In an effort to stimulate economic growth and aid in the recovery from the effects of the COVID-19 pandemic, New Jersey lawmakers have announced new tax breaks for small businesses in the state. The tax breaks come as part of a larger package of measures aimed at supporting businesses and individuals who have been hardest hit by the ongoing crisis.As of February 21, 2026, small businesses in New Jersey will be eligible for a variety of tax breaks, including a reduction in the state's corporate income tax rate from 9% to 6% for businesses with annual revenues of under $1 million. Additionally, businesses that have been forced to close or reduce capacity due to government-mandated restrictions will be able to claim a tax credit to help offset their losses.Governor Phil Murphy, who has been a vocal supporter of small businesses throughout the pandemic, touted the new tax breaks as a crucial step in the state's economic recovery. "Small businesses are the backbone of our economy, and we must do everything we can to support them during this challenging time," he said in a statement. "These tax breaks will provide much-needed relief to struggling businesses and help pave the way for a stronger, more resilient economy in the future."The tax breaks are part of a larger economic relief package that also includes funding for small business grants, loans, and workforce training programs. Lawmakers hope that these measures will help jumpstart business activity and create new job opportunities for New Jersey residents.While the tax breaks have been met with widespread support from business owners and industry groups, some critics have raised concerns about the potential impact on the state's budget. However, proponents argue that the long-term benefits of supporting small businesses far outweigh any short-term budgetary concerns.Overall, the introduction of tax breaks for small businesses in New Jersey marks a significant step towards economic recovery and growth in the state. With the support of these measures, lawmakers are hopeful that businesses will be able to weather the remaining challenges of the pandemic and emerge stronger on the other side.