Bill Text: NJ S2451 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides businesses impacted by Hurricane Sandy a corporation business tax or gross income tax credit for certain replacement and repair of business property.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-01-08 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2451 Detail]
Download: New_Jersey-2012-S2451-Introduced.html
Sponsored by:
Senator JOSEPH PENNACCHIO
District 26 (Essex, Morris and Passaic)
SYNOPSIS
Provides businesses impacted by Hurricane Sandy a corporation business tax or gross income tax credit for certain replacement and repair of business property.
CURRENT VERSION OF TEXT
As introduced.
An Act providing businesses impacted by Hurricane Sandy a corporation business tax or gross income tax credit for certain replacement and repair of business property, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and N.J.S.54A:1-1 et seq.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. A taxpayer whose business property was destroyed, damaged, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy 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 10 percent of its cost of replacing or repairing business property in excess of the amount of its reimbursed business property loss, subject to the limitations of this section.
b. The amount of credit allowed pursuant to this section shall not exceed the lesser of:
(1) the unreimbursed business property loss of the business at the business' New Jersey locations impacted by Hurricane Sandy, or
(2) the cost of replacing or repairing business property of the business at the business' New Jersey locations impacted by Hurricane Sandy in excess of the reimbursed property loss at those locations.
c. The credit shall be allowed for cost of replacing or repairing business property placed in service at business' locations impacted by Hurricane Sandy on or before March 31, 2014 and shall be claimed for the privilege period of the taxpayer in which March 31, 2014 falls. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), 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 reduce the tax liability of the taxpayer 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 credits allowed pursuant to this section and any other credits shall be taken shall be determined by the director. The amount of the credit allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
d. As used in this section:
"Business property" means real property used in the taxpayer's business such as business structures and fixtures, and tangible personal property used in the taxpayer's business such as supplies, inventory, and equipment.
"Reimbursed business property loss" means loss compensated for by insurance or any other source.
2. a. taxpayer whose business property was destroyed, damaged, or lost as a result of wind, flooding, or other storm conditions caused by or attributable to Hurricane Sandy shall be allowed a credit against the tax 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 10 percent of its cost of replacing or repairing business property in excess of the amount of its reimbursed business property loss, subject to the limitations of this section.
b. The amount of credit allowed pursuant to this section shall not exceed the lesser of:
(1) the unreimbursed business property loss of the business at the business' New Jersey locations impacted by Hurricane Sandy, or
(2) the cost of replacing or repairing business property of the business at the business' New Jersey locations impacted by Hurricane Sandy in excess of the reimbursed property loss at those locations.
c. The credit shall be allowed for cost of replacing or repairing business property placed in service at business' locations impacted by Hurricane Sandy on or before March 31, 2014 and shall be claimed for the taxable year of the taxpayer in which March 31, 2014 falls. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be determined by the director. The amount of the credit allowable under this section which cannot be applied for the taxable year may be carried over, if necessary, to the seven taxable years following the taxable year for which the credit was allowed.
d. A business classified as a partnership for federal income tax purposes shall not be allowed a credit directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income, 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 except as otherwise provided by law.
A business that is a New Jersey S Corporation shall not be allowed a credit directly, but the amount of 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 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. As used in this section:
"Business property" means real property used in the taxpayer's business such as business structures and fixtures, and tangible personal property used in the taxpayer's business such as supplies, inventory and equipment.
"Reimbursed business property loss" means loss compensated for by insurance or any other source.
3. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the director may adopt immediately upon filing with the Office of Administrative Law such regulations as the Director of the Division of Taxation in the Department of the Treasury deems necessary which shall be effective for a period not to exceed 360 days following the date of enactment of P.L. , c. (C. ) and may thereafter be amended, adopted or readopted by the director in accordance with the requirements of P.L.1968, c.410.
4. This act shall take effect immediately.
STATEMENT
This bill assists New Jersey businesses that lost business property to Hurricane Sandy by providing the businesses a corporation business tax credit or a gross income tax credit for part of their replacement and repair costs.
A business whose business property was destroyed or damaged by Hurricane Sandy and that repairs or replaces that business property can qualify for a credit. The creditable amount of investment is that amount or replacement and repair costs that exceeds any reimbursement (by insurance or otherwise) for the business property loss.
The creditable business property reinvestment is for real property used in the business such as business structures and fixtures and tangible personal property used in the business such as supplies, inventory and equipment. The new business property must be put in service on or before March 31, 2014 allowing businesses 18 months following the storm to make the necessary investment and repairs and install any equipment.
