Budget & Taxes (Business Taxes)

signed · New Jersey · General Assembly Jun 30, 2026

A 5322: Imposes temporary $1 million cap on use of net operating loss deductions under corporation business tax for certain privilege periods.

This bill limits the amount of net operating loss deductions that corporations in New Jersey can claim under the corporation business tax to a maximum of $1 million per tax period. It applies to privilege periods ending between July 31, 2026, and July 31, 2030, affecting approximately 600 taxpayers. If a company cannot use its full deduction due to this cap, the unused portion can be carried forward for an additional six tax periods or used to reduce taxable income by up to 75% in later periods ending between 2030 and 2032. The legislation also waives interest and penalties on estimated tax payments made between late 2025 and early 2027 that result from these new limits.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill restricts net operating loss deductions for corporations, limiting tax benefits and reducing fiscal flexibility for businesses.90% confidence

Sub-Topics Business Taxes

in committee · New Jersey · Senate Jun 30, 2026

S 4536: Imposes temporary $1 million cap on use of net operating loss deductions under corporation business tax for certain privilege periods.

This bill imposes a temporary limit of $1 million on the amount of net operating loss deductions that corporations can claim under New Jersey's corporation business tax. It directly affects businesses with privilege periods ending between July 31, 2026, and July 31, 2030, restricting how much they can use past losses to lower their current taxable income. For periods ending between 2030 and 2032, any disallowed deductions may be used to reduce income by no more than 75 percent, and unused amounts can be carried forward for an additional six years. The legislation also waives interest and penalties on estimated tax payments made during a specific window if those underpayments result from the new deduction limits.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill restricts net operating loss deductions, limiting tax relief for corporations and increasing taxable income.95% confidence

Sub-Topics Business Taxes

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in committee · New Jersey · Senate Jun 30, 2026

S 4537: Modifies eligibility for alternative business calculation adjustment allowed under gross income tax.

This bill modifies New Jersey's gross income tax by restricting the alternative business calculation adjustment for taxpayers with higher incomes. It allows business owners to net losses from specific income categories, such as rents or royalties, against gains to determine their taxable business income. Under the new rules, effective for tax years starting in 2026, taxpayers earning $500,000 or less can still deduct 50% of their business profit increase, while those earning between $500,000 and $1 million can only deduct 25%. The bill completely eliminates this tax deduction for individuals with gross income exceeding $1 million.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill restricts tax deductions for higher-income taxpayers, limiting the ability to net losses against gains, which reduces tax relief for those earning over $500,000.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · New Jersey · General Assembly May 11, 2026

A 5039: Requires combined groups to be determined on world-wide basis under corporation business tax.

This bill requires corporations in New Jersey that file combined tax returns to calculate their total income on a worldwide basis rather than limiting calculations to income generated within the state. The law mandates that companies include the full net income of all their foreign branches and subsidiaries, adjusting these figures to align with U.S. accounting standards and converting them into U.S. dollars. It also updates how partnership income is counted within these groups and clarifies rules for foreign corporations with existing tax treaties to ensure consistent reporting across all entities in the group.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill expands corporate tax base to worldwide income, increasing tax liability for businesses and potentially reducing capital available for state budget needs.85% confidence

Sub-Topics Business Taxes

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

A 4775: Excludes passenger and freight rail projects from purposes for which revenue from increase in petroleum products gross receipts tax revenue may be used.

This bill amends New Jersey's existing transportation funding law to prevent money from a proposed increase in the petroleum products gross receipts tax from being used for passenger or freight rail projects. The legislation directly affects the state's transportation budget and the allocation of tax revenue collected from fuel sales. By explicitly excluding rail projects from the list of allowable uses for this specific tax revenue, the bill ensures that funds raised through the petroleum tax increase are directed toward other transportation infrastructure needs rather than rail development. The measure modifies the legal framework governing how the Special Transportation Fund can be utilized, creating a clear restriction on spending priorities for this particular revenue stream.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill restricts use of petroleum tax revenue for rail projects, limiting transportation funding allocation and reducing potential public service investments.85% confidence ✗ TransportationOpposes TransportationBill explicitly excludes rail projects from petroleum tax funding, restricting available transportation infrastructure financing.90% confidence

Sub-Topics Business Taxes Revenue Freight Rail Transportation Funding

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

A 1177: Excludes gains on sales of certain real estate purchases from taxation under corporation business tax and gross income tax.

