NJ S2550

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

Requires the ESOP or cooperative to own at least 30 percent of all outstanding employer securities after the transaction to qualify for the exclusion

Applies only to qualified businesses with headquarters or base of operations in New Jersey, including corporations, LLCs, partnerships, and sole proprietorships

Defines key terms using federal Internal Revenue Code definitions for employee stock ownership plans, employer securities, and eligible worker-owned cooperatives

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