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

A234

ASSEMBLY, No. 234

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman JOHN V. AZZARITI JR., M.D.

District 39 (Bergen)

Co-Sponsored by:

Assemblyman Inganamort and Assemblywoman Fantasia

SYNOPSIS

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

CURRENT VERSION OF TEXT

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

��

An Act

providing a corporation business tax credit for
investment in certain manufacturing equipment, facility renovation,
modernization, and expansion, 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.� A taxpayer shall be
allowed a credit against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5), in an amount equal to 20 percent of the amount paid during
the privilege period for:

���� (1)�� manufacturing equipment
installed at a manufacturing facility in this State; and

���� (2)�� the acquisition,
construction, reconstruction, installation, or erection of improvements or
additions that result in the renovation, modernization, or expansion of a
manufacturing facility in this State.

���� An unused credit may be
carried forward, if necessary, for use in

the seven privilege periods
following the privilege period for which the credit is allowed.

���� b.��� A credit shall not be
allowed under P.L.1993, c.170 (C.54:10A-5.4 et seq.), P.L.1993, c.171 (C.54:10A-5.16
et al.), P.L.1993, c.175 (C.54:10A-5.24), or P.L.2001, c.321

(C.54:10A-5.31 et seq.) for expenditures for which a credit is allowed pursuant
to this section.

���� c.���� The order of priority
of the application of the credit allowed under this section and any other
credits allowed by law shall be as prescribed by the director.� The amount of
the credit applied under this section against the tax imposed pursuant to
section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with
any other credits allowed against the tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10A-5), shall not exceed 50 percent of the tax liability
otherwise due and shall not reduce the tax liability to an amount less than the
statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162
(C.54:10A-5).

���� d.��� As used in this section:

���� "Manufacturing
equipment" means machinery, apparatus, or equipment, including, but not
limited to, any machinery, apparatus, or equipment employing an advanced
technological process, used in the production of tangible personal property
that is eligible for the sales tax exemption pursuant to subsection a. of
section 25 of P.L.1980, c.105 (C.54:32B-8.13); and

���� "Manufacturing
facility" means a business location, including, but not limited to, a
factory, mill, or plant, at which more than 50 percent of the business personal
property that is housed in the facility is manufacturing equipment.

���� 2.��� This act shall take
effect immediately and apply to amounts paid in privilege periods beginning
after the date of enactment.

STATEMENT

���� This bill allows a corporation
business tax credit for 20 percent of the costs of certain manufacturing
equipment installed at a manufacturing facility in this State and 20 percent of
the costs of improvements or additions that result in the renovation, modernization,
or expansion of a manufacturing facility in this State.

���� The bill provides that expenditures
for certain manufacturing equipment, facility renovation, modernization, and
expansion for which a credit is allowed under this bill are not to be
considered expenditures for which a credit is allowed under the New Jobs
Investment Tax Credit, the Manufacturing and Employment Investment Tax Credit,
the Research and Development Credit, or the Effluent Treatment and Conveyance
Equipment Credit.

���� The bill defines
"manufacturing equipment" as machinery, apparatus or equipment,
including, but not limited to, any machinery, apparatus, or equipment employing
an advanced technological process, used in the production of tangible personal
property that is eligible for the sales tax exemption for manufacturing
equipment.� The bill defines a "manufacturing facility" as a business
location, including, but not limited to, a factory, mill, or plant, at which
more than 50 percent of the business personal property that is housed in the
facility is manufacturing equipment.