This bill exempts gains from the sale of certain investment properties from New Jersey's corporation business tax and gross income tax. It applies to real estate purchased during a three-year window starting from enactment (ending three years later), provided the property was held for over two years and was not occupied by the owner (excluding vacant land but including subdivided land actively for sale). Eligible properties must be non-residential investment holdings, not vacant or idle land, and the exclusion requires a minimum two-year holding period. The bill aims to incentivize real estate investment by reducing tax liability on qualifying sales.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts real estate sale gains from NJ taxes for investment properties, creating tax break for investors (aligns with 'oppose' indicator of tax breaks for wealthy).85% confidence

Sub-Topics Business Taxes Income Tax

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

A 2654: Gradually reduces CBT rate.

This bill gradually reduces New Jersey's Corporation Business Tax (CBT) rate for corporations filing tax returns. It lowers the standard tax rate from 7% for tax years ending after December 31, 2020, to 5% in 2021, 3% in 2022, and 2.5% in 2023. Small New Jersey S corporations with net income under $100,000 will see reduced rates (3.5% for 2020-2021, 2.5% for 2021 onward). The changes apply to corporations calculating tax under existing law, modifying the rate schedule in Section 5 of P.L.1945, c.162.

Topics ✗ Budget & TaxesOpposes Budget & TaxesReduces corporate tax rates, creating tax breaks for businesses (wealthy entities), aligning with 'oppose' indicators of tax breaks for wealthy.90% confidence

Sub-Topics Business Taxes

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

A 2703: Eliminates the corporate transit fee.

This bill repeals a 2.5% surtax known as the "Corporate Transit Fee" that applied to corporations with New Jersey taxable income exceeding $10 million during tax periods starting in 2024-2028. It directly affects large corporations paying the Corporate Business Tax (CBT) in New Jersey, eliminating their requirement to pay this additional fee for future tax periods. The fee, which generated revenue for NJ Transit operations and capital projects starting in 2026, is now removed from law. The repeal takes effect immediately upon enactment, applying to all tax periods beginning after the bill’s passage.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill eliminates a corporate tax funding NJ Transit operations, directly defunding public transit programs by removing a dedicated revenue source.95% confidence ✗ TransportationOpposes TransportationRepeals fee funding NJ Transit operations/capital projects, removing dedicated revenue source for transportation infrastructure and services.90% confidence

Sub-Topics Business Taxes

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

A 2644: Repeals surtax imposed on certain businesses.

This bill repeals a surtax on non-public utility businesses with over $1 million in taxable net income. The surtax, which was set at 2.5% for 2018 and 1.5% for 2020-2021, is eliminated for all tax periods beginning January 1, 2019. Affected businesses will no longer owe this additional tax. The repeal takes effect immediately upon enactment.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals surtax on businesses, reducing tax revenue for state budget. Explicit tax cut aligns with weakening tax system.90% confidence

Sub-Topics Business Taxes

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

A 234: Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

This bill creates a 20% tax credit against New Jersey's corporate business tax for investments in qualifying manufacturing equipment and facility improvements (including renovation, modernization, or expansion) at manufacturing facilities located in the state. The credit applies to costs for equipment using advanced technology to produce tangible goods and facilities where over half the property is manufacturing equipment. Unused credits can be carried forward for up to seven years. The bill ensures these investments cannot also claim other existing tax credits like the New Jobs Investment Tax Credit.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates corporate tax credit, aligning with tax breaks for wealthy entities per indicators.90% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Tags Economic Development

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