Read the full stored bill text
A4063
ASSEMBLY, No. 4063
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 12, 2026
Sponsored by:
Assemblyman� ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
���� Provides CBT credit for construction or retrofitting
of warehouses to meet certain green building standards.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
providing corporation business tax credits for the
construction or retrofitting of warehouses to meet certain green building
standards, 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.��� As used in P.L.��� ,
c.��� (C.���� ) (pending before the Legislature as this bill):
���� "Allowable costs"
means amounts properly chargeable to capital account other than for purchase of
land or any remediation costs, which are: paid or incurred for construction or
rehabilitation; commissioning costs; interest paid during the construction or
rehabilitation period; legal, architectural, engineering, and other
professional fees allocable to construction or rehabilitation; closing costs
for construction or mortgage loans; recording taxes and filing fees incurred
with respect to construction or rehabilitation; site costs, such as temporary
electrical wiring, scaffolding, demolition costs, and fencing and security
facilities; and costs of carpeting, partitions, walls and wall coverings,
ceilings, lighting, plumbing, electrical wiring, and ventilation; provided that
such costs shall not include the cost of telephone systems and computers other
than electrical wiring costs and shall not include the cost of fuel cells, including
installation.
���� "Green warehouse"
means a warehouse that is a high performance green building.
���� "High performance green
building" means a solar-ready building that is designed and constructed in
a manner that achieves at least: a silver rating according to the Leadership in
Energy and Environmental Design Green Building Rating System as adopted by the
United States Green Building Council; a two globe rating according to the Green
Globes Program as adopted by the Green Building Initiative; or a comparable
numeric rating according to a nationally recognized, accepted, and appropriate
numeric sustainable development rating system, guideline, or standard as the
Commissioner of Community Affairs, in consultation with the Commissioner of
Environmental Protection and the Board of Public Utilities, may designate by
regulation.
���� "Solar panel" means
an elevated panel or plate, or a canopy or array thereof, that captures and
converts solar radiation to produce power, and includes flat plate, focusing
solar collectors, or photovoltaic solar cells.
���� "Solar-ready building"
means a building that incorporates design elements, as specified by the
Department of Community Affairs, which allow for the installation of rooftop
solar panels and, if the structure or building is intended to use hot water, a
solar water heating system.
���� "Solar water heating
system" means a system which uses solar energy as the primary means of
heating water.
���� "Warehouse" �means a
building that stores cargo, goods, or products of any type on a short-term or
long-term basis for later distribution to wholesale or retail customers, and
includes, but is not limited to, a distribution center, flex-warehouse, or any
other type of warehouse..
���� 2.��� A taxpayer shall be
allowed a credit against the tax imposed under the �Corporation Business Tax
Act (1945),� P.L.1945, c.162 (C.54:10A-1 et seq.), in an amount equal to 25
percent of the allowable costs paid or incurred by the taxpayer during the
privilege period in connection with the construction of a green warehouse in
the State or the retrofitting of an existing warehouse in the State to qualify
as a green warehouse pursuant to P.L.��� , c.��� (C.������� ) (pending before
the Legislature as this bill).
���� 3.��� a. �For the first
privilege period for which a taxpayer intends to apply a credit allowed
pursuant to P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill), a taxpayer shall obtain an eligibility certificate from the
Department of Community Affairs. �The Department of Community Affairs shall
issue an eligibility certificate to a taxpayer if the taxpayer has provided:
���� (1)�� a certification from an
architect or professional engineer, licensed to practice in New Jersey, that the
warehouse with respect to which the credit is applied qualifies as a green
warehouse pursuant to P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill);
���� (2)�� a certificate of
occupancy for the warehouse or warehouses that are the subject of the credit;
���� (3)�� a statement that the
warehouse or warehouses shall remain in service during the privilege period;
and
���� (4)�� any other information
the Department of Community Affairs deems necessary to properly effectuate the
intent of
P.L. , c. (C. ) (pending
before the Legislature as this bill).
���� The eligibility certificate
shall include sufficient information to identify each warehouse, the amount of
the credit for which the taxpayer is eligible, and any other information that
the Department of Community Affairs may prescribe.� Upon certification, the Commissioner
of Community Affairs shall submit a copy of the eligibility certificate to the
taxpayer and the Director of the Division of Taxation in the Department of the Treasury.
