A5323

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

The bill modifies eligibility for the alternative business calculation adjustment under the New Jersey gross income tax. Beginning with taxable year 2026, it phases out the adjustment for taxpayers with gross incomes over $500,000. Taxpayers with gross incomes over $500,000 but no more than $1 million can deduct 25 percent of their business increment from taxable income, while those with incomes over $1 million are ineligible for the deduction. Certain taxpayers with incomes of $500,000 or under can continue to deduct 50 percent of their business income or loss.