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)

Co-Sponsored by:

Assemblymen Miller, Hutchison, Egan, Assemblywoman Park, Assemblyman Atkins, Assemblywoman Drulis, Assemblymen Spearman, Calabrese, Assemblywomen Reynolds-Jackson and Haider

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

     Substitute as adopted by the Assembly Appropriations Committee.

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 income is 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 retroactively to taxable years beginning on or after January 1, 2025.