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  • NJ A2215
  • Establishes a small business job creation and preservation account program to incentivize small business workforce expansion in New Jersey with income tax exclusions for interest.
Introduced
(1/27/2016)
In Committee
(3/20/2017)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill establishes a small business job creation and preservation account program to incentivize small business workforce expansion in New Jersey using income tax exclusions for interest under the corporation business tax (CBT) and gross income tax (GIT). The bill's small business job creation and preservation account program allows taxpayers to earn tax-free interest on account balances subsequently used to create or preserve full-time jobs in New Jersey. The bill limits the availability of the program to small businesses independently owned and operated, not dominant in their field, employing no more than 100 employees, and without a State tax assessment associated with fraud or negligence. To qualify for the bill's exclusion, small business job creation and preservation account balances must be used for business expenditures directly supporting the compensation of either: · new full-time workforce positions in this State; or · existing full-time workforce positions in this State, in the presence of significant financial challenges. Additionally, fund balances must be expended before the end of the third full tax period following the account's initial deposit for CBT taxpayers and the second full tax period for GIT taxpayers. The variance owes to the underlying taxes differing administrative requirements. Noncompliance with the expenditure requirements, result in inclusion of all previously excluded interest amounts for the tax year of noncompliance. The bill empowers the Director of the Division of Taxation, in consultation with the Executive Director of the New Jersey Economic Development Authority, to adopt regulations to implement the bill. The bill's exclusion is scheduled to apply to tax years beginning on or after the date of enactment.
2nd Reading in the Assembly, Commerce and Economic Development
Reported out of Assembly Committee, 2nd Reading  (on 3/20/2017)
 
 
Date Chamber Action Description
3/20/2017 Assembly Appropriations Hearing (19:00 3/20/2017 *A4177, A4597, S2997 (1R) are all pending referral)
3/20/2017 A Reported out of Assembly Committee, 2nd Reading
3/20/2017 Assembly Appropriations Hearing (19:00 3/20/2017 *A4177, A4597, S2997 (1R) are all pending referral*)
6/2/2016 A Reported and Referred to Assembly Appropriations Committee
6/2/2016 Assembly Commerce and Economic Development Hearing (13:30 6/2/2016 Committee Room 16, Fourth Floor)
1/27/2016 A Introduced, Referred to Assembly Commerce and Economic Development Committee
Date Motion Yea Nay Other
Detail 3/20/2017 Assembly Appropriations Committee: Reported Favorably 11 0 0
Detail 6/2/2016 Assembly Commerce and Economic Development Committee: Reported Favorably 11 0 1