Committee Statement - Senate Bill No. 3305 (First Reprint), Assembly Commerce and Economic Development Committee

Summary

Statement to [First Reprint] Senate, No. 3305 with committee amendments, State of New Jersey, dated March 8, 2021, from the Assembly Commerce and Economic Development Committee, which reports Senate Bill No. 3305(1R) favorably. As amended, the bill allows corporation business tax and gross income tax credits for nonresidential and multifamily building improvement expenses to reduce the spread of COVID-19. The statement lists qualifying expenditures such as infrared thermometers, transparent sneeze guards or shields and ventilation, with credits of 75 percent up to $100,000 for smaller locations and 50 percent up to $250,000 for locations of 30,000 square feet or more. It says the bill is identical to Assembly Bill No. 5389, and that the committee amended it to allow a credit for multifamily buildings.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                          STATEMENT TO

                             [First Reprint]
                        SENATE, No. 3305
                         with committee amendments



       STATE OF NEW JERSEY
                           DATED: MARCH 8, 2021

          The Assembly Commerce and Economic Development Committee
      reports favorably and with committee amendments Senate Bill No.
      3305(1R).
          This bill, as amended, allows corporation business tax and gross
      income tax credits for nonresidential and multifamily building
      improvement expenses to reduce the spread of COVID-19. The
      credit will be allowed for expenditures made during calendar years
      2020, 2021, and 2022.
         The following expenditures will be includable in calculation of
      the credit: expenditures for (1) bi-polar ionization and ultraviolet
      lighting to disinfect indoor air and surfaces, including in elevators
      and work areas; (2) infrared thermometers for screening visitors in
      common areas; (3) transparent sneeze guards or shields; (4)
      touchless entryway and security; (5) ventilation; and (6) other
      materials, supplies, and equipment to reduce the spread of COVID-
      19 and necessary to create a safe environment for building
      occupants.
         The amount of credit allowed will be equal to: 75 percent of the
      taxpayer’s expenditures for a location of less than 30,000 square
      feet, but the credit for such expenditures cannot exceed $100,000;
      and 50 percent of the taxpayer’s expenditures for a location of
      30,000 square feet or more, but the credit for such expenditures
      cannot exceed $250,000. A taxpayer that claims a credit pursuant to
      this bill will be required to add back into their calculation of income
      the amount of any expenditures that the taxpayer deducted. This
      requirement ensures that the taxpayer does not get the double
      benefit of being allowed to deduct expenses from income and get a
      credit against their tax liability to cover the cost of those expenses.
         As amended and reported by the committee, Senate Bill No.
      3305 (1R) is identical to Assembly Bill No. 5389, which also was
      amended and reported by the committee.
                                 2

COMMITTEE AMENDMENTS:
    The committee amended the bill to allow a credit for multifamily
buildings, in addition to allowing a credit for nonresidential buildings.


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