Bill Text: NJ A1849 | 2010-2011 | Regular Session | Introduced
Bill Title: Allows corporation business tax and gross income tax credits for 50% of purchase cost of diesel engine conversion devices.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2010-01-25 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A1849 Detail]
Download: New_Jersey-2010-A1849-Introduced.html
Sponsored by:
Assemblyman REED GUSCIORA
District 15 (Mercer)
SYNOPSIS
Allows corporation business tax and gross income tax credits for 50% of purchase cost of diesel engine conversion devices.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing corporation business tax and gross income tax credits for diesel engine conversion devices and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-5), in an amount equal to 50% of the cost of purchase of a qualifying device by the taxpayer during the privilege period. The allowed credit shall not include any portion of the cost of installation or maintenance of the qualifying device.
b. The order of priority of the credit allowed under this section and any other credits allowed by law shall be as 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 for a privilege period: shall not exceed 10% of the tax liability otherwise due; shall not, together with any other credits allowed by law, exceed 50% of the liability otherwise due; and 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. An unused amount of credit may be carried forward, if necessary, for use in future privilege periods.
c. The State Treasurer shall annually, in consultation with the Department of Environmental Protection, determine the devices and equipment that are qualifying devices for the purposes of this section.
d. For the purposes of this section, "qualifying device" means a device or other equipment sold in a kit for the purposes of converting the diesel engine on a motor vehicle powered by such an engine to operate on types of fuel other than diesel, and determined to be a qualifying device by the State Treasurer and the Department of Environmental Protection pursuant to subsection c. of this section.
2. a. A taxpayer shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 50% of the cost of purchase of a qualifying device by the taxpayer during the privilege period. The allowed credit shall not include any portion of the cost of installation or maintenance of the qualifying device.
b. The amount of the credit
applied under this section against the tax otherwise due under N.J.S.54A:1-1 et
seq. for a taxable year shall not exceed $10,000 for a taxable year ($5,000 for
married
taxpayers filing separately). An unused amount of credit may be carried
forward, if necessary, for use in future taxable years.
c. The director shall annually recompute the maximum credit amounts provided by subsection b. of this section by multiplying the maximum credit amounts by the consumer price index for all-urban consumers for the New York City and Philadelphia metropolitan areas, as prepared by the United States Department of Labor as of the close of the 12-month period ending on August 31 of the calendar year prior to the calendar year in which the taxable year begins, divided by that index as of the close of the 12-month period ending on August 31 of the calendar year in which P.L. , c. (C. ) (pending before the Legislature as this bill) takes effect. Notwithstanding the amounts provided in subsection b. of this section, a taxpayer shall use the amount as computed by the director for the applicable taxable year. The director shall round the recomputed maximum credit amounts to the next highest multiple of $5.
d. The State Treasurer shall annually, in consultation with the Department of Environmental Protection, determine the devices and equipment that are qualifying devices for the purposes of this section.
e. For the purposes of this section, "qualifying device" means a device or other equipment sold in a kit for the purposes of converting the diesel engine on a motor vehicle powered by such an engine to operate on types of fuel other than diesel, and determined to be a qualifying device by the State Treasurer and the Department of Environmental Protection pursuant to subsection d. of this section.
3. This act shall take effect immediately, and section 1 shall apply to privilege periods beginning on or after the January 1 next following enactment and section 2 shall apply to taxable years beginning on or after the January 1 next following enactment.
STATEMENT
This bill allows corporation business tax and New Jersey gross income tax credits for 50% of the cost of purchase of qualifying devices for the conversion of diesel-powered engines. "Qualifying device" is defined under the bill as a device or other equipment sold in a kit for the purposes of converting the diesel engine on a motor vehicle powered by such an engine to operate on types of fuel other than diesel. The bill also directs the State Treasurer, in consultation with the Department of Environmental Protection, to determine annually the devices and equipment that are qualifying devices.
