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  • NJ A196
  • Provides tax credit under corporation business tax and gross income tax for certain costs incurred in purchase and installation of certain environmentally responsible business equipment.
Introduced
(1/27/2016)
In Committee
(1/27/2016)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill provides a tax credit under the corporation business tax and the gross income tax for certain costs incurred in the purchase and installation of environmentally responsible business equipment. Under the bill, a taxpayer is eligible to elect to claim a credit in an amount equal to 10 percent of the amount paid for the purchase and installation of environmentally responsible business equipment which is used or consumed directly and exclusively by the taxpayer in that taxpayer's business, trade, or occupation. For purposes of the bill, environmentally responsible business equipment is any machinery, apparatus, or equipment which is used directly and primarily in producing, fabricating, processing, printing or imprinting tangible personal property, and which (1) has not previously been put in service in New Jersey, (2) has a useful life exceeding one year, and (3) is powered predominately by a system of renewable energy or exceeds by a substantial margin the average energy efficiency consumption or usage standards of all other machinery, apparatus, or equipment available to the taxpayer at the time of purchase. The bill provides that a taxpayer must first qualify for a credit in order to be eligible to claim a credit. To qualify, a taxpayer must file an application with the Commissioner of the Department of Environmental Protection who is responsible for issuing a certification denoting that the equipment purchased and installed by the taxpayer qualifies as environmentally responsible business equipment and is used or consumed directly and exclusively by the taxpayer in their business, trade, or occupation. The bill provides that the Commissioner of the Department of Environmental Protection has 90 days after the receipt of a complete application from a taxpayer to make a determination as to the issuance of a certification. If the application submitted by a taxpayer is certified, the director must submit the certification to the Director of the Division of Taxation in the Department of the Treasury and to the taxpayer. That certification is then used by the taxpayer in filing a tax return that includes a claim for the credit. The bill provides that the first privilege period or taxable year in which a taxpayer may use the credit is the privilege period or taxable year in which the certification is granted. The bill also provides that the amount of any unused credit may be carried forward, if, necessary to each of the seven privilege periods or taxable years following the period or year in which the credit is first allowed, but stipulates that a credit is not allowed if the environmentally responsible business equipment is used to secure another credit in the same or prior period or year by the same or another taxpayer. Additionally, the bill requires the Commission of the Department of Environmental Protection to establish a pre-certification process through which a taxpayer can determine if an expected purchase and installation of environmentally responsible business equipment would be eligible to qualify for a credit, and to develop rules and regulations, in consultation with the Director of the Division of Taxation in the Department of Treasury, establishing technical specifications and certification requirements for the qualification of environmentally responsible business equipment. The bill specifies that the pre-certification established by the commissioner may require the submission of certain written information describing the equipment to be purchased and how it is intended to be used or consumed, but that obtaining pre-certification from the commissioner is not required to qualify for a credit. The purpose of this bill is to encourage taxpayers to purchase and use more environmentally responsible business equipment in their business, trade, or occupation.
Commerce and Economic Development
Introduced, Referred to Assembly Commerce and Economic Development Committee  (on 1/27/2016)
 
 

Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly Commerce and Economic Development Committee
Date Motion Yea Nay Other
None specified