Jersey Pride Tax Credit Act of 2026
- Bill Number
- H.R. 8655
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-04: Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-05-13T15:57:02Z
AI-Generated Summary
H.R. 8655: Jersey Pride Tax Credit Act of 2026
Purpose
To encourage the sale of products that promote the State of New Jersey by providing a federal tax credit to sellers and requiring port authorities (organizations that manage ports, harbors, and related facilities) to prioritize such businesses when renting commercial retail spaces.
Key Provisions
- Tax Credit Creation: Adds a new section (45BB) to the Internal Revenue Code (the main U.S. tax law):
- Provides a "Jersey Pride Tax Credit" equal to 25% of the total sales value of "eligible products" sold to unrelated parties during the tax year.
- Eligible product: Any product that promotes New Jersey (e.g., merchandise featuring New Jersey themes, symbols, or branding).
- Integrates the credit into the existing general business credit system (under section 38), allowing businesses to claim it against their tax liability.
- Effective Date: Applies to products sold after December 31, 2025.
- Port Authority Preference: Port authorities, as defined in federal regulations (46 CFR § 340.2), must give preference to businesses selling eligible products when renting commercial spaces (e.g., shops in airports or terminals).
Significant Changes to Existing Law
- New Tax Incentive: Introduces a novel business tax credit specifically tied to promoting a single state (New Jersey), which does not previously exist in the Internal Revenue Code.
- Mandate on Port Authorities: Imposes a federal requirement on port authorities to favor certain businesses in leasing decisions, altering their standard commercial rental practices.
Potential Impacts
- Businesses and Citizens: Sellers of New Jersey-themed products (e.g., retailers, manufacturers) gain a financial incentive, potentially boosting local economies, tourism, and sales in New Jersey; other businesses may face competitive disadvantages.
- Government Agencies: IRS must administer the new credit, increasing administrative workload; port authorities (e.g., Port Authority of New York and New Jersey) must adjust rental processes, possibly affecting revenue or operations.
- No Direct International Relations Impact: Primarily domestic, focused on U.S. interstate commerce and taxation.
Main Stakeholders Affected
- Businesses: Retailers and sellers of New Jersey-promoting products (primary beneficiaries).
- Port Authorities: Entities managing facilities with retail spaces (must comply with preferences).
- U.S. Treasury/IRS: Handles tax credit claims and payments.
- New Jersey Residents/Economy: Indirect boost through increased promotion and sales.
- Competing Businesses: Sellers of non-eligible products may lose retail opportunities at ports.
Notable Legal, Constitutional, or Political Implications
- Potential Equal Protection or Commerce Clause Issues: Favoring products tied to one state could raise questions under the U.S. Constitution about discriminating against interstate commerce or treating states unequally (though not yet challenged, as this is an introduced bill).
- Federalism Concerns: Directs state-linked entities (like port authorities) via federal law, potentially blurring lines between federal tax policy and local operations.
- Political Context: Bipartisan sponsorship (Democrats Gottheimer and Pou); promotes state pride but may be seen as narrow or symbolic "pork-barrel" legislation favoring New Jersey. Referred to House Committees on Ways and Means (tax) and Transportation and Infrastructure (ports).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Gottheimer, Josh [D-NJ-5]
Cosponsors (1)
Recent Actions
- 2026-05-04: Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-04: Referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-04: Introduced in House
- 2026-05-04: Introduced in House
Bill Versions
- Jersey Pride Tax Credit Act of 2026 — issued 2026-05-04 — PDF (3 pages)