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A4068
ASSEMBLY, No. 4068
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 12, 2026
Sponsored by:
Assemblyman� ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Co-Sponsored by:
Assemblywoman Fantasia
SYNOPSIS
���� Provides CBT and GIT credits for completion of
qualified construction projects at abandoned commercial building sites.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
providing corporation business tax and gross
income tax credits for the completion of qualified construction projects at
abandoned commercial building sites, and supplementing P.L.1945, c.162
(C.54:10A-1 et seq.) and chapter 4 of Title 54A of the New Jersey Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a. (1) For privilege
periods beginning on or after January 1 next following the effective date of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill), and
subject to the limitations of subsection e. of this section, 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), as calculated pursuant to paragraph (2) of this subsection,
for the qualified construction costs incurred by the taxpayer during the
privilege period for the completion of a qualified construction project at the
site of an abandoned commercial building in the State.
���� (2) The amount of the credit
authorized pursuant to this section shall not exceed the lesser of: (a) 25
percent of the total qualified construction costs incurred by the taxpayer
during the privilege period; or (b) $1,000,000.
���� b.� To qualify for the tax
credit allowed pursuant to this section, a taxpayer shall apply to the division
for a certification that provides: (1) that the qualified construction project
meets the requirements of this section; and (2) the amount of the tax credit
calculated pursuant to subsection a. of this section.
���� c.� The application shall
demonstrate that the taxpayer completed the qualified construction project
before applying for the tax credit provided in this section.� The application
shall include a receipt demonstrating the qualified construction costs incurred
by the taxpayer and any other information determined relevant by the division.�
Upon certification, the division shall submit a copy of the certification to
the taxpayer.
���� d.� The director shall
prescribe the order of priority of the application of the tax credit allowed
pursuant to this section, and any other credits allowed against the tax imposed
pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the privilege period.�
The amount of the credit applied pursuant to this section against the tax
imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) shall not reduce
a taxpayer's 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).� The
amount of the tax credit otherwise allowable under this section which cannot be
applied for the privilege period due to the limitations of this subsection or
under other provisions of P.L.1945, c.162 (C.54:10A-1 et seq.) may be carried
forward, if necessary, to the seven privilege periods following the privilege
period for which the tax credit was allowed.
���� e.� The value of tax credits
provided by the director pursuant to this section and pursuant to section 2 of
P.L. ,
c. (C. )
(pending before the Legislature as this bill) shall not exceed a cumulative
total of $5 million
���� f.� The division shall adopt,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), rules and regulations as are necessary to implement the
provisions of this section.
���� g.� No later than one year
after the expiration date of the tax credits provided pursuant to this section,
the division shall prepare and submit to the Governor, the State Treasurer,
and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature,
a report that, at a minimum, summarizes the effectiveness of the tax credit in
incentivizing the replacement of abandoned commercial buildings with newly
constructed commercial buildings.
���� h.� As used in this section:
���� �Commercial building� means a
building of at least 100,000 square feet that is used for commercial purposes.
���� �Director� means Director of
the Division of Taxation in the Department of the Treasury.
���� �Division� means the Division
of Taxation in the Department of the Treasury.
���� �Qualified construction costs�
means costs incurred in connection with the completion of a qualified
construction project.
���� �Qualified construction
project� means any of the following: the demolition of an abandoned commercial
building; the construction of a new commercial building at the demolition site
of an abandoned commercial building; the removal of debris from the demolition
site of an abandoned commercial building; the remediation of a demolition site;
or the repurposing of an abandoned commercial building.
���� �Remediation� means the
investigation, analysis, planning, monitoring, acquisition, removal,
containment, remediation, construction, or improvement of any real property or
building necessary or desirable for the cleanup of actual, potential, or
perceived environmental contamination or pollution, including without
limitation, water pollution, air pollution, pollution caused by solid waste
disposal, thermal pollution, radiation contamination, or other general
environmental contamination or pollution which is or may become injurious to
the environment or to the public health, safety, or welfare.
���� 2.� a. (1) For taxable years
beginning on or after January 1 next following the effective date of P.L.���� ,
c.���� (C.�������� ) (pending before the Legislature as this bill), and subject
to the limitations of subsection e. of this section, a taxpayer shall be
allowed a credit against the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1
et seq., as calculated pursuant to paragraph (2) of this subsection, for any
qualified construction costs incurred by the taxpayer during the taxable year
for the completion of a qualified construction project at the site of an
abandoned commercial building in the State.
���� (2) The amount of the credit
authorized pursuant to this section shall not exceed the lesser of:� (a) 25
percent of the total qualified construction costs incurred by the taxpayer
during the taxable year; or (b) $1,000,000.
���� b.� To qualify for the tax
credit allowed pursuant to this section, a taxpayer shall apply to the division
for a certification that provides: (1) that the qualified construction project
meets the requirements of this section; and (2) the amount of the tax credit
calculated pursuant to subsection a. of this section.
���� c.� The application shall
demonstrate that the taxpayer completed the qualified construction project
before applying for the tax credit provided in this section.� The application
shall include a receipt demonstrating the qualified construction costs incurred
by the taxpayer and any other information determined relevant by the division.�
Upon certification, the division shall submit a copy of the certification to
the taxpayer.
