New Jersey Assembly Bill A2710

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

"Made in New Jersey Tax Credit Act"; provides CBT tax credits to taxpayers that purchase "New Jersey made" products.

Impact

The enactment of A2710 could significantly alter state corporate tax regulations by establishing clear financial benefits for purchasing locally sourced goods. According to the bill, taxpayers could carry forward any unused credits for up to seven privilege periods, potentially leading to a more sustained economic impact over time. The measure seeks to address economic challenges faced by local manufacturers and encourages them to scale operations and employment by providing a competitive edge through tax relief, enabling sustainable growth and stability.

Summary

Assembly Bill A2710, known as the 'Made in New Jersey Tax Credit Act,' proposes tax incentives designed to encourage the purchase of locally made products within New Jersey. Specifically, the bill allows taxpayers to receive a tax credit equal to 25% of their costs for purchasing New Jersey-made products for retail sales and manufacturing processes. To qualify, the products must consist of 'all or virtually all' materials and labor sourced from New Jersey, excluding items with significant out-of-state content. This initiative aims to support local businesses, bolster the state's manufacturing sector and stimulate economic growth within the community.

Contention

While the bill is largely supported for its potential benefits to local businesses and the economy, there's been some debate regarding the definition of 'New Jersey made' products. Critics worry about the feasibility of enforcing restrictions on out-of-state content and how this may limit broader procurement options for businesses. Additionally, stakeholders wonder if the bill could inadvertently lead to market distortions and if the incentives are robust enough to produce the desired economic outcomes. As discussions continue, various amendments and clarifications are expected to ensure the legislation supports its intended purposes.