"Made in New Jersey Tax Credit Act"; provides CBT tax credits to taxpayers that purchase "New Jersey made" products.

S3558

SENATE, No. 3558

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

SYNOPSIS

���� �Made in New Jersey Tax Credit Act�; provides CBT tax
credits to taxpayers that purchase �New Jersey made� products.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
providing tax credits under the corporation business
tax to taxpayers that purchase New Jersey made products, 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.��� This act shall be known
and may be cited as the �Made in New Jersey Tax Credit Act.�

���� 2.��� 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 25 percent multiplied by the ratio
between (1) the costs incurred in the purchase of New Jersey made products for
the purposes of retail sales, manufacturing, or a manufacturing production
process and (2) the taxpayer�s costs incurred in the purchase of any products
for the purposes of retails sales, manufacturing, or a manufacturing production
process.� Total costs incurred shall exclude any costs for products that the
taxpayer demonstrates could not have been substituted with a similar made in
New Jersey product.�

���� A taxpayer shall not be
eligible for this credit if two thirds or more of total costs incurred are
excluded because the taxpayer demonstrates that they could not have been
substituted with a similar made in New Jersey product.

���� 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.�

���� The order of priority of the
application of the credit allowed pursuant to this section and any other
credits allowed by law shall be 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 by law, shall not exceed the amount 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 (54:10A-5).�

���� b.��� As used in this section:

���� �Director� means the Director
of the Division of Taxation.

���� �New Jersey made product�
means a product for which all or virtually all significant parts, processing,
and labor that produce the product originate or are sourced from New Jersey.�
New Jersey made products shall not include any product that contains anything
more than negligible out of state content.�

���� 3.��� Notwithstanding any
provision of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.) to the contrary, the Director of the Division of Taxation in the
Department of the Treasury is authorized to adopt immediately upon filing with
the Office of Administrative Law such rules and regulations necessary to
implement this act, including, but not limited to, rules and regulations
specifying annual application, documentation, verification, and award
requirements related to the purchase of New Jersey made products. ��The rules
and regulations adopted pursuant to this section shall be effective for a
period not to exceed 360 days following the date of filing and may thereafter
be amended, adopted, or readopted by the director in accordance with the
requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).

���� 4.��� This act shall take
effect immediately and apply to privilege periods beginning on or after the January
1 next following the date of enactment.�

STATEMENT

���� This bill, designated the
�Made in New Jersey Tax Credit Act,� provides tax credits under the corporation
business tax to taxpayers who produce purchase New Jersey made products for the
purposes of retail sales, manufacturing, or a manufacturing production
process.� The tax credit is equal to 25 percent multiplied by the ratio between
the costs incurred in the purchase of the New Jersey made products and the
taxpayer�s total costs incurred in the purchase of products for the purposes of
retail sales or manufacturing.� The total costs exclude any costs for products
that the taxpayer can demonstrate could not have been substituted with a
similar made in New Jersey product.� However, if two-thirds or more of a
taxpayer�s total costs incurred are excluded, then the taxpayer is ineligible
for the credit.� When this credit is combined with other credits, it cannot
exceed the tax liability otherwise due and cannot reduce the tax liability
below the statutory minimum.� The credit can be carried forward up to seven privilege
periods after the privilege period for which the credit is allowed.�

���� �New Jersey made� means that
all or virtually all the significant parts, processing, and labor that produce
that product originate or are sourced in the State of New Jersey, and that the
products do not contain or contain only negligible out of state content.