That sounds right. The following are from the Instructions for Form NJ-1040.
Page 7:
"No carryback or carryover of losses is allowed when reporting income on your NJ-1040."
Page 17:
"There is no distinction between active and passive losses for New Jersey purposes. You cannot carry back or carry forward such losses when reporting income on Form NJ-1040. You can deduct federal passive losses in full in the year incurred against any gain within the same category of income."
