Bill Text: NJ A4117 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides corporation business tax credit to taxpayers that develop qualified native pollinator habitat on undeveloped property.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-04-04 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A4117 Detail]
Download: New_Jersey-2024-A4117-Introduced.html
Sponsored by:
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
SYNOPSIS
Provides corporation business tax credit to taxpayers that develop qualified native pollinator habitat on undeveloped property.
CURRENT VERSION OF TEXT
As introduced.
An Act providing tax credits to taxpayers that develop qualified native pollinator habitat on undeveloped property and 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. For privilege periods beginning on or after January 1 next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a taxpayer that owns or leases at least 25 contiguous acres of undeveloped property in the State, and that develops qualified native pollinator habitat on that property, and that meets the requirements of this section and the rules of regulations adopted pursuant thereto, shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to 50 percent of the reasonable cost expended for developing the qualified native pollinator habitat, up to $25,000.
b. (1) To qualify for the tax credit allowed pursuant to this section, the taxpayer shall apply for a certification from the secretary that certifies: (1) that the property developed is qualified native pollinator habitat; and (2) the amount of the tax credit. The application shall include the address and acreage of the undeveloped property, a description of the qualified native pollinator habitat, its precise locations on the property, the cost for developing it, appropriate documentation of those costs, and any other information as determined relevant by the department. Upon certification, the secretary shall submit a copy thereof to the taxpayer and the director. When filing a tax return that includes a claim for a credit pursuant to this section, the taxpayer shall include a copy of the certification issued by the secretary.
(2) The department may approve an application and issue a certification to a taxpayer that has previously been allowed a tax credit pursuant to this section, but in no case shall a taxpayer be approved and certified for more than $25,000 in total tax credits.
c. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the director. The amount of the credit applied pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) shall not reduce a taxpayer's tax liability for a privilege period 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). Any credit shall be valid in the privilege period in which the certification is approved.
d. The secretary, in consultation with the director, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to carry out the provisions of this section, including, but not limited to, criteria for what qualifies as undeveloped property.
e. On or before January 31 of each year, the secretary shall submit a report to the Governor, the State Treasurer, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature, on the effectiveness of the tax credit developing qualified native pollinator habitat in the State.
f. As used in this section:
"Department" means the Department of Agriculture.
"Director" means the Director of the Division of Taxation.
"Qualified native pollinator habitat" means an area of land developed as habitat beneficial for the feeding, nesting, and reproduction of native pollinators, such as bees, as determined by the department. "Qualified native pollinator habitat" shall utilize plants that are native to New Jersey.
"Reasonable cost" means the cost of developing qualified native pollinator habitat, including, but not necessarily limited to, the cost of seeds, plants, and the instillation thereof, determined to be reasonable by the department.
"Secretary" means the Secretary of Agriculture.
2. This act shall take effect immediately.
STATEMENT
This bill would provide corporation business tax credits to taxpayers that develop qualified pollinator habitat on their undeveloped properties.
Specifically, for privilege periods beginning on or after January 1 next following the effective date of this bill, a taxpayer that owns or leases at least 25 contiguous acres of undeveloped property in the State, that develops qualified native pollinator habitat on that property, and that meets the requirements of the bill, would be allowed a credit against the corporation business tax in an amount equal to 50 percent of the reasonable cost expended for developing the qualified native pollinator habitat, up to $25,000. For the purposes of the bill, qualified native pollinator habitat means an area of land developed as habitat beneficial for the feeding, nesting, and reproduction of native pollinators, such as bees, as determined by the department. Qualified native pollinator habitat must utilize plants that are native to New Jersey.
To qualify for the credit, a taxpayer would have to apply for a certification from the Secretary of Agriculture that certifies: (1) that the property developed is qualified native pollinator habitat; and (2) the amount of the tax credit. The application would include the address and acreage of the undeveloped property, a description of the qualified native pollinator habitat, its precise locations on the property, the cost for developing it, appropriate documentation of those costs, and any other information the department determines relevant. When filing a tax return that includes a claim for a credit pursuant to this bill, the taxpayer would have to include a copy of the certification issued by the Secretary of Agriculture.
Pollinators, such as bees, are extremely important to the State. Approximately one-third of all crops grown depend on pollinators for reproduction. Recently, however, the survival of many pollinators has been threatened by, among other things, habitat loss. This bill would incentivize the planting of native pollinator habitat on undeveloped property throughout the State.
