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Division of Taxation

2021 Tax Law Summaries

The Garden State Film and Digital Media Jobs Act has been expanded to allow an increase to the digital media content production tax credit. The law also increases and extends the diversity plan credit to July 1, 2034.

  • Citation: P.L. 2021, c.367
  • Signed into law: Jan 10, 2022
  • Effective: Jan 10, 2022

The Pass-Through Business Alternative Income Tax (PTE-BAIT) law is amended. The law amends the definitions of "direct share of the tax paid" and "distributive proceeds" for New Jersey resident members and specifies which taxes or fees the PTE-BAIT credit may be used against. In addition, a partnership is no longer required to make a payment of tax on behalf of a non-resident partner if the partner reasonably expects a refund due to the PTE-BAIT credit.

  • Citation: P.L. 2021, c.419
  • Signed into law: Jan 10, 2022
  • Effective: January 1, 2022

The Casino Hotel Room Occupancy Surcharge Act imposes a surcharge at the rate of $2 per day for each occupied room. Rooms used as a place of assembly, in a casino hotel, are exempt.

  • Citation: P.L. 2021, c.497
  • Signed into law: Jan 18, 2022
  • Effective: March 1, 2022

The Income Tax Child and Dependent Care Credit expands to include resident taxpayers with New Jersey taxable income of $150,000 or less, increases the percentage allowed, eliminates the previous maximum credit amounts, and makes the credit refundable.

  • Citation: P.L. 2021, c.308
  • Signed into law: December 3, 2021
  • Effective: immediately and applies retroactively to tax years beginning on or after January 1, 2021

The purchase and use of unit concrete products that utilize carbon footprint-reducing technology is exempt from New Jersey Sales and Use Tax and may provide a Corporation or Gross Income Tax Credit.

  • Citation: P.L. 2021, c.278
  • Signed into law: November 8, 2021
  • Effective: November 8, 2021, with the tax credits applying to purchases made on or after January 1, 2022

Taxpayers can now make contributions to the Special Olympics New Jersey Fund on New Jersey resident and nonresident Income Tax returns.

  • Citation: P.L. 2021, c.280
  • Signed in law: November 8, 2021
  • Effective: Tax years beginning on or after January 1, 2021

The Garden State Growth Zone property tax exemption program now allows additional municipalities to opt-in to the program if they meet the new State requirements.

  • Citation: P.L. 2021, c.232
  • Signed into law: September 24, 2021
  • Effective: September 24, 2021

The law extends the sale and use tax exemption on energy to certain recycled materials manufacturing facilities.

  • Citation: P.L. 2021, c.213
  • Signed into law: September 16, 2021
  • Effective: September 16, 2021

A law extending the Urban Enterprise Zone (UEZ) program for 10 years, prohibiting the creation of new zones, limiting sales tax exempt purchases made by UEZ businesses, and eliminating employee tax credits for new applicants.

  • Citation: P.L. 2021, c.197
  • Signed into law: August 16, 2021
  • Effective: August 16, 2021, with some provisions taking effect January 1, 2022.

The Dual-Use Solar Energy Program creates a pilot program for the placement of solar generation on unpreserved farmland and authorizes continued assessment of that farmland at agricultural values for property tax purposes. The Board of Public Utilities will establish rules and regulations for a permanent program.

  • Citation: P.L. 2021, c.170
  • Signed into law: July 9, 2021
  • Effective: July 9, 2021

A law modifying Property Tax assessments provides several amendments to the inspections for reassessment and appeals procedures for counties operating under the alternate assessment calendar.

  • Citation: P.L. 2021, c.136
  • Signed into law: June 30, 2021
  • Effective: June 30, 2021

New Jersey EITC expansion law allows taxpayers who are at least 18 years of age or older without a qualifying child to qualify for modified benefit. The law also removes the maximum age requirement allowing residents who are 65 or older without a qualifying child to be eligible.

  • Citation: P.L. 2021, c.130
  • Signed into law: June 29, 2021
  • Effective: Tax years beginning on or after January 1, 2021.

Legislation authorizing new income limits for the pension and other retirement income exclusion provides a partial pension and other retirement income exclusion for taxpayers with incomes between $100,000 and $150,000 who were previously ineligible for these exclusions.

  • Citation: P.L. 2021, c.129
  • Signed into law: June 29, 2021
  • Effective: Tax years beginning on or after January 1, 2021.

The New Jersey College Affordability Act creates three new income tax deductions for taxpayers with gross income of $200,000 or less. Taxpayers can deduct $10,000 of contributions made into the New Jersey Better Educational Savings Trust (NJBEST), up to $2,500 of principal and interest paid on student loans under the New Jersey College Loans to Assist State Students (NJCLASS), and up to $10,000 of tuition paid to an in-state higher learning institution for enrollment or attendance.

  • Citation: P.L. 2021, c.128
  • Signed into law: June 29, 2021
  • Effective: Tax years beginning on or after January 1, 2022.

Loans that are forgiven under the rules governing the federal Paycheck Protection Program are excluded from gross income under the New Jersey Gross Income Tax Act. The law also allows a deduction for gross income tax and corporation business tax filers for ordinary and necessary business expenses that were paid for with the proceeds of a Paycheck Protection Program loan. The deduction is available even if the loan was forgiven or not included in income.

  • Citation: P.L. 2021, c.90
  • Signed into law: May 11, 2021
  • Effective: retroactively to tax years beginning on or after January 1, 2020.

The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act legalizes and taxes the sale of recreational cannabis, and decriminalizes the possession of small amounts of marijuana and hashish possession; removes marijuana as a Schedule I drug.

  • Citation: P.L. 2021, c.16
  • Signed into law: February 22, 2021
  • Effective: February 22, 2021

The New Jersey Economic Recovery Act of 2020 creates or amends a variety of tax credits and authorizes how credits are transferred or sold.

  • Citation: P.L. 2020, c.156
  • Signed into law: January 7, 2021
  • Effective: January 7, 2021

Last Updated: Wednesday, 07/13/22