���� The Department of Community
Affairs shall not issue an eligibility certificate pursuant to this section to
a taxpayer for any warehouse that received the required permit authorizing the construction
or retrofitting of the warehouse, as appropriate, prior to the effective date
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).
���� b.��� If the Department of Community
Affairs has reason to believe that an architect or professional engineer, in
making any certification under this section, engaged in professional
misconduct, the department shall so inform the New Jersey State Board of Architects,
or the State Board of Professional Engineers and Land Surveyors, as
appropriate, in the Division of Consumer Affairs of the Department of Law and
Public Safety.
���� 4.��� a. �When filing a return
that includes a claim for a credit pursuant to P.L.��� , c.��� (C.���� )
(pending before the Legislature as this bill), the taxpayer shall include a
copy of the eligibility certificate obtained pursuant to section 3 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill). �The Director
of the Division of Taxation in the Department of the Treasury shall allow a
credit for each taxpayer who is eligible pursuant to section 3 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill).
���� b.��� 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, when taken together with
any other credits allowed against the tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10-5), 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-1 et seq.). �The priority in which credits allowed pursuant to this
section and any other credits shall be taken shall be determined by the
Director of the Division of Taxation. �The amount of the credit otherwise
allowable under this section that cannot be applied for the privilege period due
to the limitations of this subsection or under other provisions of P.L.1945,
c.162 may be carried over, if necessary, to the seven privilege periods
following the privilege period for which the credit was allowed.
���� c.���� If a credit is owed to
a warehouse owner under
P.L. , c. (C. ) (pending
before the Legislature as this bill) with respect to property, and the
property, or an interest therein, is sold, the credit for the period after the
sale that would have been allowed under P.L.��� , c.���� (C.���� ) (pending
before the Legislature as this bill) to the prior owner had the property not
been sold shall be allowed to the successor owner if that right is specified in
the deed transferring the property and the Department of Community Affairs and
the Division of Taxation in the Department of the Treasury are notified of the
transaction and intended distribution of the credit. �If the credit is not
transferred pursuant to this subsection, then the remaining credit shall remain
with the prior building owner.
���� d.��� The amount of credit
granted under P.L.��� , c.��� (C.���� ) (pending before the Legislature as this
bill) to a New Jersey S corporation or an entity classified as a partnership
for federal tax purposes shall be passed through to the partners, members, shareholders,
or owners respectively, either in proportion to their ownership interest in the
equity or as the partners, members, shareholders, or owners mutually agree as
provided in an executed document detailing the alternate distribution method.�
The entity shall notify the Department of Community Affairs and the Division of
Taxation of the relevant ownership interests and the intended distribution
method in the taxpayer�s application for the tax credit.
���� e.���� Each taxpayer shall,
for any tax year for which a credit is claimed pursuant to P.L.��� , c.���
(C.���� ) (pending before the Legislature as this bill), maintain records of
such information as the Department of Community Affairs and the Division of Taxation
shall determine, and report that information to the Department of Community
Affairs and the Division of Taxation in the form and at the time that the two
agencies shall determine.
���� 5.��� The Department of
Community Affairs and the Division of Taxation in the Department of the
Treasury shall adopt, pursuant to the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and regulations as may be
necessary to implement the provisions of P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill).
���� 6.��� This act shall take
effect 180 days after enactment.
STATEMENT
���� This bill provides a
corporation business tax credit to taxpayers who construct a green warehouse or
retrofit a warehouse to qualify as a green warehouse pursuant to the
requirements of the bill.� The tax credit would be administered by the Department
of Community Affairs and the Division of Taxation in the Department of the
Treasury.�
���� The bill defines a �green
warehouse� as a warehouse that is a high performance green building.� The bill
defines �high performance green building� as a solar-ready building that is
designed and constructed in a manner that achieves at least: a silver rating
according to the Leadership in Energy and Environmental Design Green Building
Rating System as adopted by the United States Green Building Council; a two
globe rating according to the Green Globes Program as adopted by the Green
Building Initiative; or a comparable numeric rating according to a nationally
recognized, accepted, and appropriate numeric sustainable development rating
system, guideline, or standard as the Commissioner of Community Affairs, in
consultation with the Commissioner of Environmental Protection and the Board of
Public Utilities, may designate by regulation.