Bill Text: NJ A570 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides tax credits to owners of certain food and drink establishments for eligible health and safety expenditures made during COVID-19 pandemic.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A570 Detail]
Download: New_Jersey-2024-A570-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman STERLEY S. STANLEY
District 18 (Middlesex)
SYNOPSIS
Provides tax credits to owners of certain food and drink establishments for eligible health and safety expenditures made during COVID-19 pandemic.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing tax credits to owners of certain food and drink establishments for eligible health and safety expenditures made during the COVID-19 pandemic.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For the first privilege period beginning after the date of enactment of P.L. , c. (pending before the Legislature as this bill), a taxpayer that is the owner of an alcoholic beverage manufacturer, bar, or restaurant 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 the costs incurred by the taxpayer during the state of emergency declared by the Governor in Executive Order No. 103 of 2020, as extended, for eligible health and safety expenditures.
b. The total credit allowed to a taxpayer during a privilege period shall not exceed $1,000.
c. 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 tax year 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.
d. The Director of the Division of Taxation in the Department of the Treasury shall promulgate procedures and forms by which a taxpayer may certify that the taxpayer has qualified for the credit under this section.
e. As used in this section:
"Alcoholic beverage manufacturer" means a limited brewery, winery, distillery, cidery, or meadery licensed pursuant to R.S.33:1-21.
"Bar" means a business establishment or any portion of a nonprofit entity that is devoted to the selling and serving of alcoholic beverages for consumption by the public, guests, patrons, or members on the premises and in which the serving of food, if served at all, is only incidental to the sale or consumption of such beverages.
"Eligible health and safety expenditures" means capital expenditures incurred and personal protective equipment purchased 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.
"Personal protective equipment" means coveralls, face shields, gloves, gowns, masks, respirators, and other equipment designed to protect the wearer from the spread of infection or illness.
"Restaurant" means a facility or part thereof in which food is prepared and provided or served for consumption on the premises.
2. a. For the first taxable year following the date of enactment of P.L. , c. (pending before the Legislature as this bill), a taxpayer that is the owner of an alcoholic beverage manufacturer, bar, or restaurant, 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 the costs incurred by the taxpayer during the state of emergency declared by the Governor in Executive Order No. 103 of 2020, as extended, for eligible health and safety expenditures.
b. The total credit allowed to a taxpayer during the taxable year shall not exceed $1,000.
c. A credit allowed pursuant to this section shall not reduce the tax liability otherwise due pursuant to N.J.S.54A:1-1 et seq. for a taxable year to an amount less than zero.
d. (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 to 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 the 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.
e. The Director of the Division of Taxation in the Department of the Treasury shall promulgate procedures and forms by which a taxpayer may certify that the taxpayer has qualified for the credit under this section.
f. As used in this section:
"Alcoholic beverage manufacturer" means a limited brewery, winery, distillery, cidery, or meadery licensed pursuant to R.S.33:1-21.
"Bar" means a business establishment or any portion of a nonprofit entity that is devoted to the selling and serving of alcoholic beverages for consumption by the public, guests, patrons, or members on the premises and in which the serving of food, if served at all, is only incidental to the sale or consumption of such beverages.
"Eligible health and safety expenditures" means capital expenditures incurred and personal protective equipment purchased 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.
"Personal protective equipment" means coveralls, face shields, gloves, gowns, masks, respirators, and other equipment designed to protect the wearer from the spread of infection or illness.
"Restaurant" means a facility or part thereof in which food is prepared and provided or served for consumption on the premises.
3. This act shall take effect immediately.
STATEMENT
This bill provides one-time, nonrefundable corporation business tax and gross income tax credits to taxpayers that are owners of alcoholic beverage manufacturers, bars, or restaurants, for eligible health and safety expenditures incurred by taxpayers during the COVID-19 state of emergency. The state of emergency began on March 9, 2020, and has not yet ended as of April 2022.
The total credit allowed to a taxpayer during the taxable year or privilege period will not exceed $1,000. A taxpayer will only be allowed to claim a credit provided under the bill in the first tax year following enactment of the bill but may include expenses incurred at any point during the state of emergency but prior to the claiming of the credit.
Under the bill, "eligible health and safety expenditures" means capital expenditures incurred and personal protective equipment purchased 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. "Personal protective equipment" is defined in the bill as coveralls, face shields, gloves, gowns, masks, respirators, and other equipment designed to protect the wearer from the spread of infection or illness.
