Bill Extending Eligibility Of Business, Housing Project Tax Credits Advances

NJTODAY.NET's online business directory

TRENTON – Legislation that would extend the eligibility of certain business and housing project tax credits available to New Jersey businesses was released Tuesday from the Assembly Budget Committee.

The legislation (A-3143) would extend the eligibility of businesses to invest in certain business or housing projects for tax credits under the state’s “Urban Transit Hub Tax Credit Act” (UTHTCA) and the “New Jersey Economic Stimulus Act of 2009.”

[smartads]

Under the UTHTCA, a business may receive a tax credit of up to 100 percent of its qualified capital investment in a business facility that is located in an urban transit hub and employs at least 250 people at the facility.  Annually, for 10 years, the business may apply a credit equal to 10 percent of the amount of the investment against the corporation business tax, insurance premiums tax or gross income tax liability.

A tenant leasing space in a qualified facility would also be allowed credits under the bill, provided the tenant occupies space in the facility that proportionally represents at least $17.5 million of the capital investment in the facility, while employing at least 250 individuals and that the owner of the facility has made or acquired at least $50 million in capital investments in the facility.

Under a similar program enacted as part of the Stimulus Act of 2009, a developer may receive a tax credit of up to 20 percent of the capital investment in a qualified residential project located in an urban transit hub, provided the owner of the project has made or acquired at least $50 million in capital investments in the project.

Mixed use projects that consist of a qualified business facility and a qualified residential project – neither of which alone satisfies the $50 million investment requirement – also would be eligible, provided that the investment in each component of the development amounts to at least $17.5 million and that the total amount invested in the project in aggregate is at least $50 million.

The bill now heads to the Assembly Speaker, who decides if and when to post it for a floor vote.


Connect with NJTODAY.NET


Join NJTODAY.NET's free Email List to receive occasional updates delivered right to your email address!
Email ads@njtoday.net for advertising information Send stuff to NJTODAY.NET Like Us On Facebook Follow Us On Twitter Download this week's issue of NJTODAY.NET

Leave a Reply