Bill > A816

This bill provides a corporation business tax credit for businesses that invest in manufacturing within designated "Smart Growth Areas" in New Jersey, which are areas identified for development and growth. Specifically, companies can receive a credit equal to 10% of their investment in new manufacturing equipment, or for costs associated with renovating, modernizing, or expanding their manufacturing facilities. Additionally, businesses can claim a credit for hiring and training new full-time employees for manufacturing roles, with the credit being the greater of 10% of the employee's training, salary, and benefits or the deduction they would otherwise be entitled to under existing law; this training must be qualified manufacturing-related job training, and the employee must be retained for at least 365 days. The credit is available for investments made between January 1, 2014, and January 1, 2016, and any unused credit can be carried forward for up to seven years. This bill also clarifies that businesses cannot claim this new credit for expenditures that have already received credits under other existing laws, and the application of this credit, along with other tax credits, is subject to certain limitations, including not exceeding 50% of the tax liability for a given period. The bill defines "manufacturing equipment" as machinery used to produce tangible personal property eligible for sales tax exemption, "manufacturing facility" as a location where over 50% of business property is manufacturing equipment, and "qualified manufacturing related job training" as specific occupational skills or on-the-job training provided by accredited institutions or the employer within New Jersey. Finally, the Director of the Division of Taxation is required to report on the effectiveness and administration of these credits by January 1, 2017.