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Bill > S953


NJ S953

NJ S953
Eliminates minimum corporation business tax on New Jersey S corporations.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill eliminates the minimum corporation business tax on New Jersey S corporations. At present, a New Jersey S corporation is subject to the following minimum corporation business tax according to the amount of its New Jersey gross receipts. New Jersey Gross Receipts: Minimum Tax:Less than $100,000 $500$100,000 or more but less than $250,000 $750$250,000 or more but less than $500,000 $1,000$500,000 or more but less than $1,000,000 $1,500$1,000,000 or more $2,000 The purpose of this bill is to lessen the burden of double taxation upon S corporation shareholders. The bill will apply to privilege periods beginning on or after January 1, 2010.

AI Summary

This bill eliminates the minimum corporation business tax for New Jersey S corporations, which are businesses that have elected to be taxed under Subchapter S of the federal Internal Revenue Code, meaning their profits and losses are passed through directly to their shareholders and are not taxed at the corporate level. Previously, these corporations were subject to a tiered minimum tax based on their New Jersey gross receipts, ranging from $500 to $2,000. The purpose of this change, which applies to tax periods starting on or after January 1, 2010, is to reduce the financial burden on S corporation shareholders, thereby lessening the impact of double taxation.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)

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