New Jersey Proposes Rules for 2023 Major Corporate Tax Changes

The New Jersey Treasury Department is asking for comments by April 19 on draft regulations to implement corporate business tax reforms the state enacted in a 2023 law.

The 35-page document comes a year and a half after Gov. Phil Murphy (D) approved the 2023 tax overhaul slashing the state’s authority to tax the earnings of foreign subsidiaries of global corporations but at the same time expanding its ability to tax out-of-state businesses.

The proposal incorporates parts of the Multistate Tax Commission’s updated interpretation of Public Law 86-272. The federal law generally exempts remote businesses from state income tax if ...