Bill > A1306

Introduced Session

The bill provides corporation business tax and gross income tax credits for any qualified construction costs incurred by a taxpayer for the completion of a qualified construction project at the site of an abandoned commercial building in the State. The bill defines "commercial building" as a building of at least 100,000 square feet that is used for commercial purposes. Under the bill, a "qualified construction project" includes any of the following: the demolition of an abandoned commercial building; the construction of a new commercial building at the demolition site of an abandoned commercial building; the removal of debris from the demolition site of an abandoned commercial building; the remediation of a demolition site; or the repurposing of an abandoned commercial building. The amount of the tax credit is capped at the lesser of the following: (1) 25 percent of the qualified construction costs incurred by the taxpayer during the privilege period or taxable year; or (2) $1,000,000. To qualify for the tax credit allowed under the bill, a taxpayer would be required to apply to the Division of Taxation in the Department of the Treasury for a certification that provides: (1) that the qualified construction project meets the requirements of the bill; and (2) the amount of the tax credit calculated pursuant to the bill. The bill requires the division to adopt rules and regulations as are necessary to implement the bill's provisions. The bill would also limit the cumulative total of tax credits awarded pursuant to the bill to $5 million. Finally, the bill would require, no later than one year after the expiration of the tax credits provided pursuant to the bill, the division to prepare and submit to the Governor, the State Treasurer, and the Legislature a report that, at a minimum, summarizes the effectiveness of the tax credit in incentivizing the replacement of abandoned commercial buildings with newly constructed commercial buildings. Construction of commercial buildings throughout the State has increased exponentially during recent years. Many commercial buildings have been constructed on the State's farmland, which has adversely impacted the State's farming sector. Construction of commercial buildings on farmland decreases the amount of land in the State that is able to be used for farming purposes and, in many cases, destroys prime soil, which is limited to areas where the soil naturally occurs and, once destroyed, cannot be recreated. Farmland is an important economic and environmental resource for New Jersey and, for this reason, it is important take steps to ensure farmland is used for farming purposes and not converted into commercial buildings. Lands currently used for commercial purposes should continue to be used for commercial purposes. For this reason, abandoned commercial buildings should be replaced with newly constructed commercial buildings at the same location. This bill would encourage the development of commercial buildings throughout the State while also protecting the State's farmland.

AI Summary

Committee Categories

Alex Sauickie (R)*,  Dawn Fantasia (R),  Michael Inganamort (R), 

Introduced, Referred to Assembly State and Local Government Committee (on 01/09/2024)

Official Document