NJ on Offense, Enacts Law to Fight New York Tax Rule

July 24, 2023 | njspotlightnews.org

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Gov. Phil Murphy on Friday (7/21) signed a law that changes state income-tax policy for individuals and sets up a new tax-credit program for businesses that will be used to entice out-of-state companies to create new locations in New Jersey.

The same law also allows for new tax breaks to be offered to individual taxpayers who mount a successful legal challenge against states like New York that assert they have the right to tax the income of people working from home in another state if the company they work for is based in New York.

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NJ SEED: Unlike the relationship with New York, New Jersey and Pennsylvania have a long-standing reciprocal agreement allowing residents to pay income taxes where they live, regardless of where they work. Setting aside $35 million for tax credits to help attract businesses away from NYC is a good move.