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Bill

A 2666

Eliminates $375 minimum Corporation Business Tax on New Jersey S corporations with New Jersey gross receipts of less than $100,000.

2024-2025 Regular Session Introduced by Dawn Fantasia and 2 co-sponsors

New Jersey bill eliminates $375 minimum business tax for S corporations with under $100,000 in state gross receipts, reducing compliance burden for small businesses.

Introduced in the Assembly, Referred to Assembly Commerce, Economic Development and Agriculture Committee
#bustaxes #corporations
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Bill Summary · A 2666

Legislative bill overview

Bill A 2666 removes the $375 annual minimum Corporation Business Tax requirement for New Jersey S corporations that generate less than $100,000 in New Jersey gross receipts. This targets small S corporations that currently must pay this minimum tax regardless of profitability or income level.

Why is this important

Small S corporations, particularly those in early stages or with minimal in-state revenue, currently face a fixed $375 tax obligation that can represent a significant burden relative to their income. Eliminating this minimum could reduce compliance costs and tax liability for approximately 10,000-15,000 small businesses, though the actual tax revenue impact would be modest (estimated $3.75-5.6 million annually if fully applied).

Potential points of contention

  • Revenue loss: The state would forgo tax revenue from small businesses, though the fiscal impact is relatively limited compared to total corporate tax collections
  • Fairness concerns: Questions about whether eliminating taxes for sub-$100K revenue businesses while maintaining minimums for others creates inequitable treatment
  • Definition disputes: The $100,000 threshold and "gross receipts" calculation methodology could create administrative complexity and disputes about eligibility
  • Precedent risk: May encourage similar minimum tax elimination requests from other business entity types (LLCs, partnerships, C corporations)

Compiled from official sources — confirm details with the bill’s official record.

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