Bill > S3737

This bill revises various provisions of the New Jersey Corporation Business Tax Act. The key provisions include: - Increasing the dividend exclusion for certain subsidiary dividends from 95% to 100% for privilege periods ending on or after July 31, 2023. Expenses and deductions related to the excluded dividends will be limited to 5% of the dividends received. - Modifying the rules for calculating net operating loss deductions, including pooling net operating losses for a combined group and applying certain federal limitations to net operating loss deductions. - Defining and establishing tax treatment for "captive investment companies," "captive real estate investment trusts," and "captive regulated investment companies." - Expanding the director's authority to combine or de-combine taxpayers in certain circumstances to properly reflect the unitary business activities. - Changing the due date for filing the New Jersey corporate tax return to be tied to the federal corporate tax return due date. - Establishing nexus thresholds for corporations deriving receipts from New Jersey sources. - Providing a grace period on penalties and interest for additional tax liabilities resulting from the bill's provisions.

Budget and Finance

https://www.njleg.state.nj.us/bill-search/2022/S3737