Bill

Bill > A1337


NJ A1337

Reduces CBT rate; retroactive to January 1, 2020.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill reduces the corporation business tax (CBT) tax rate from 9 percent to 2.5 percent of income for privilege periods ending after December 31, 2019, and provides for that tax rate to remain at 2.5 percent in perpetuity. Under the bill, the 2.5 percent rate is to apply to all CBT taxpayers. A "privilege period" is the 12 month accounting period for which tax is due for the privilege of doing business in the State. The sponsor's intent for the bill is to help businesses to withstand revenue losses incurred as a result of the government-enforced closure of businesses due to the COVID-19 pandemic, by allowing those businesses to keep a larger percentage of their earnings. The bill is to take effect immediately upon enactment and apply retroactively to January 1, 2020.

AI Summary

This bill reduces the corporation business tax (CBT) rate from 9 percent to 2.5 percent of income for privilege periods ending after December 31, 2019, and maintains the 2.5 percent rate in perpetuity for all CBT taxpayers. The bill aims to help businesses withstand revenue losses incurred due to the COVID-19 pandemic by allowing them to keep a larger percentage of their earnings. The bill takes effect immediately upon enactment and applies retroactively to January 1, 2020.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 01/09/2024)

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