Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
Senator MICHAEL L. TESTA, JR.
District 1 (Atlantic, Cape May and Cumberland)
Co-Sponsored by:
Senator Corrado
SYNOPSIS
“New Jersey Makes, the World Takes Act”; allows corporation business tax credit for selling New Jersey made products.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a corporation business tax credit for selling New Jersey made products, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. This act shall be known and may be cited as the “New Jersey Makes, the World Takes Act.”
b. A taxpayer that makes retail sales of New Jersey made products shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in the amount of $3.31 for every $100 of retail sales of New Jersey made products by the taxpayer.
c. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be prescribed by the director. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (54:10A-5). Any unused credit resulting from the limitations of this section may be carried forward, if necessary, for use in the seven privilege periods following the privilege period for which the credit is allowed
d. As used in this section:
“New Jersey made products” means products for which all or virtually all significant parts, processing, and labor that produce the products originate or are sourced from New Jersey. “New Jersey made products” shall not include any products that contain more than a negligible amount of content that originates or are sourced from outside New Jersey.
2. Notwithstanding any
provision of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et
seq.) to the contrary, the Director of the Division of Taxation in the
Department of the Treasury is authorized to adopt immediately upon filing with
the Office of Administrative Law such rules and regulations necessary to
implement this act, including, but not limited to, rules and regulations
specifying documentation and verification related to a claim for a tax credit
for making retail sales of New Jersey made products. The rules and regulations
adopted pursuant to this section shall be effective for a period not to exceed 18
months following the date of filing and may thereafter be amended, adopted, or
readopted by the director in accordance with the requirements of P.L.1968,
c.410 (C.52:14B-1 et seq.).
3. This act shall take effect immediately and apply to privilege periods beginning on or after the effective date of this bill.
STATEMENT
This bill allows a taxpayer under the corporation business tax to claim a tax credit for making retail sales of New Jersey made products. The credit amount is $3.31 for every $100 of retail sales of New Jersey made products that the taxpayer makes. The $3.31 credit amount is meant to approximate 50 percent of the State’s sales tax rate on $100 of retail purchases.