NJ A1468

Bill

Repeals $100,000 cap on sales and use tax exemption for certain capital improvements made by businesses participating in Urban Enterprise Zone program.

Introduced
01/13/2026

In Committee
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 can now claim an unlimited exemption on sales tax for materials, supplies, and services used for construction or improvements to their property. The Urban Enterprise Zone program is designed to encourage economic development in designated areas, and this exemption, originally enacted in August 2021 with a limit, now applies retroactively to January 1, 2022, removing the previous financial ceiling on the tax relief.

Committee Categories

Business and Industry

Sponsors (4)

Antwan McClellan (R)*, Verlina Reynolds-Jackson (D)*, Erik Simonsen (R)*, Don Guardian (R),

Last Action

Introduced, Referred to Assembly Commerce and Economic Development Committee (on 01/13/2026)

Official Document

https://www.njleg.state.nj.us/bill-search/2026/A1468

(3 Companion Bills)

Version:

Document Type	Source Location
State Bill Page	https://www.njleg.state.nj.us/bill-search/2026/A1468
BillText	https://pub.njleg.gov/Bills/2026/A1500/1468_I1.HTM

Bill	Bill Name	Last Action	Type
A3059	Repeals $100,000 cap on sales and use tax exemption for certain capital improvements made by businesses participating in Urban Enterprise Zone program.	Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee	Carry Over
S1350	Repeals $100,000 cap on sales and use tax exemption for certain capital improvements made by businesses participating in Urban Enterprise Zone program.	Introduced in the Senate, Referred to Senate Economic Growth Committee	Carry Over
S872	Repeals $100,000 cap on sales and use tax exemption for certain capital improvements made by businesses participating in Urban Enterprise Zone program.	Introduced in the Senate, Referred to Senate Economic Growth Committee	Same As

Bill > A1468

summary

Introduced Session

Bill Summary

AI Summary

Committee Categories

Sponsors (4)

Last Action

Official Document

bill text

bill summary

bill summary

bill summary