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A 3193

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

2026-2027 Regular Session Introduced by Dawn Fantasia and 3 co-sponsors

Eliminates the $375 minimum CBT for New Jersey S corporations with New Jersey gross receipts under $100,000 starting immediately.

Introduced, Referred to Assembly Commerce and Economic Development Committee
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Bill Summary · A 3193

Summary of Bill A 3193 (Session 222) – New Jersey

Purpose and intent

  • The bill eliminates the $375 minimum Corporation Business Tax (CBT) payment for New Jersey S corporations that have New Jersey gross receipts of less than $100,000.
  • Rationale: reduce duplicative or burdensome tax costs on the smallest S corporations to support small-business investment and recovery, while maintaining the overall framework of the CBT for other taxpayers.

Key provisions and changes

  • Amends P.L.1945, c.162 (C.54:10A-5) to adjust the CBT calculation specifically for New Jersey S corporations with minimal statewide gross receipts.
  • Current law (before enactment) requires a $375 minimum CBT payment for many small entities, even if their New Jersey gross receipts are well below $100,000.
  • The bill modifies the minimum tax for New Jersey S corporations as follows:
    • For privilege periods beginning on or after enactment, if a taxpayer is a New Jersey S corporation and has New Jersey gross receipts of less than $100,000, the minimum CBT amount would be reduced to $0.
    • The established minimum tax schedules for other taxpayers (domestic/foreign corporations and non-S corporations) remain intact, including tiered minimums based on New Jersey gross receipts or other criteria.
    • The existing structure for the net income/net worth-based portions of the CBT remains in place for non-S corporations and other entities; the change specifically targets the S corporation minimum threshold.
  • The bill clarifies that the act takes effect immediately and applies to privilege periods beginning on or after the date of enactment.

Who is affected

  • Primary beneficiaries: New Jersey S corporations with New Jersey gross receipts under $100,000.
  • Indirectly affected: other corporate taxpayers (non-S corporations, investment companies, REITs) whose CBT minimums and tax computations are not altered by this bill.
  • Shareholders of S corporations may experience reduced pass-through tax complexity or timing-related tax effects, since the minimum CBT payment is eliminated for the smallest S corps.

Procedural and timeline notes

  • Introduced: January 13, 2026.
  • Committee: Referred to Assembly Commerce and Economic Development Committee.
  • Effective date: Immediate upon enactment; applicable to privilege periods beginning after the date of enactment.

Impact considerations

  • Fiscal impact: The bill reduces CBT minimum collections from the smallest New Jersey S corporations, which could decrease CBT revenue in the near term. The broader CBT framework remains unchanged for other taxpayers.
  • Economic impact: Aimed at reducing fixed tax burdens on very small S corporations to foster reinvestment and growth, potentially aiding small business resilience and job creation.

Note: This summary focuses on the bill’s substantive changes, practical effects, and relevant timelines based on the introduced text.

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

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