Bill
Bill > S860
NJ S860
NJ S860Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill allows a corporation business tax credit for 20 percent of the costs of certain manufacturing equipment installed at a manufacturing facility in this State and 20 percent of the costs of improvements or additions that result in the renovation, modernization, or expansion of a manufacturing facility in this State. The bill provides that expenditures for certain manufacturing equipment, facility renovation, modernization, and expansion for which a credit is allowed under this bill are not to be considered expenditures for which a credit is allowed under the New Jobs Investment Tax Credit, the Manufacturing and Employment Investment Tax Credit, the Research and Development Credit, or the Effluent Treatment and Conveyance Equipment Credit. The bill defines "manufacturing equipment" as machinery, apparatus or equipment, including, but not limited to, any machinery, apparatus, or equipment employing an advanced technological process, used in the production of tangible personal property that is eligible for the sales tax exemption for manufacturing equipment. The bill defines a "manufacturing facility" as a business location, including, but not limited to, a factory, mill, or plant, at which more than 50 percent of the business personal property that is housed in the facility is manufacturing equipment.
AI Summary
This bill establishes a corporation business tax credit for businesses in New Jersey, allowing them to claim a credit equal to 20 percent of the costs associated with purchasing new manufacturing equipment or making improvements that renovate, modernize, or expand a manufacturing facility within the state. "Manufacturing equipment" is defined as machinery or apparatus used to produce goods that are eligible for a sales tax exemption, and a "manufacturing facility" is a business location where over half of the property housed is this type of manufacturing equipment. Importantly, any expenses for which this new credit is claimed cannot also be used to claim credits under other existing tax incentive programs, such as those for new jobs, manufacturing and employment investment, research and development, or effluent treatment. Unused credits can be carried forward for up to seven years, and the total credit claimed in a given tax period, combined with other credits, cannot exceed 50 percent of the tax liability or reduce it below a statutory minimum.
Committee Categories
Business and Industry
Sponsors (3)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/13/2026)
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/2026/S860 |
| BillText | https://pub.njleg.gov/Bills/2026/S1000/860_I1.HTM |
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