NJ S3214

Excludes from New Jersey gross income tax any capital gains from selling employer securities of a qualified non-publicly traded business with fewer than 500 employees to an employee stock ownership plan (ESOP), S corporation owned by an ESOP, or worker-owned cooperative

Requires the ESOP or cooperative to own at least 30% of all outstanding employer securities after the transaction for the tax exclusion to apply

Qualified businesses must have their headquarters or base of operations in New Jersey and can include corporations, LLCs, partnerships, and sole proprietorships

Takes effect immediately and applies to taxable years beginning on or after January 1 following enactment

Aims to incentivize small business owners to sell their companies to employees rather than out-of-state buyers, helping preserve local businesses and communities