Bill Text: NJ A4856 | 2022-2023 | Regular Session | Introduced
Bill Title: Provides corporation business tax and gross income tax credits to long-term care facilities that increase number of residential units reserved for single occupancy by at least five percent.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-11-14 - Introduced, Referred to Assembly Homeland Security and State Preparedness Committee [A4856 Detail]
Download: New_Jersey-2022-A4856-Introduced.html
Sponsored by:
Assemblywoman SADAF F. JAFFER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman GABRIELA M. MOSQUERA
District 4 (Camden and Gloucester)
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Provides corporation business tax and gross income tax credits to long-term care facilities that increase number of residential units reserved for single occupancy by at least five percent.
CURRENT VERSION OF TEXT
As introduced.
An Act providing corporation business tax and gross income tax credits to long-term care facilities, 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. A taxpayer that owns and operates a long-term care facility and increases the number of residential units reserved for single occupancy at the long-term care facility by at least five percent during the privilege period shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the credit shall be $100 for every five-percent increase in the number of units reserved for single occupancy at the long-term care facility, but shall not exceed $2,000 in the privilege period.
b. 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 of the Division of Taxation. 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). The amount of the tax credit otherwise allowable under this section that cannot be applied for the taxable year due to the limitations of this subsection or under other provisions of P.L.1945, c.162 (C.54:10A-5), shall not be carried forward.
c. As used in this section, "long-term care facility" means a nursing home, assisted living residence, comprehensive personal care home, residential health care facility, or dementia care home licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).
2. a. A taxpayer that owns and operates a long-term care facility and increases the number of residential units reserved for single occupancy at the long-term care facility by at least five percent during the taxable year 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. The amount of the credit shall be $100 for every five-percent increase in the number of units reserved for single occupancy at the long-term care facility, but shall not exceed $2,000 in the privilege period.
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the Director of the Division of Taxation. The amount of the credit applied under this section against the tax imposed pursuant to "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year, together with any other credits allowed by law, shall not reduce the tax liability of the taxpayer to an amount less than zero. The amount of the tax credit otherwise allowable under this section that cannot be applied for the taxable year due to the limitations of this subsection or under other provisions of N.J.S.54A:1-1 et seq., shall not be carried forward.
c. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed a tax credit pursuant to this section directly, but the amount of tax credit of a taxpayer in respect of a distributive share of entity income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the entity that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the entity for its taxable year ending within or with the taxpayer's taxable year.
(2) A New Jersey S Corporation shall not be allowed a tax credit pursuant to this section directly, but the amount of tax credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.
d. As used in this section, "long-term care facility" means a nursing home, assisted living residence, comprehensive personal care home, residential health care facility, or dementia care home licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).
3. This act shall take effect immediately and apply to tax years and privilege periods beginning on or after the date of enactment.
STATEMENT
This bill allows taxpayers that own and operate long-term care facilities licensed by the State to claim a credit against the corporate business tax or the gross income tax if they increase the number of residential units reserved for single occupancy at the long-term care facility by at least five percent. The amount of the credit is $100 for every five-percent increase in the number of units reserved for single occupancy, up to $2,000 for the taxable year or privilege period.
