A5323

Modifies eligibility for alternative business calculation adjustment under New Jersey gross income tax.

This bill modifies the eligibility for the alternative business calculation adjustment under the New Jersey gross income tax. It phases out the adjustment for taxpayers with gross incomes over $500,000. For taxable years beginning in 2026 and thereafter, taxpayers with gross income of no more than $500,000 can subtract 50 percent of their business increment from taxable income. Those with gross income over $500,000 but no more than $1,000,000 can subtract 25 percent, while those with gross income over $1,000,000 cannot subtract any percentage.