Bill > S2658

This bill, known as the "New Jersey Makes, the World Takes Act," allows businesses that pay the corporation business tax in New Jersey to receive a tax credit for making retail sales of products manufactured in the state. Specifically, for every $100 in retail sales of "New Jersey made products" – defined as goods where all or virtually all significant parts, processing, and labor originate from New Jersey – a taxpayer will receive a credit of $3.31. This credit amount is intended to be roughly half of the state's sales tax rate on $100 of retail purchases. The bill also clarifies that the order of applying this credit with other tax credits will be determined by the Director of the Division of Taxation, and that the credit cannot reduce a company's tax liability below a statutory minimum; any unused credit can be carried forward for up to seven years. Furthermore, the Director of the Division of Taxation is empowered to immediately adopt necessary rules and regulations to implement the act, which will take effect immediately and apply to tax periods starting on or after the bill's enactment.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/S2658