The law change was made to federal tax law - what you are experiencing is a state tax law issue. Its a separate limitation imposed by the State of New Jersey, which is denying you the full deduction.
There is a $10,000 cap on the property tax deduction for NJ - "The property tax deduction reduces your taxable income. The amount of the benefit depends on the amount of your taxable income, the amount of your property taxes or rent, and your filing status. You may be able to deduct up to 100% of your property taxes or $10,000, whichever is less. For tenants, 18% of rent paid during the year is considered property taxes paid."
http://www.state.nj.us/treasury/taxation/njit35.shtml
