Bill > S4370

Introduced Session

This bill, designated as the "Road to Tax Relief Act," provides various forms of tax relief to certain businesses and employees who are adversely impacted by a public highway project, such as the ongoing repair of Interstate 80 in Morris County after the discovery of numerous sinkholes and voids along the roadway. Specifically, a retail business establishment that operates within an impacted construction zone would be entitled to claim a refundable credit against the remittance required under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.) in the amount of taxes collected at the establishment during each month in which the public highway project remains ongoing, less the portion of the tax that is constitutionally dedicated to the Property Tax Relief Fund. To claim the credit, the retail business establishment would be required to submit an application to the Director of the Division of Taxation (director) to verify that the retail business establishment operates within an impacted construction zone. Upon approval of the application, the retail business establishment would be permitted to claim a refundable credit against the requirement to remit any tax collections for which the credit is claimed, subject to the appropriation of funds for this purpose. The bill also appropriates such amounts as are necessary to defray the costs of the credits against sales tax remittances. Under the bill, an "impacted construction zone" is defined as any area immediately surrounding a public highway project within which area the occurrence of the public highway project impedes or blocks the normal and reasonable flow of traffic or otherwise restricts access to business establishments located within the area. The bill also defines a "retail business establishment" to include any small business, with no more than 50 full-time employees, that maintains a fixed permanent location where goods are exhibited or services are offered on an appointment or walk-in basis. Additionally, the bill provides gross income tax and corporate income tax credits to retail business establishments operating within an impacted construction zone in the amount of the revenue losses experienced by the establishment as a result of the public highway project. To claim the credit, the retail business establishment would be required to apply to the director for a certification of the establishment's revenue loss for the applicable tax period. Under the bill, the retail business establishment's revenue loss would be calculated based on the difference between: (1) the "baseline receipts," which include the average sum of the actual receipts, in dollars, received in compensation for goods and services sold at the establishment during the dates comprising the applicable relief period in the four prior years; and (2) the "actual receipts," which include the sum of the actual receipts, in dollars, received in compensation for goods and services sold at a retail business establishment located within an impacted construction zone during the relief period. After approval of the certificate of revenue loss, the retail business establishment would be permitted to claim the tax credit. However, the bill also permits the retail business establishment to apply for a tax credit transfer certificate so that part or all of the credit awarded may be sold or assigned in the tax period during which the tax credit transfer certificate is received. Lastly, the bill also provides gross income tax credits to the employees of retail business establishments operating within an impacted construction zone based on the amount of lost wages experienced by the employee as a result of a modification or reduction to their work schedule due to the impacts of a public highway project. To claim the credit, the employee would be required to apply to the director for a certification of lost wages for the applicable tax period. Under the bill, the employee's lost wages would be calculated based on the difference between: (1) the "baseline wages," which include the compensation that an employee would have otherwise received during the relief period for services rendered at a business establishment had the employee's work schedule not been modified or reduced as a result of the impacts of a public highway project; and (2) the "actual wages," which include the actual compensation received by an employee during the relief period for services rendered at a business establishment.

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Tony Bucco (R)*,  Parker Space (R)*, 

Introduced in the Senate, Referred to Senate Transportation Committee (on 05/12/2025)

Official Document