Assembly Commerce and Economic Development Committee Statement to Assembly, No. 5389 (March 8, 2021)

Summary

An Assembly Commerce and Economic Development Committee statement to Assembly, No. 5389, State of New Jersey, dated March 8, 2021, reporting the bill favorably with committee amendments. The bill allows corporation business tax and gross income tax credits for nonresidential and multifamily building improvements to reduce the spread of COVID-19, such as bi-polar ionization, ultraviolet lighting, sneeze guards and ventilation, for expenditures in calendar years 2020, 2021 and 2022. The credit equals 75 percent of expenditures, capped at $100,000, for locations under 30,000 square feet, and 50 percent, capped at $250,000, for larger locations. Taxpayers must add back deducted expenditures, and unused credit may be carried forward for up to seven years.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

ASSEMBLY,
No. 5389

with
committee amendments

STATE
OF NEW JERSEY

DATED: MARCH
8, 2021

The Assembly Commerce and Economic Development
Committee reports favorably and with committee amendments Assembly Bill No.
5389.

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 Assembly Bill
No. 5389 is identical to Senate Bill No. 3305 (1R), which also was amended and
reported by the committee.

COMMITTEE AMENDMENTS :

The committee amended the bill to:

- add a provision allowing tax credits for corporation
business taxpayers;

- allow a credit for multifamily buildings, in
addition to allowing a credit for nonresidential buildings;

- allow the carryforward of unused credit for up to
seven years;

-
require a taxpayer to add back into their calculation of income the amount of
any expenditures outlined in the bill that the taxpayer deducted; and

-
allow any immediately issued regulations to be in effect for 18 months, instead
of 360 days.

File and source

File

2021-03-08_ACE_A5389_S1.htm

Size

7,409 bytes

SHA-256

0f10121e8ed3c4190727c195942276649aad78e63af2ce8d7379e4edc479b67c

Our copy

2021-03-08_ACE_A5389_S1.htm

Original

No public link identified.