���� d.� The order of priority of
the application of the credit allowed pursuant to this section, and any other
credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq. for a
taxable year, shall be as prescribed by the director.� The amount of the credit
applied under this section against the New Jersey gross income tax imposed
pursuant to N.J.S.54A:1-1 et seq. for a taxable year, when taken together with
any other payments, credits, deductions, and adjustments allowed by law, shall
not reduce a taxpayer's tax liability to an amount less than zero.� The amount
of the tax credit otherwise allowable under this section which cannot be
applied for the taxable year due to the limitations of this section or other
provisions of N.J.S.54A:1-1 et seq. may be carried forward, if necessary, to
the seven taxable years following the taxable year for which the tax credit was
allowed.
���� e.� The value of tax credits
provided by the director pursuant to this section and pursuant to section 1 of
P.L. ,
c. (C. )
(pending before the Legislature as this bill) shall not exceed a cumulative
total of $5 million.
���� f.� The division shall adopt,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), rules and regulations as are necessary to implement the
provisions of this section.
���� g.� No later than one year
after the expiration date of the tax credits provided pursuant to this section,
the division shall prepare and submit to the Governor, the State Treasurer,
and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature,
a report that, at a minimum, summarizes the effectiveness of the tax credit in
incentivizing the replacement of abandoned commercial buildings with newly
constructed commercial buildings.
���� h.� As used in this section:
���� �Commercial building� means a
building of at least 100,000 square feet that is used for commercial purposes.
���� �Director� means Director of
the Division of Taxation in the Department of the Treasury.
���� �Division� means the Division
of Taxation in the Department of the Treasury.
���� �Qualified construction costs�
means costs incurred in connection with the completion of a qualified
construction project.
���� �Qualified construction
project� means any of the following: the demolition of an abandoned commercial
building; the construction of a new commercial building at the demolition site
of an abandoned commercial building; the removal of debris from the demolition
site of an abandoned commercial building; the remediation of a demolition site;
or the repurposing of an abandoned commercial building.
���� �Remediation� means the
investigation, analysis, planning, monitoring, acquisition, removal,
containment, remediation, construction, or improvement of any real property or
building necessary or desirable for the cleanup of actual, potential, or
perceived environmental contamination or pollution, including without
limitation, water pollution, air pollution, pollution caused by solid waste
disposal, thermal pollution, radiation contamination, or other general
environmental contamination or pollution which is or may become injurious to
the environment or to the public health, safety, or welfare.
���� 3.� This act shall take effect
immediately.
STATEMENT
���� The bill provides corporation
business tax and gross income tax credits for any qualified construction costs
incurred by a taxpayer for the completion of a qualified construction project
at the site of an abandoned commercial building in the State.� The bill defines
�commercial building� as a building of at least 100,000 square feet that is
used for commercial purposes.� Under the bill, a �qualified construction
project� includes any of the following: the demolition of an abandoned
commercial building; the construction of a new commercial building at the
demolition site of an abandoned commercial building; the removal of debris from
the demolition site of an abandoned commercial building; the remediation of a
demolition site; or the repurposing of an abandoned commercial building.
���� The amount of the tax credit
is capped at the lesser of the following: (1) 25 percent of the qualified
construction costs incurred by the taxpayer during the privilege period or
taxable year; or (2) $1,000,000.
���� To qualify for the tax credit
allowed under the bill, a taxpayer would be required to apply to the Division
of Taxation in the Department of the Treasury for a certification that
provides:� (1) that the qualified construction project meets the requirements
of the bill; and (2) the amount of the tax credit calculated pursuant to the
bill.
���� The bill requires the division
to adopt rules and regulations as are necessary to implement the bill�s
provisions.� The bill would also limit the cumulative total of tax credits
awarded pursuant to the bill to $5 million.
���� Finally, the bill would
require, no later than one year after the expiration of the tax credits
provided pursuant to the bill, the division to prepare and submit to the
Governor, the State Treasurer, and the Legislature a report that, at a minimum,
summarizes the effectiveness of the tax credit in incentivizing the replacement
of abandoned commercial buildings with newly constructed commercial buildings.
���� Construction of commercial
buildings throughout the State has increased exponentially during recent
years.� Many commercial buildings have been constructed on the State�s
farmland, which has adversely impacted the State�s farming sector.�
Construction of commercial buildings on farmland decreases the amount of land
in the State that is able to be used for farming purposes and, in many cases,
destroys prime soil, which is limited to areas where the soil naturally occurs
and, once destroyed, cannot be recreated.� Farmland is an important economic
and environmental resource for New Jersey and, for this reason, it is important
take steps to ensure farmland is used for farming purposes and not converted
into commercial buildings.
���� Lands currently used for
commercial purposes should continue to be used for commercial purposes.� For
this reason, abandoned commercial buildings should be replaced with newly
constructed commercial buildings at the same location.� This bill would encourage
the development of commercial buildings throughout the State while also
protecting the State�s farmland.