Bill > S351

Introduced Session

This bill provides for a gross income tax credit for A-list performing artists for income derived from certain live performances contracted for and rendered within the Atlantic City Tourism District and additional locations within the State. This tax credit, which will effectively establish a 100% State income tax exemption for top-ranked national performers who commit to perform periodically in Atlantic City, and for their performances that may occur elsewhere in New Jersey, is intended to generate a net revenue benefit that can be accomplished through the growth in additional tourists visiting and staying in Atlantic City to be entertained by major entertainers and sporting events that become Atlantic City regulars. The economic success of Atlantic City as a gambling and top national entertainment hotspot comparable to Las Vegas, requires a major stimulus for drawing regular, recurring top-ranked entertainers and spectator events to the Atlantic City Tourism District and other locations in this State. Top nationally-ranked live performing artists, as will be identified by way of a national review to be annually compiled by the New Jersey Secretary of State, in categories of entertainment and sports performance occupations including but not limited to musicians, singers, dancers, actors, comics, athletic and sports competitors participating in professional, organized, officiated sporting events to entertain spectators, will be eligible to apply for the tax credit if they commit to and actually perform live on at least four occasions within any taxable year within the Atlantic City Tourism District. Tax credits may then also be claimed for live performances in other New Jersey venues within that taxable year. Income from live performances for which a tax credit may be claimed must be pursuant to live performance contracts entered into during the next five calendar years beginning after the date of enactment of this bill. This tax credit must be applied for and allowed pursuant to a written application with the Director of the Division of Taxation under an expedited process. The credit may be applied only against the gross income tax liability on income derived from these services performed in the district and other State locations during a taxable year, and the credit is to be calculated as if the income is subject to tax at the highest marginal tax rate as applies to the taxpayer pursuant to the New Jersey gross income tax.

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Tom Kean (R)*,  Jim Whelan (D)*, 

Referred to Senate Budget and Appropriations Committee (on 04/18/2016)