Are permit fees I paid to upgrade my home, tax deductible for state (NJ) or federal

No they are not. 

NJ doesn't have a personal property tax so NONE of the annual registration fees are deductible. 

As long as the personal property tax is based on the value of the vehicle, then it would be deductible on your return.  

Currently only the following states charge a fee based on the vehicle value:

Alabama

Arizona

Arkansas

California

Colorado

Iowa

Indiana

Kentucky

Louisiana

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

North Carolina 

South Carolina

Washington

Wyoming         

Home improvements are never deductible, instead, they are added to your cost basis—this can be thought of as the amount of money you invested in the home, and will affect your calculation of capital gains when you sell the home.  Your cost basis is the price you original paid, plus the cost of permanent improvements, and minus the value of any depreciation you might have taken as part of a home office or other business deduction.   The cost of obtaining permits can be included as part of the cost of the improvement when determining your cost basis.  See page 8 here. https://www.irs.gov/pub/irs-pdf/p523.pdf