Bill Text: NJ A5218 | 2020-2021 | Regular Session | Amended

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Bill Title: Allows certain taxpayers to accelerate depreciation of certain expenditures under corporation business and gross income taxes.

Spectrum: Slight Partisan Bill (Democrat 13-5)

Status: (Vetoed) 2022-01-10 - Absolute Veto, Received in the Assembly [A5218 Detail]

Download: New_Jersey-2020-A5218-Amended.html

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[First Reprint]

ASSEMBLY, No. 5218

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED JANUARY 7, 2021

 

 

Sponsored by:

Assemblyman  ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblyman  JOHN ARMATO

District 2 (Atlantic)

Assemblyman  P. CHRISTOPHER TULLY

District 38 (Bergen and Passaic)

 

Co-Sponsored by:

Assemblymen Mazzeo, Johnson, Dancer, Assemblywomen Dunn and Reynolds-Jackson

 

 

 

 

SYNOPSIS

     Allows certain restaurant owners to accelerate depreciation of certain expenditures under corporation business and gross income taxes.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Commerce and Economic Development Committee on March 8, 2021, with amendments.

  

An Act allowing certain restaurant owners to accelerate depreciation of certain expenditures under corporation business and gross income taxes, supplementing P.L.1945, c.162 and Title 54A of Revised Statutes.  

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  Notwithstanding paragraph (12) of subsection (k) of section 4 of P.L.1945, c.162 (C.54:10A-4), a taxpayer who is ¹the owner of¹ a small business restaurant ¹[owner] or an alcoholic beverage manufacturer¹ shall be allowed the additional depreciation allowance of subsection (k) of section 168 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.168) for up to $150,000 of eligible property expenditures for the restaurant ¹or alcoholic beverage manufacturer¹.  The director shall prescribe the rules and regulations necessary to carry out the provisions of this section.

     b.  As used in this section:

     ¹"Alcoholic beverage manufacturer" means a limited brewery, winery, distillery, cidery, or meadery licensed pursuant to R.S.33:1-10.¹ 

     "Director" means Director of the Division of Taxation in the Department of the Treasury.

     "Eligible property expenditures" means capital expenditures incurred by the taxpayer to comply with the health and safety requirements imposed under the executive orders issued by the Governor in response to the COVID-19 pandemic, including but not limited to the purchase of heaters and overhangs. 

     "Small business restaurant" means a restaurant as defined in section 1 of P.L.1983, c.488 (C.26:3E-1) with not more than 100 employees, but shall not include a restaurant ¹[with] if its owner also owns¹ more than two ¹[separate] restaurants that are operated under the same name as the small business restaurant at¹ locations outside the State.

 

     2.    a.  Notwithstanding section 26 of P.L.2004, c.65 (C.54A:5-1.2), a taxpayer who is ¹the owner of¹ a small business restaurant ¹[owner] or an alcoholic beverage manufacturer¹ shall be allowed the additional depreciation allowance of subsection (k) of section 168 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.168) for up to $150,000 of eligible property expenditures for the restaurant ¹or alcoholic beverage manufacturer¹, provided that, section 26 of P.L.2004, c.65 (C.54A:5-1.2) prohibited such additional depreciation allowance.  The director shall prescribe the rules and regulations necessary to carry out the provisions of this section.

     b.    As used in this section:

     ¹"Alcoholic beverage manufacturer" means a limited brewery, winery, distillery, cidery, or meadery licensed pursuant to R.S.33:1-10.¹ 

     "Director" means Director of the Division of Taxation in the Department of the Treasury.

     "Eligible property expenditures" means capital expenditures incurred by the taxpayer to comply with the health and safety requirements imposed under the executive orders issued by the Governor in response to the COVID-19 pandemic, including but not limited to the purchase of heaters and overhangs. 

      "Small business restaurant" means a restaurant as defined in section 1 of P.L.1983, c.488 (C.26:3E-1) with not more than 100 employees, but shall not include a restaurant ¹[with] if its owner also owns¹ more than two ¹[separate] restaurants that are operated under the same name as the small business restaurant at¹ locations outside the State.

 

     3.    This act shall take effect immediately ¹and shall be retroactive to March 9, 2020¹.