Bill > S1095

Introduced Session

This bill allows a taxpayer to apply for a corporation business tax credit equal to either: · 10% of the costs of new manufacturing equipment installed at a new or existing manufacturing facility located in a Smart Growth Area within this State, or · 10% of the costs of improvements or additions that result in the renovation, modernization or expansion of a manufacturing facility located in a Smart Growth Area, or · with respect to the employment of any new full-time employee hired and retained for at least 365 days following the effective date of the bill, the greater of 10% of the costs of training, salary, and benefits, including employer paid medical and pension contributions, or the deduction to which the employer would be entitled under existing law. The bill provides that expenditures in Smart Growth Areas for manufacturing equipment and manufacturing facility renovation, modernization, and expansion for which a credit is allowed under this bill will not be expenditures for which a credit will be allowed under the New Jobs Investment Tax Credit, the Manufacturing and Employment Investment Tax Credit, the Research and Development Credit, or the Effluent Treatment and Conveyance Equipment Credit. The bill defines "manufacturing equipment" as machinery, apparatus or equipment used in the production of tangible personal property that is eligible for the sales tax exemption for manufacturing equipment. That is machinery, apparatus, or equipment for use or consumption directly and primarily in the production of tangible personal property by manufacturing, processing, assembling, or refining, whose use is not incidental to those activities, and which has a useful life of more than one year. The bill defines a "manufacturing facility" as a business location, including but not limited to a factory, mill, or plant, at which more than 50% of the business personal property that is housed in the facility is manufacturing equipment. "Qualified manufacturing related job training" that would be eligible for a credit under the bill includes instruction through a county vocational school or county college within the State, instruction through any institution of post-secondary education located in the State that is accredited for this purpose by the Director of the Division of Taxation in the Department of the Treasury, and on-the-job training at sites within the State that are owned and operated by the trainee's employer. The bill also requires the Director of the Division of Taxation to submit a report to the Governor and the Legislature, on or before January 1, 2021, that includes a description of any increased departmental workload associated with administering the credit and an analysis of the effectiveness of the credit as an incentive for encouraging the employment of new manufacturing employees.

AI Summary

Committee Categories

Linda Greenstein (D)*,  Joe Vitale (D)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/31/2022)

Official Document