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Bill > A232


NJ A232

NJ A232
Provides research and development tax credit under gross income tax.


summary

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

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill allows taxpayers subject to the New Jersey gross income tax to claim a credit for research and development (R&D) expenses and payments in the same way that taxpayers subject to the corporation business tax may claim the credit. The credit is based on the federal R&D tax credit, and is intended to incentivize R&D spending, which will stimulate technological and economic growth in New Jersey.

AI Summary

This bill allows individuals and businesses subject to New Jersey's gross income tax to claim a credit for qualified research and development (R&D) expenses and payments, mirroring a similar credit available for corporations. The credit is calculated based on federal guidelines, specifically section 41 of the Internal Revenue Code, and is intended to encourage R&D activities within New Jersey to foster technological and economic growth. Importantly, the R&D expenses and payments must be for research conducted within the state to qualify for this credit. The bill also clarifies how this credit interacts with other tax credits, allows for unused credit amounts to be carried forward for up to seven years, and specifies how the credit is allocated to partners and shareholders of partnerships and S corporations, respectively.

Committee Categories

Business and Industry

Sponsors (7)

Last Action

Introduced, Referred to Assembly Science, Innovation and Technology Committee (on 01/13/2026)

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