New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S1095

Introduced
1/31/22  

Caption

Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.

Impact

The bill seeks to stimulate job growth and economic development in the manufacturing sector by promoting investment in regions that are designed for growth. By structuring the credits around investments made specifically in Smart Growth Areas, S1095 aligns with state policies aimed at urban development and revitalization. This approach is intended to enhance regional economic performance and attract businesses to areas that support sustainable growth, thereby supporting state-wide economic resilience.

Summary

S1095 is a legislative proposal that aims to provide corporation business tax credits for investments made in manufacturing equipment and facilities located within designated Smart Growth Areas in New Jersey. The bill allows taxpayers to claim a credit of 10% for the costs associated with new manufacturing equipment installation or improvements made to existing manufacturing facilities. Additionally, it incentivizes the hiring and training of new employees by offering a similar credit based on their associated costs in salaries, training, and benefits, provided certain requirements are met.

Contention

While proponents of S1095 argue that it will boost the economy and job creation in the manufacturing sector by encouraging investment and training, there are concerns about fiscal implications and whether the incentives will effectively translate to long-term employment benefits. Critics may question the sustainability of these incentives and whether they might favor larger companies over smaller businesses in the manufacturing sector, potentially creating an uneven competitive landscape.

Full_text_statement

The bill also requires the Director of the Division of Taxation to prepare a report detailing the effectiveness of the tax credits and any increased administrative workload anticipated as a result of the bill's implementation. This accountability measure is critical for assessing the efficacy and impact of the incentives provided under S1095 on the state's economic landscape.

Companion Bills

NJ A636

Same As Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.

Previously Filed As

NJ S3377

Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.

NJ A636

Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.

NJ A3104

Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.

NJ S594

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ S1335

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ A237

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ A961

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ A5687

Establishes Next New Jersey Manufacturing Program to incentivize in-State manufacturing investments and job creation.

NJ S4407

Establishes Next New Jersey Manufacturing Program to incentivize in-State manufacturing investments and job creation.

NJ S2669

Establishes manufacturing machine and metal trade apprenticeship tax credit program.

Similar Bills

LA HB385

Provides for the removal of abandoned manufactured housing units

NJ S594

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ A237

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ S1335

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ A961

Provides a corporation business tax credit for investment in certain manufacturing equipment, facility renovation, modernization, and expansion.

NJ S3377

Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.

NJ A636

Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.

NJ A3104

Provides corporation business tax credit for certain investment in manufacturing equipment and manufacturing facility renovation, modernization, and expansion, or hiring and training of new employees for manufacturing purposes.