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Bill > S872
NJ S872
NJ S872Repeals $100,000 cap on sales and use tax exemption for certain capital improvements made by businesses participating in Urban Enterprise Zone program.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill retroactively repeals the $100,000 cap on the sales tax exemption for retail sales of materials, supplies, and services for the exclusive use of erecting structures or buildings on, or improving, altering or repairing the real property of a qualified business, or a contractor hired by the qualified business to make such improvements, alterations, or repairs. This sales tax exemption is currently available to qualified businesses participating in the State Urban Enterprise Zone program. The sales tax exemption was enacted in August of 2021 with a cap of $100,000, and applies to sales and uses on or after January 1, 2022. This bill keeps the exemption in place but eliminates the cap retroactively to January 1, 2022.
AI Summary
This bill repeals a $100,000 cap on a sales tax exemption for businesses participating in the Urban Enterprise Zone (UEZ) program, meaning that businesses in these zones will no longer have a limit on the amount of sales tax they can be exempted from for materials, supplies, and services used in constructing, improving, altering, or repairing their real property. This exemption, originally enacted in August 2021 and applicable to sales and uses starting January 1, 2022, previously limited the tax relief to the first $100,000 of eligible expenses, but this bill removes that limitation retroactively to the same date. A "qualified business" is defined as a business certified by the authority and operating within an eligible block group, and "substantially improving, altering, or repairing" refers to work that costs at least 50% of the structure's value before the improvements began, with the UEZ Authority having the power to adjust this definition.
Committee Categories
Business and Industry
Sponsors (7)
Vin Gopal (D)*,
Teresa Ruiz (D)*,
Mike Testa (R)*,
Nilsa Cruz-Perez (D),
Paul Sarlo (D),
Bob Singer (R),
Brian Stack (D),
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S872 |
| BillText | https://pub.njleg.gov/Bills/2026/S1000/872_I1.HTM |
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