New Jersey S 1362: Provides for direct property tax relief from Highlands Property Tax Stabilization Fund.

Bill Text

S1362 

SENATE, No. 1362 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JOSEPH A. LAGANA

District 38 (Bergen)

Senator� KRISTIN M. CORRADO

District 40 (Bergen, Essex and Passaic)

SYNOPSIS

���� Provides gross income tax credits to support 
development of New Jersey-based small business start-ups.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act providing gross income tax credits to support the 
development of New Jersey-based small business start-ups, supplementing chapter 
4 of Title 54A of the New Jersey Statutes.� 

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� �1.�� As used in sections 1 
through 5 of 
P.L. , c. (C. ) (pending 
before the Legislature as this bill): 

���� �Employee� means an individual 
who is employed by, or otherwise performs work or renders services for, a 
qualified small business for consideration on a full-time, part-time, seasonal, 
or other basis. �Employee� includes an employee who is obtained by a qualified 
small business from a temporary employee agency, professional employer 
organization, or employee leasing agency, and, if a qualified small business is 
classified as a partnership for federal income tax purposes, each partner of 
the partnership.� 

���� �Qualified small business� 
means a business that:�� 

���� is registered to do business 
in this State, 

���� maintains a business location 
or otherwise derives a majority of its income from business activities or 
operations conducted within this State, 

���� has no more than 50 employees 
in any calendar month during the first taxable year in which the business is 
conducted or operated for a profit by the taxpayer, and 

���� has net income of not more 
than $100,000 from all business activities or operations conducted within and 
without this State during the first taxable year in which the business is 
conducted or operated for a profit by the taxpayer.�� 

���� �2.�� a.� A taxpayer that is a 
qualified small business shall be allowed a credit against the tax imposed 
pursuant to the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., in an 
amount equal to:� 

���� (1)�� 75 percent of the New 
Jersey gross income tax liability that is incurred and required to be paid by 
the taxpayer in connection with the conduct or operation of the qualified small 
business during the first taxable year in which the qualified small business is 
conducted or operated for a profit by the taxpayer, 

���� (2)�� 50 percent of the New 
Jersey gross income tax liability that is incurred and required to be paid by 
the taxpayer in connection with the conduct or operation of the qualified small 
business during the second taxable year in which the qualified small business 
is conducted or operated for a profit by the taxpayer, and 

���� (3)�� 25 percent of the New 
Jersey gross income liability that is incurred and required to be paid by the 
taxpayer in connection with the conduct or operation of the qualified small 
business during the third taxable year in which the qualified small business is 
conducted or operated for a profit by the taxpayer.� 

���� b.��� The amount of credit 
allowed pursuant to paragraph (1), (2), or (3) of subsection a. of this section 
shall be taken by the taxpayer to reduce the tax otherwise due and required to 
be paid for the taxable year to which the credit applies. A credit allowed 
pursuant to paragraph (1) of subsection a. of this section shall only be taken 
by the taxpayer to reduce the tax otherwise due and required to be paid for the 
first taxable year in which the qualified small business is conducted or 
operated for a profit by the taxpayer. A credit allowed pursuant to paragraph 
(2) of subsection a. of this section shall only be taken by the taxpayer to 
reduce the tax otherwise due and required to be paid for the second taxable 
year in which the qualified small business is conducted or operated for a 
profit by the taxpayer. A credit allowed pursuant to paragraph (3) of 
subsection a. of this section shall only be taken by the taxpayer to reduce the 
tax otherwise due and required to be paid for the third taxable year in which 
the qualified small business is conducted or operated for a profit by the 
taxpayer. 

���� c.���� The priority in which a 
credit allowed pursuant to paragraph (1), (2), or (3) of subsection a. of this 
section and any other credits or deductions or adjustments that are allowed by 
law shall be taken shall be prescribed by the director.� 

���� d.��� A qualified small 
business that is classified as a partnership for federal income tax purposes 
shall not be allowed a credit directly, but the amount of credit of a taxpayer 
in respect of a distributive share of partnership income shall be determined by 
allocating to the taxpayer that proportion of the credit acquired by the 
partnersh