Bill
Bill > S262
NJ S262
NJ S262Prohibits State administered pension fund investment in corporations shifting ownership or operations outside U.S. for tax purposes.
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 prohibits State administered pension fund investment in corporations shifting ownership or operations outside the U.S. for tax purposes (i.e. corporate inversion tactics). The purpose of this bill is to prevent the State's pension fund investment from supporting the domestic income generation activities of corporations willing to flee the U.S. to avoid tax liability. The bill prohibits the investment of State administered pension funds into a corporation shifting ownership or operations outside the U.S. if that shift lowers the corporation's effective income tax rate by 20% or more within a three-year-period. The bill requires the State to dispose of all investments held in violation of this prohibition within three years of the date of enactment. The bill also includes two reporting requirements: (i) an initial report detailing the current investments in corporations using inversion tactics that is due within 60 days of the date of enactment; and (ii) an annual report detailing the progress made in disposing of investments in corporations using inversion tactics. The annual reporting requirement expires upon the complete disposal of investment in corporations using inversion tactics.
AI Summary
This bill prohibits state-administered pension funds from investing in corporations that shift their ownership or operations outside the United States to reduce their tax burden, a practice often referred to as "corporate inversion." Specifically, the bill prevents investments in companies whose annual worldwide effective income tax rate, calculated as total income tax paid divided by worldwide net income, drops by 20% or more within three years due to such a shift. The State Investment Council and the Director of the Division of Investment are required to sell off any such prohibited investments within three years of the bill becoming law. Furthermore, the bill mandates two reporting requirements: an initial report within 60 days of enactment detailing current problematic investments, and subsequent annual reports on the progress of divesting these holdings, with the annual reporting obligation ending once all such investments are sold.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/13/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S262 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/262_I1.HTM |
Loading...