction for volunteer firefighters, offering tax relief to eligible individuals within the state tax system.95% confidence

Sub-Topics Income Tax

Track