Three significant bills supported by the New Jersey Business & Industry Association (NJBIA) have advanced in the Assembly Appropriations Committee, aligning with Governor Phil Murphy's proposed fiscal year 2026 budget. With just ten days left to finalize the state's spending plan, these bills aim to promote innovation and manufacturing within New Jersey.
Christopher Emigholz, NJBIA Chief Government Affairs Officer, expressed optimism about the progress of these initiatives. "This is a great sign," he stated, acknowledging criticism of certain tax increases and funding reductions in the initial budget proposals. However, he emphasized the positive aspects of the governor's plan. "We were happy to testify in support of these bills this week and to see such overwhelming support for them from our lawmakers. We will continue to urge their passage to the governor’s desk."
The three advancing bills are:
- A-2365: Sponsored by Tully (D-38), Murphy (D-7), and DePhillips (R-40), this bill seeks to increase tax credits for investments in technology business ventures under the New Jersey Angel Investor Tax Credit Act.
- A-4455: Proposed by Freiman (D-16), Schaer (D-36), and Karabinchak (D-18), it allows deductions from New Jersey gross income for certain capital gains from sales or exchanges of qualified small business stock held for over five years.
- A-5687: Introduced by Greenwald (D-6), McClellan (R-1), and Reynolds-Jackson (D-15), this legislation establishes the “Next New Jersey Manufacturing Program” aimed at incentivizing manufacturing investments and job creation within the state.
The last bill stands out as it reallocates $500 million from existing tax credit programs without requiring additional funding. It has bipartisan support and comes at a time when previous manufacturing incentives have been removed from the FY26 budget.
Emigholz highlighted the importance of revitalizing manufacturing in New Jersey amid federal uncertainties affecting manufacturers nationwide. He described these challenges as including tariff issues and supply chain disruptions. "Manufacturing is important, and we need to get back to making more things in New Jersey," he remarked.
A particular provision in A-5687 mandates that $100 million be dedicated to clean energy projects—a point criticized by some legislators but defended by Emigholz as beneficial due to its broad definition encompassing nuclear energy.
Regarding A-2365, Emigholz praised its potential impact on emerging technology businesses through increased tax credits. The bill proposes raising credits from 20% to 35%, with further bonuses available for qualifying investments in low-income communities or minority/women-owned enterprises.
For A-4455, Emigholz noted that changing current state policies could attract more investment into innovative startups by aligning with federal QSBS standards that offer partial exclusions on capital gains taxes.
Concluding his remarks on these legislative efforts, Emigholz expressed hope for their success: “Ending our uncompetitive and outlier tax treatment of investments in innovative start-ups is one of the best ways to attract capital... It’s a big win if we can get this done.”
