Bill > S3126

Introduced Session

This bill provides, for a five-year period, corporation business tax credits and gross income tax credits for insourcing business to New Jersey. Insourcing is bringing business functions to this State by closing down an out of country or out of State business unit and relocating it to New Jersey. For decades businesses have had incentives to outsource business functions, pursuing lower tax rates or labor costs. The credit provided by this bill aims to reverse that trend by incentivizing businesses to relocate to New Jersey and take advantage of the State's robust and diverse labor pool. The credits are equal to 35 percent of the net cost of shutting down the out of country business unit, or 25 percent of the net cost of shutting down the out of State business unit, and reestablishing an equivalent unit in New Jersey. The credit will be earnable in the five years between January 1, 2019 and December 31, 2023. The bill requires that the relocation be done pursuant to a written plan, and that the New Jersey full-time employees of the business be increased by the completed relocation. If the taxpayer reduces the amount of full-time employees in this State in any of the five years subsequent to the credit being allowed, the credit outstanding will be denied and any amount previously allowed will be subject to recapture by the State.

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Linda Greenstein (D)*,  Mike Testa (R)*, 

Introduced in the Senate, Referred to Senate Economic Growth Committee (on 10/03/2022)

Official Document