Bill
Bill > A5518
NJ A5518
NJ A5518Imposes 30 percent electric public utility windfall surtax on certain taxpayers with allocated taxable net income in excess of 20 percent above five-year average income under CBT.
summary
Introduced
03/24/2025
03/24/2025
In Committee
03/24/2025
03/24/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill imposes a 30 percent surtax, to be called the electric public utility windfall surtax, on the windfall income of electric public utilities. Under the bill, "windfall income" means the amount of allocated taxable net income of an electric public utility that is 20 percent greater than the average allocated taxable net income of the utility during the five immediately preceding privilege periods. The bill defines "allocated taxable net income" to mean the same as the term "taxable net income" is defined in the "Corporation Business Tax Act" for purposes of calculating a taxpayer's corporation business tax liability. The electric public utility windfall surtax is to be imposed in addition to the taxpayer's regular corporation business tax liability. No credits are to be allowed against the electric public utility windfall surtax, except for credits for installment payments, estimated payments made with a request for an extension of time for filing a return, or overpayments from prior privilege periods. All revenues collected from the electric public utility windfall surtax, except for amounts constitutionally dedicated for open space, farmland, and historic preservation, are to be annually appropriated to the Board of Public Utilities (board) for distribution to the ratepayers of each electric public utility subject to the electric public utility surtax. The bill requires the board to prescribe the method by which the funds appropriated from surtax proceeds are distributed, except that these monies are required to be distributed proportionally among all ratepayers of the electric public utility.
AI Summary
This bill imposes a 30 percent surtax, called the electric public utility windfall surtax, on electric utilities that experience significant income growth. Specifically, the surtax applies when an electric utility's taxable net income exceeds its five-year average income by more than 20 percent. The bill defines an "electric public utility" as a utility that transmits and distributes electricity within New Jersey, and "windfall income" as the portion of income that surpasses the 20 percent threshold. The surtax is in addition to existing corporation business taxes, and no standard tax credits will be allowed against it, except for certain installment or estimated payments. All revenue collected from the surtax, with the exception of constitutionally dedicated funds, will be annually appropriated to the Board of Public Utilities, which must distribute the funds proportionally among all ratepayers of the affected electric utility. The surtax will take effect for privilege periods beginning the January 1st following the bill's enactment, targeting utilities that have experienced unusually high profits and aiming to provide financial relief to utility customers.
Committee Categories
Transportation and Infrastructure
Sponsors (3)
Last Action
Introduced, Referred to Assembly Telecommunications and Utilities Committee (on 03/24/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5518 |
| BillText | https://pub.njleg.gov/Bills/2024/A6000/5518_I1.HTM |
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