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  • NJ A4033
  • Establishes program in EDA providing tax credits and exemptions to certain qualified data centers.
Introduced
(7/21/2016)
In Committee
(1/30/2017)
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
This bill provides that the New Jersey Economic Development Authority (EDA) is to establish a program to provide tax credits and exemptions to qualified data centers for the purpose of encouraging qualified data centers to remain in or relocate to the State. Under the bill, a qualified data center means a business located in this State which meets the employment and capital expenditure requirements provided in the bill and whose operations consist primarily of using computer servers and related equipment and support staff for the processing, storage, and distribution of electronic data. In order to be considered eligible by the EDA as a qualified data center, a qualified data center is to submit to the EDA proof that the qualified data center placed one or more qualified data centers in service in this State; has made a capital investment of not less than $50,000,000 in this State; and has hired not fewer than 10 full-time employees in this State after the bill's effective date. In order to maintain eligibility as qualified data center, a qualified data center is to employ not fewer than 50 full-time employees in this State for a 36 month period following the month in which the full-time employment creation requirement is first met. A qualified data center is to certify annually to the EDA that the qualified data center employs not fewer than 50 full-time employees in this State until the 36 month period is complete. A qualified data center's failure to employ not fewer than 50 full-time employees in this State during the 36 month period is to result in the qualified data center's ineligibility to receive tax credits or exemptions after the date that the authority determines a qualified data center is no longer. A qualified data center is to be ineligible to receive tax credits or exemptions under the bill's provisions after the completion of the 36 month period of qualification. The bill provides that the EDA is to award qualified data centers tax credits and exemptions for a period of up to 20 years if the qualified data center redevelops and relocates to an abandoned commercial property and employs not fewer than 50 full-time employees in this State for a 60 month period. Under the bill, receipts from the sale or use of energy and utility service to qualified data centers are exempt from the tax imposed under the State's sales and use tax. Further, receipts from the sale or use of equipment to a qualified data center are exempt from the tax imposed under the State's sales and use tax provided the equipment is necessary to the operation of a qualified data center as determined by the EDA. The bill also provides corporation business tax credits and gross income tax credits to qualified data centers. The credits are equal to 15 percent of the cost of employee compensation expenses related to meeting the employment criteria provided under the bill.
Commerce and Economic Development
Reported and Referred to Assembly Appropriations Committee  (on 1/30/2017)
 
 

Date Chamber Action Description
1/30/2017 Assembly Commerce and Economic Development Hearing (19:00 1/30/2017 )
1/30/2017 A Reported and Referred to Assembly Appropriations Committee
1/30/2017 Assembly Commerce and Economic Development Hearing (13:30 1/30/2017 Committee Room 16, 4th Floor)
7/21/2016 A Introduced, Referred to Assembly Commerce and Economic Development Committee
Date Motion Yea Nay Other
Detail 1/30/2017 Assembly Commerce and Economic Development Committee: Reported Favorably 7 3 2