Bill > A5323

This bill revises various provisions of the State tax law. Key changes include: - Modifying the definition of "entire net income" under the Corporation Business Tax Act, including changes to the treatment of dividends, foreign income, net operating losses, and other deductions. - Establishing new requirements for determining the members and reporting of combined groups under the Corporation Business Tax Act, including the ability to elect world-wide or affiliated group reporting. - Revising the allocation factor rules for combined groups, including a special rule for transportation companies. - Modifying the treatment of prior net operating loss conversion carryovers and current net operating losses under the combined reporting framework. - Defining the concept of "substantial nexus" for purposes of the Corporation Business Tax Act, based on a company's receipts or transactions in the State. - Providing penalty and interest relief for certain underpayments resulting from changes made by this bill. - Aligning the sourcing rules for the Gross Income Tax Act with the Corporation Business Tax Act for businesses with operations both within and outside of New Jersey.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2022/A5323