Bill > S4503

This bill proposes an exemption from New Jersey state gross income tax for certain capital gains resulting from the sale or exchange of qualified small business stock. Specifically, the bill would allow taxpayers to exclude from their state taxable income any gains from selling such stock that are already exempt from federal taxation under Section 1202 of the Internal Revenue Code. This means that if an individual sells stock in a qualifying small business and those gains are not taxed at the federal level, they will also not be taxed at the state level in New Jersey. The provisions of this bill would take effect for taxable years beginning on or after January 1 following its enactment, providing a potentially significant tax benefit for investors in small businesses by reducing their overall tax liability. The bill aims to incentivize investment in small businesses by offering tax relief on capital gains from these stock sales.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/S4503