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:
C.54A:6-34 Gross income, certain exemptions, small business stock.
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 gains or income are 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 to taxable years beginning on or after the January 1 next following the date of enactment.
Approved June 30, 2025.