New Jersey Senate Bill S2658

New Jersey 2024-2025 Regular Session

• Introduced: 2/12/24
• Refer: 2/12/24

Caption

"New Jersey Makes, the World Takes Act"; allows corporation business tax credit for selling New Jersey made products.

Impact

The introduction of S2658 is expected to have meaningful implications for state law by enhancing the current business tax framework. By providing a tax credit specifically for New Jersey made products, the bill encourages businesses to prioritize local sourcing and manufacturing, which could help create jobs and bolster the local economy. This initiative not only makes it financially beneficial for businesses to sell locally produced goods but also aligns with broader state objectives of fostering a strong local manufacturing sector.

Summary

Senate Bill S2658, known as the 'New Jersey Makes, the World Takes Act', aims to support the sale of locally made products by allowing taxpayers to claim a corporation business tax credit. Specifically, the bill grants a credit of $3.31 for every $100 of retail sales made from products that are designated as 'New Jersey made'. This incentive is designed to increase the competitiveness of local businesses and encourage consumer preference for products produced within the state. By supporting local manufacturing, the bill seeks to stimulate economic growth in New Jersey through the promotion of in-state products.

Contention

Notably, S2658 may invite scrutiny regarding its definition of 'New Jersey made products,' as products eligible for the tax credit must possess significant local content. This could raise questions about the criteria used to determine which items qualify, potentially leading to disputes over compliance and eligibility. Detractors may argue that defining local products too narrowly could limit consumer choice and create barriers for businesses that assemble or incorporate materials from outside the state. Overall, the implementation of this bill will require careful consideration of its administrative aspects and its real impact on the state’s economic landscape.