All Roll Calls
Yes: 72 • No: 37
New JerseyA5322221st Legislature (2026-2027)HouseWALLET
Imposes temporary $1 million cap on use of net operating loss deductions under corporation business tax for certain privilege periods.
Sponsored By: Katie Brennan (Democratic), Nicholas P. Scutari (Democratic), Anthony S. Verrelli (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
New Jersey businesses get deferred loss relief
Businesses can use losses blocked by the $1 million cap for tax periods ending July 31, 2030, through July 30, 2032. This restored deduction is available up to 75% of their allocated entire net income for the period. Loss deductions left unused because of either limit get six extra tax periods, immediately after their original expiration period. Businesses also avoid interest and penalties on estimated corporation tax underpayments caused by these loss deduction limits. This protection covers installments due after December 31, 2025, and before January 1, 2027.
New Jersey businesses face loss deduction cap
The law takes effect immediately and applies to New Jersey corporation business tax periods ending July 31, 2026, or later. For periods ending July 31, 2026, through July 30, 2030, total net operating loss deductions are capped at $1 million. Public utilities are excluded, and the cap is prorated by months for periods shorter than 12 months. The cap covers carried-over losses, converted prior losses, post-allocation losses, and losses carried over within combined groups, including any combination. It does not restrict businesses from surrendering, acquiring, or applying corporation business tax benefit certificates.
Sponsors & Cosponsors
Sponsors
Katie Brennan
Democratic • House
Nicholas P. Scutari
Democratic • Senate
Anthony S. Verrelli
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 6/30/2026
3RDG FINAL PASSAGE
Yes: 25 • No: 15
House vote • 6/30/2026
3RDG FINAL PASSAGE
Yes: 47 • No: 22
Actions Timeline
Governor: APP
6/30/2026GovernorApproved by Governor — P.L.2026, c.21.
6/30/2026GovernorPassed Senate, PBH — (25-15)
6/30/2026SenateSubstituted for S4536 (1R)
6/30/2026SenateReceived in Senate, SWR, 2nd Reading in Senate
6/30/2026SenatePassed Assembly — (47-22-0)
6/30/2026HouseREP/ACA, 2nd Reading in Assembly
6/28/2026HouseIntroduced, 1st Reading in Assembly, Referred to Assembly Budget Committee
6/23/2026House
Bill Text
Version PL2026
9/17/2026
Version AL2026
8/13/2026
7/6/26; 1R
7/6/2026
Assembly Budget (6/28/26 1R)
6/30/2026
Assembly Budget Substitute (6/28/26)
6/29/2026
As Introduced
6/27/2026
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