Bill
Bill > S1217
NJ S1217
NJ S1217Establishes a manufacturing reinvestment account program to incentivize capital investment and workforce training in New Jersey with income tax rate reductions, deferrals, and accelerated deductions.
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 would establish the manufacturing reinvestment account program for the purpose of making it easier for New Jersey's small manufacturing businesses to invest in manufacturing machinery and equipment, and in workforce development. The bill would incentivize capital investment and workforce training in New Jersey through the use of tax reductions, deferrals, and deductions. The program would be available to manufacturing businesses that are current on their State tax obligations and which have 50 or fewer employees. The bill establishes three types of incentives for qualified businesses through the gross income tax and the corporation business tax: (1) a tax deduction for amounts deposited in a manufacturing reinvestment account for future use on qualified capital purchases and workforce training; (2) deferred taxation on account earnings; and (3) a rate reduction for the earnings on account deposits, upon distribution. Under the program, a small manufacturing business may deposit up to $100,000 in a manufacturing reinvestment account annually for up to five years. Earnings in an account are not taxed until withdrawn. For withdrawals made during an account's five-year life for spending on New Jersey based manufacturing equipment, machinery, or workforce development, the business would receive a one-half rate reduction on the withdrawn account earnings. Nonqualified withdrawals are included in whole in taxable income without the rate reduction on earnings.
AI Summary
This bill establishes a "manufacturing reinvestment account program" in New Jersey to encourage small manufacturing businesses, defined as those with 50 or fewer employees and current on their state taxes, to invest in their operations and workforce. Qualified manufacturers can deposit up to $100,000 annually for five years into a special interest-bearing account held at a New Jersey financial institution. These deposits are tax-deductible against both the corporation business tax and gross income tax. Earnings within the account are tax-deferred until withdrawn. If funds are withdrawn within the five-year period for qualified reinvestment expenditures, such as purchasing new machinery or equipment for a New Jersey manufacturing facility or investing in workforce training for New Jersey employees, the earnings are taxed at half the normal rate. Any remaining funds or non-qualified withdrawals after five years will be taxed as regular income.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S1217 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1217_I1.HTM |
Loading...