Bill > S1082

Introduced Session

This bill would provide credits against the New Jersey gross income tax and corporation business tax, as applicable, to vineyards and wineries for qualified capital expenses, as defined in the bill, in an amount equal to 25 percent of the qualified capital expenses made in connection with the establishment of a new vineyard or winery or the capital improvements made to an existing vineyard or winery during each privilege period in which the qualified vineyard or winery is operated for a profit by the taxpayer. Under the bill a "qualified capital expense" is defined as any expenditure made by the taxpayer for the purchase and installation of equipment or agricultural materials for use in the production of agricultural products at a vineyard or winery. The bill, as includes a list of items that qualify as vineyard or winery equipment or agricultural materials. The amount of the credit allowed would be taken by the taxpayer to reduce the tax otherwise due and required to be paid for the privilege period to which the credit applies. The bill would authorize a credit to only be taken by the taxpayer to reduce the tax otherwise due and required to be paid for the privilege period in which the vineyard or winery is conducted or operated for a profit by the taxpayer. The bill would provide that the total value of the grants of tax credits approved by the Director of Taxation that may be applied against a gross income and corporation tax liability for a privilege period shall not exceed an aggregate annual limit of $3,000,000. Each gross income taxpayer or individual vineyard or winery paying corporation business tax would be allowed a total of $250,000 in tax credits to be taken over a 10 year period, and no more than $50,000 per tax year or privilege period, as applicable. If the amount of tax credits applied for by taxpayers exceeds the aggregate annual limit of $3,000,000, then a taxpayer who has first applied for and has not been allowed a tax credit amount for that reason would then be allowed, in the order in which they have submitted an application, their approved amount of tax credit on the first day of the next succeeding privilege period in which tax credits are issued and are not in excess of the amount of credits available. Under the bill, a taxpayer would not be permitted to take any credits to reduce or offset the New Jersey gross income tax liability or corporation tax liability that is incurred and required to be paid by the taxpayer in connection with the conduct or operation of a vineyard or winery unless the taxpayer has obtained prior written authorization from the director. The director would establish an application process and prescribe the form and manner through which a taxpayer could make and file an application to obtain the director's written authorization for the allowance of a credit. The bill would expire with privilege periods or taxable years, as applicable, first commencing after July 1, 2027.

AI Summary

Committee Categories

Nilsa Cruz-Perez (D)*,  Troy Singleton (D)*,  Dawn Addiego (D),  Jim Beach (D),  Chris Brown (R),  Vin Gopal (D),  Shirley Turner (D), 

Received in the Assembly, Referred to Assembly Agriculture and Natural Resources Committee (on 04/05/2018)