SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 4503

STATE OF NEW JERSEY

221st LEGISLATURE

ADOPTED JUNE 26, 2025

Sponsored by:

Senator  PAUL A. SARLO

District 36 (Bergen and Passaic)

Senator  RAJ MUKHERJI

District 32 (Hudson)

Co-Sponsored by:

Senator Space

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 Senate Budget and 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 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.