Bill
Bill > A820
NJ A820
NJ A820Requires Director of Division of Taxation to conduct study on impact of State business income taxation on business out-migration, formation, and employment for previous and upcoming tax years.
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 requires the Director of the Division of Taxation to engage in a study of the impact of New Jersey business income taxes on business out-migration, business formation, and employment within the State. In conducting the study, the director would examine data available from corporation, partnership, and other New Jersey income tax returns from the period beginning on January 1 of the eighth calendar year immediately preceding the effective date of the bill and ending on December 31 of the eighth calendar year immediately following the effective date of the bill. Based on data available from the period beginning on January 1 of the eighth calendar year immediately preceding the effective date of the bill and ending on December 31 of the calendar year immediately preceding the effective date of the bill, the director would be required to submit a Retrospective Tax Policy Impact Report consisting of the study's findings and recommendations, including whether any State or local tax laws or policies may be modified to improve the State's business climate and decrease the financial impact of taxes on businesses residing in the State. The director would be required to submit the report on or before January 15 of the second calendar year immediately following the effective date of the bill to the Governor and the Legislature. For the first full calendar year beginning after the effective date of the bill and for each of the seven calendar years thereafter, the director would be required to annually submit to the Governor and the Legislature, a Tax Policy Impact Report consisting of the study's findings and recommendations from the data available for that year, by January 15 of the calendar year immediately following the calendar year for which each report is prepared.
AI Summary
This bill mandates that the Director of the Division of Taxation conduct a comprehensive study to assess how New Jersey's business income taxes affect businesses leaving the state (out-migration), the creation of new businesses (formation), and overall employment. The study will analyze data from various New Jersey income tax returns, including those from corporations and partnerships, covering a significant period both before and after the bill's effective date. Initially, the Director must produce a "Retrospective Tax Policy Impact Report" detailing findings and suggesting changes to state or local tax laws to improve the business environment and reduce tax burdens on businesses, to be submitted by January 15 of the second year after the bill becomes law. Subsequently, for seven years following the bill's effective date, the Director will annually submit a "Tax Policy Impact Report" with updated findings and recommendations based on the preceding year's data, also by January 15. The bill takes effect on January 1 of the first full calendar year after its enactment and will conclude after the final annual report is issued.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Commerce and Economic Development 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/A820 |
| BillText | https://pub.njleg.gov/Bills/2026/A1000/820_I1.HTM |
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