Bill > S3178

This bill clarifies how corporations will calculate their allocated net operating losses for the corporation business tax benefit certificate transfer program, a program that allows businesses to transfer certain tax benefits. Specifically, it mandates that for the tax year when a benefit is transferred, the "allocation factor," which is a multiplier used to determine how much of a company's net operating loss is relevant for New Jersey tax purposes, should be calculated using the same rules that were in place for a tax period starting on January 1, 2002, even if current laws would dictate a different calculation. This change is intended to provide a consistent and predictable method for determining these losses within the benefit transfer program and applies to benefits transferred on or after January 1, 2012.