Bill Text: NJ S198 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides a corporation business tax credit for contributions to support facilities construction, expansion, renovation and upgrade at New Jersey public and independent institutions of higher education.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S198 Detail]
Download: New_Jersey-2010-S198-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator JIM WHELAN
District 2 (Atlantic)
Senator ROBERT M. GORDON
District 38 (Bergen)
SYNOPSIS
Provides a corporation business tax credit for contributions to support facilities construction, expansion, renovation and upgrade at New Jersey public and independent institutions of higher education.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act allowing a credit against the corporation business tax for support to public and independent institutions of higher education 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 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 5% of the amount donated by the taxpayer during the privilege period to a public or independent institution of higher education in New Jersey to fund the construction, improvement or expansion of higher education buildings.
b. As used in this section:
"Higher education buildings" means buildings, structures and facilities required for the operation of public or independent institutions of higher education;
"Independent institutions of higher education" means independent colleges or universities incorporated and located in New Jersey, which by virtue of law or character or license, are nonprofit educational institutions authorized to grant academic degrees and which provide a level of education which is equivalent to the education provided by the State's public institutions of higher education as attested by the receipt of and continuation of regional accreditation by the Middle States Association of Colleges and Schools, and which are eligible to receive State aid under the provisions of the Constitution of the United States of America and the Constitution of the State of New Jersey, but does not include an educational institution dedicated primarily to the education or training of ministers, priests, rabbis, or other professional persons in the field of religion;
"Public institutions of higher education" means Rutgers, The State University, the State colleges and universities established pursuant to chapter 64 of Title 18A of the New Jersey Statutes, the New Jersey Institute of Technology, the University of Medicine and Dentistry of New Jersey, the county colleges, and any other public university or college now or hereinafter established or authorized by law.
c. The amount of the credits applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, 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, shall not exceed 50% 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. The priority in which the credits allowed pursuant to this section and any other credits shall be taken shall be as determined by the Director of the Division of Taxation. 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 for any other reason may be carried over, if necessary, to the seven privilege periods following a credit's privilege period.
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 acquired by the partnership 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. For the purposes of subsection c. of this section, the amount of tax liability which would be otherwise due of a taxpayer is that proportion of the total liability of the taxpayer that the taxpayer's share of the partnership income or gain included in gross income bears to the total gross income of the taxpayer. The amount of credit of a taxpayer in respect of a distributive share of partnership income otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection or for any other reason may be carried over by the taxpayer, if necessary, to the seven privilege periods following a credit's privilege period.
2. This act shall take effect immediately and shall first apply to privilege periods beginning on or after July 1 next following enactment.
STATEMENT
This bill provides for a tax credit under the corporation business tax for funds donated to support facilities construction, expansion, renovation and upgrade at New Jersey public and independent institutions of higher education. The credit will equal 5% of the amount donated to the institution for facilities support. The amount of the tax credit, in addition to any other credits received by the taxpayer, may not exceed 50% of the tax liability otherwise due.
The purpose of this bill is to provide an incentive for private entities to partner with New Jersey public and independent colleges and universities on facilities construction and expansion.
