Bill
Bill > A860
NJ A860
NJ A860Temporarily lowers corporation business tax rate for five years and repeals corporation business surtax.
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 temporarily lowers the franchise tax rate imposed on the net income of a corporation that is not an S corporation or a partnership with an entire net income of more than $100,000 for a privilege period from nine percent to seven and a half percent for five corporate tax years and repeals the corporation business surtax. Under current law, certain corporations are subject to a franchise tax rate of nine percent in addition to a two and a half percent surtax on their net income for the corporate tax year. It is the sponsor's hope that by lowering the franchise tax rate and repealing the corporation business surtax ahead of its expiration on December 31, 2023, the State can better promote economic development and job creation by relieving the tax burden on New Jersey businesses.
AI Summary
This bill temporarily lowers the corporation business tax rate for certain businesses in New Jersey for five years, reducing it from nine percent to seven and a half percent on their entire net income, which is the total profit a business earns. This change applies to corporations that are not S corporations (a type of pass-through business where profits and losses are passed through to shareholders) or partnerships with a net income exceeding $100,000. Additionally, the bill repeals the corporation business surtax, which is an extra tax added on top of the regular corporation business tax. The intention behind these changes is to stimulate economic development and job creation by easing the tax burden on New Jersey businesses, especially since the surtax was set to expire at the end of 2023.
Committee Categories
Business and Industry
Sponsors (3)
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/A860 |
| BillText | https://pub.njleg.gov/Bills/2026/A1000/860_I1.HTM |
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