New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A1345

Introduced
1/9/24  

Caption

Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

Impact

The adoption of A1345 is expected to have a positive effect on state laws regarding business taxation, primarily by providing enhanced financial relief for companies engaging in research and development. By making the research tax credits refundable, taxpayers may receive direct financial benefits from their expenditures on qualified research. This change is anticipated to attract more businesses to the state, particularly in high-tech and innovative fields, as it lowers the barriers for startups and corporations investing in research initiatives. The New Jersey Economic Development Authority will play a key role in identifying and adapting the list of targeted industries, thereby aligning tax incentives with state economic goals.

Summary

Assembly Bill A1345 proposes significant enhancements to the corporation business tax credits for research expenses in New Jersey. Specifically, the bill seeks to increase the qualified research expenses tax credit from 10% to 15% for taxpayers engaged in targeted industries, which are defined by the New Jersey Economic Development Authority. The bill also increases the basic research payments tax credit from 10% to 15% for all corporations, further incentivizing research and development activities within the state. Fostering innovation is a primary goal of this legislation, particularly in emerging sectors such as clean energy, life sciences, and advanced manufacturing.

Contention

While the bill is designed to promote economic growth and innovation, there are potential points of contention regarding the implementation and efficacy of the expanded credits. Critics may argue that the changes predominantly benefit larger corporations at the expense of smaller businesses and that a more comprehensive approach to economic support is necessary. Additionally, concerns regarding the effectiveness of tax credits in genuinely stimulating research activities, as opposed to benefiting established firms that might engage in such activities regardless of tax incentives, may also arise. The ongoing discourse surrounding corporate tax incentives in New Jersey will likely shape the legislative outcome and public perception of A1345.

Companion Bills

NJ S1035

Same As Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

NJ A2487

Carry Over Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

NJ S2707

Carry Over Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

Previously Filed As

NJ A2487

Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

NJ S1035

Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

NJ S2707

Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

NJ A1379

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ A3279

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ S1516

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ HB2043

Research and development expenses; increases tax credit.

NJ S1313

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ A4117

Provides corporation business tax credit to taxpayers that develop qualified native pollinator habitat on undeveloped property.

NJ S1588

Allows temporary corporation business tax and gross income tax credits for businesses that provide hiring bonuses to targeted employees.

Similar Bills

NJ S2707

Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

NJ S1035

Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

NJ A2487

Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

CA SB617

Workers’ compensation: providers.

CA AB1832

Waters subject to tidal influence: hard mineral extraction.

OR HB2087

Relating to forest products harvest taxation; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.

OR HB2072

Relating to forest products harvest taxation; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.

OR HB2816

Relating to forest products harvest taxation; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.