It is from a corporate bond and should be taxable to NJ.
When I bought it, I paid accrued interest, so that's why I adjust the taxable amount. So if my 1099-INT box 1 were $100, but I paid $40 accrued interest, then the taxable amount should be $60. The federal 1040 line 2b shows it as $60, but the NJ-1040 does not seem to adjust it from the accrued amount paid.
