New Jersey Assembly Bill A5556

New Jersey 2024-2025 Regular Session

• Introduced: 4/10/25
• Refer: 4/10/25

Caption

"Road to Tax Relief Act"; provides credit for sales tax remittances for businesses impacted by public highway projects, including Interstate 80 project; provides tax credits for certain businesses and persons impacted by same projects; makes appropriation.

Impact

If enacted, A5556 would significantly amend the existing tax landscape for small businesses operating near highway construction zones. It allows retail establishments—defined as businesses with a maximum of 50 full-time employees—to claim tax credits equivalent to their losses in revenue due to reduced accessibility and customer traffic during construction. The articulation of 'impacted construction zones' is critical, as these zones are established to delineate areas where construction impedes business operations and revenue generation.

Summary

Assembly Bill A5556, known as the 'Road to Tax Relief Act', is designed to provide tax relief to businesses and individuals adversely impacted by public highway projects. It specifically targets retail businesses that operate within designated 'impacted construction zones' surrounding highway construction efforts, including significant repair work on Interstate 80. The bill offers refundable tax credits against sales tax remittances proportionate to the tax collected by these businesses during the ongoing construction period.

Contention

The bill has generated discussion regarding its fiscal implications and the adequacy of the defined relief measures. Some lawmakers express concern that the financial burdens on the state could be significant given the broad application of the tax credits. Additionally, there is debate over whether the criteria for defining an 'impacted construction zone' can effectively capture all businesses affected by highway work, particularly when considering indirect impacts that may not directly correlate with measurable revenue losses. Opposing views further question the sustainability of funding these tax credits without exacerbating budgetary constraints.