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 reduces the corporation business tax (CBT) tax rate from 9 percent to 2.5 percent of income for privilege periods ending after December 31, 2019, and provides for that tax rate to remain at 2.5 percent in perpetuity. Under the bill, the 2.5 percent rate is to apply to all CBT taxpayers. A "privilege period" is the 12 month accounting period for which tax is due for the privilege of doing business in the State. The sponsor's intent for the bill is to help businesses to withstand revenue losses incurred as a result of the government-enforced closure of businesses due to the COVID-19 pandemic, by allowing those businesses to keep a larger percentage of their earnings. The bill is to take effect immediately upon enactment and apply retroactively to January 1, 2020.
AI Summary
This bill reduces the corporation business tax (CBT) rate from 9 percent to 2.5 percent of income for privilege periods, which are the 12-month accounting periods for which tax is due, ending after December 31, 2019, and this 2.5 percent rate will remain in effect permanently for all CBT taxpayers. The intention behind this change is to help businesses recover from revenue losses caused by government-mandated closures due to the COVID-19 pandemic by allowing them to retain more of their earnings, and this new rate will apply retroactively to January 1, 2020.
Committee Categories
Business and Industry
Sponsors (1)
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/A2660 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2660_I1.HTM |
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