Imposes 30 percent electric public utility windfall surtax on certain taxpayers with allocated taxable net income in excess of 20 percent above five-year average income under CBT.

A1335

ASSEMBLY, No. 1335

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Assemblyman DAN HUTCHISON

District 4 (Atlantic, Camden and Gloucester)

SYNOPSIS

���� Imposes 30 percent electric public utility windfall
surtax on certain taxpayers with allocated taxable net income in excess of 20
percent above five-year average income under CBT.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
establishing an electric public utility windfall surtax
and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� For the purposes of
this section:

���� �Allocated taxable net income�
means taxable net income as defined in subsection (w) of section 4 of P.L.1945,
c.162 (C.54:10A-4).

���� �Electric public utility�
means a public utility, as that term is defined in R.S.48:2-13, that transmits
and distributes electricity to end users within this State.

���� �Taxpayer� means an electric
public utility that is subject to tax as provided in the �Corporation Business
Tax Act (1945),� P.L.1945, c.162 (C.54:10A-1 et seq.).

���� �Windfall income� means the
amount of allocated taxable net income in excess of a taxpayer that is 20
percent greater than the average allocated taxable net income of the taxpayer
during the five privilege periods immediately preceding the privilege period in
which the public utility windfall surtax is due and payable.

���� b.��� In addition to the tax
paid by each taxpayer determined pursuant to section 5 of P.L.1945, c.162
(C.54:10A-5), each taxpayer that has windfall income for a privilege period
beginning on or after January 1 of the calendar year next following the
effective date of P.L. ,
c. (pending before the Legislature as this bill)
shall pay a surtax, to be known as the electric public utility windfall surtax,
equal to 30 percent of the windfall income of the taxpayer for the privilege
period.� The electric public utility windfall tax shall be due and payable in
accordance with section 15 of P.L.1945, c.162 (C.54:10A-15) and shall be
administered pursuant to the provisions of P.L.1945, c.162 (C.54:10A-1 et
seq.).� Notwithstanding the provisions of any other law to the contrary, no
credits shall be allowed against the electric public utility windfall surtax
computed under this section except for credits for installment payments,
estimated payments made with a request for an extension of time for filing a
return, or overpayments from prior privilege periods.

���� c.���� Notwithstanding any
other provision of law to the contrary, the gross amount of all revenues
received by the State from the electric public utility windfall surtax pursuant
to this section, except for amounts credited to the special account in the
General Fund created pursuant to Article VIII, Section II, paragraph 6 of the
New Jersey Constitution, shall be annually appropriated to the Board of Public
Utilities for distribution to the ratepayers of each electric public utility
subject to the electric public utility windfall surtax.� The Board of Public
Utilities shall prescribe the method by which the funds appropriated from the
surtax proceeds are distributed, provided that the proceeds shall be
distributed proportionally among all ratepayers of the electric public utility.

���� 2.��� This act shall take
effect immediately and shall apply to privilege periods beginning on or after
January 1 of the year next following the enactment of
P.L. ,
c. (C. )
(pending before the Legislature as this bill).

STATEMENT

���� This bill imposes a 30 percent
surtax, to be called the electric public utility windfall surtax, on the
windfall income of electric public utilities.

���� Under the bill, �windfall
income� means the amount of allocated taxable net income of an electric public
utility that is 20 percent greater than the average allocated taxable net
income of the utility during the five immediately preceding privilege periods.�
The bill defines �allocated taxable net income� to mean the same as the term
�taxable net income� is defined in the �Corporation Business Tax Act� for
purposes of calculating a taxpayer�s corporation business tax liability.

���� The electric public utility
windfall surtax is to be imposed in addition to the taxpayer�s regular
corporation business tax liability.� No credits are to be allowed against the
electric public utility windfall surtax, except for credits for installment payments,
estimated payments made with a request for an extension of time for filing a
return, or overpayments from prior privilege periods.

���� All revenues collected from
the electric public utility windfall surtax, except for amounts
constitutionally dedicated for open space, farmland, and historic preservation,
are to be annually appropriated to the Board of Public Utilities (board) for
distribution to the ratepayers of each electric public utility subject to the
electric public utility surtax.� The bill requires the board to prescribe the
method by which the funds appropriated from surtax proceeds are distributed,
except that these monies are required to be distributed proportionally among
all ratepayers of the electric public utility.