Bill Text: NJ A3861 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides corporation business tax credits and gross income tax credits to certain manufacturers who donate green or sustainable products to schools.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-02-21 - Introduced, Referred to Assembly Education Committee [A3861 Detail]
Download: New_Jersey-2012-A3861-Introduced.html
Sponsored by:
Assemblyman SCOTT RUDDER
District 8 (Atlantic, Burlington and Camden)
Assemblyman CHRISTOPHER J. BROWN
District 8 (Atlantic, Burlington and Camden)
SYNOPSIS
Provides corporation business tax credits and gross income tax credits to certain manufacturers who donate green or sustainable products to schools.
CURRENT VERSION OF TEXT
As introduced.
An Act providing corporation business tax credits and gross income tax credits to certain manufacturers donating green or sustainable products to schools, 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 P.L.1945, c.162 (C.54:10A-5) in an amount equal to 100 percent of the fair market value of all green or sustainable products that are manufactured by the taxpayer and donated to a school, for the direct and exclusive use of the school, during the privilege period, up to a maximum credit of $5,000 per privilege period.
b. (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the product manufactured and donated by the taxpayer is a green or sustainable product. The application for certification shall specifically indicate the date of donation, the name and location of the school receiving the donated product, a description of the product donated, and the fair market value for the donated product. The commissioner shall prescribe the form for the application for certification and may require the submission of supplemental materials with an application, including but not limited to a copy of a receipt for donation, prepared by a recipient school.
(2) The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification that the product manufactured and donated by the taxpayer is a green or sustainable product, and may consult with the Department of Education and the director in making the determination as to the issuance of a certification.
(3) Upon making a determination, the Commissioner of Environmental Protection shall provide written notification to the taxpayer indicating the commissioner's certification that the product manufactured and donated by the taxpayer is a green or sustainable product, and shall submit a copy thereof to the director. In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the commissioner's written notification.
c. 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, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not exceed 50 percent of the tax 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 (C.54:10A-5). The order of priority of the application of credits allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director. The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 (C.54:10A-1 et seq.) may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
d. As used in this section:
"Fair market value" means the fair market value of the green or sustainable product on the date it is donated to the recipient school.
"Green or sustainable product" means a product which contributes to an improved environment, supports State environmental and energy goals, and results in important environmental benefits to the State, and includes: energy conservation, energy efficient or renewable energy technologies, recycled products and materials, products to reduce air pollution, greenhouse gas emissions, solid waste, or water usage, or other related products. A "green or sustainable product" may also include a product related to a high performance green building, as defined pursuant to section 1 of P.L.2007, c.269 (C.52:32-5.3).
"School" means a private or public school, or district, as defined pursuant to N.J.S.18A:1-1 or a charter school established pursuant to the "Charter School Program Act of 1995," P.L.1995, c.426 (C.18A:36A-1 et seq.).
2. a. A taxpayer operating a business as a sole proprietor or through a partnership shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 100 percent of the fair market value of all green or sustainable products that are manufactured by the taxpayer and donated to a school, for the direct and exclusive use of the school, during the taxable year, up to a maximum credit of $5,000 per taxable year.
b. (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall file an application for a certification from the Commissioner of Environmental Protection that the product manufactured and donated by the taxpayer is a green or sustainable product. The application for certification shall specifically indicate the date of donation, the name and location of the school receiving the donated product, a description of the product donated, and the fair market value for the donated product. The commissioner shall prescribe the form for the application for certification and may require the submission of supplemental materials with an application, including but not limited to a copy of a receipt for donation, prepared by a recipient school.
(2) The Commissioner of Environmental Protection shall have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification that the product manufactured and donated by the taxpayer is a green or sustainable product, and may consult with the Department of Education and the director in making the determination as to the issuance of a certification.
(3) Upon making a determination, the Commissioner of Environmental Protection shall provide written notification to the taxpayer indicating the commissioner's certification that the product manufactured and donated by the taxpayer is a green or sustainable product, and shall submit a copy thereof to the director. In filing a tax return that includes a claim for the credit allowed pursuant to this section, the taxpayer shall include a copy of the commissioner's written notification.
c. The amount of the credit applied under this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," shall not exceed 50 percent of the tax liability otherwise due. The order of priority of the application of credits allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director.
d. A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
e. As used in this section:
"Fair market value" means the fair market value of the green or sustainable product on the date it is donated to the recipient school.
"Green or sustainable product" means a product which contributes to an improved environment, supports State environmental and energy goals, and results in important environmental benefits to the State, and includes: energy conservation, energy efficient or renewable energy technologies, recycled products and materials, products to reduce air pollution, greenhouse gas emissions, solid waste, or water usage, or other related products. A "green or sustainable product" may also include a product related to a high performance green building, as defined pursuant to section 1 of P.L.2007, c.269 (C.52:32-5.3).
"School" means a private or public school, or district, as defined pursuant to N.J.S.18A:1-1 or a charter school established pursuant to the "Charter School Program Act of 1995," P.L.1995, c.426 (C.18A:36A-1 et seq.).
3. This act shall take effect immediately and apply to privilege periods and taxable years on or after January 1 next following the date of enactment.
STATEMENT
This bill would provide a corporation business tax (CBT) credit or gross income tax (GIT) credit to certain manufacturers who donate green or sustainable products to schools.
The bill provides a $5,000 maximum CBT credit or $5,000 maximum GIT credit, as applicable, for the fair market value of green or sustainable products manufactured by the taxpayer and donated to a school district or a public, private, or charter school, which is used directly and exclusively by a school.
To qualify for the CBT or GIT credits, the taxpayer would file an application for a certification from the Commissioner of Environmental Protection that the product donated by the taxpayer is a green or sustainable product. The Commissioner of Environmental Protection would have 90 days from the date of receipt of a complete application to make a determination as to the issuance of a certification, and may consult with the Department of Education and the Director of the Division of Taxation. Upon making a determination, the Commissioner of Environmental Protection would provide written notification to the taxpayer and submit a copy thereof to the director. A taxpayer would include a copy of the commissioner's written notification when filing a tax return that includes a claim for the credit.
The bill defines a "green or sustainable product" to mean a product which contributes to an improved environment, supports State environmental and energy goals, and results in important environmental benefits to the State, and includes: energy conservation, energy efficient or renewable energy technologies, recycled products and materials, products to reduce air pollution, greenhouse gas emissions, solid waste, or water usage, or other related products. A "green or sustainable product" may also include a product related to a high performance green building.
