ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 4455
STATE OF NEW JERSEY
221st LEGISLATURE
ADOPTED JUNE 19, 2025
Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
Senator RAJ MUKHERJI
District 32 (Hudson)
Co-Sponsored by:
Senator Space, Assemblymen Miller, Hutchison, Egan, Assemblywoman Park, Assemblyman Atkins, Assemblywoman Drulis, Assemblymen Spearman, Calabrese, Assemblywomen Reynolds-Jackson, Haider, Swain and Assemblyman Tully
SYNOPSIS
Allows exemption from New Jersey gross income of certain capital gains from sale or exchange of qualified small business stock.
CURRENT VERSION OF TEXT
As reported by the Assembly Budget Committee on June 26, 2025, with amendments.
An Act allowing an exemption from New Jersey gross income of certain capital gains from the sale or exchange of qualified small business stock and supplementing Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any law or regulation to the contrary, gross income shall not include net gains or income derived from the sale, exchange, or other disposition of qualified small business stock to the extent such 1gains or1 income 1[is] are1 exempt from federal taxation pursuant to section 1202 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.1202).
2. This act shall take effect immediately and shall apply 1[retroactively]1 to taxable years beginning on or after 1the1 January 1 1[, 2025] next following the date of enactment1.