SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 4503

STATE OF NEW JERSEY

DATED:  JUNE 26, 2025

      The Senate Budget and Appropriations Committee reports favorably a Senate Committee Substitute for Senate Bill No. 4503.

      As reported, this committee substitute would allow an exemption from New Jersey gross income for the capital gains or income derived from the sale or exchange of qualified small business stock (QSBS) to the extent that such gains or income are exempt for the purposes of federal taxation pursuant to section 1202 of the federal Internal Revenue Code of 1986.

      Under federal law, gains derived from the sale or exchange of QSBS that is held for more than five years are exempt from federal income taxation provided that the aggregate amount of such gain from dispositions of stock issued by such corporation which may be taken into account for the taxable year does not exceed the greater of either: (1) $10 million reduced by the aggregate amount of eligible gain taken into account by the taxpayer in prior taxable years; or (2) 10 times the aggregate adjusted basis of QSBS issued by such a corporation and disposed of by the taxpayer during the taxable year.

FISCAL IMPACT:

      Fiscal information for this bill is currently unavailable.