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S3674
SENATE, No. 3674
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 24, 2026
Sponsored by:
Senator� ANTHONY M. BUCCO
District 25 (Morris and Passaic)
Senator� PARKER SPACE
District 24 (Morris, Sussex and Warren)
SYNOPSIS
���� �Road to Tax Relief Act�; provides credit for sales
tax remittances for businesses impacted by public highway projects, including
Interstate 80 project; provides tax credits for certain businesses and persons
impacted by same projects; makes appropriation.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
providing tax relief for certain businesses and persons
impacted by certain public highway projects, designated as the Road to Tax
Relief Act, supplementing various parts of the statutory law, and making an
appropriation.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a. A seller that
operates a retail business establishment within an impacted construction zone
shall be entitled to claim a refundable credit against the remittance required
under section 18 of the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-18)
in the amount of taxes collected at the establishment, less the amount of tax
dedicated pursuant to subparagraph (b) of Article VIII, Section I, paragraph 7
of the New Jersey Constitution, during each month of the relief period,
provided that the seller is approved by the director pursuant to subsection b.
of this section.� The credit allowed pursuant to this section shall not exceed
the amount of taxes collected at the establishment during the month for which
the credit is claimed.
���� b.��� (1) Before or after the
commencement of a public highway project, a seller may apply to the director
for the credit authorized under this section.� The application shall be
submitted in a form and manner prescribed by the director.� The director shall
require the seller to submit such documentation as the director deems necessary
to verify that the seller operates a retail business establishment within an
impacted construction zone.�
���� (2)�� If the director deems
that the seller meets the conditions set forth in subsection a. of this
section, the director shall issue a written determination to the seller, which determination
shall indicate the retail business establishments at which the credit shall be
available and the relief period during which the credit shall apply.
���� c.���� Upon approval of the
director pursuant to subsection b. of this section, a seller may claim the
credit on the monthly or quarterly return filed to the Director of the Division
of Taxation in the Department of the Treasury pursuant to section 17 of P.L.1966,
c.30 (C.54:32B-17).� Until the conclusion of the relief period, the seller
shall be entitled to claim a refundable credit against the remittance of any
tax collections for which the credit is claimed, subject to the appropriation
of funds for this purpose.�
���� d.��� (1) Upon the
commencement or completion of a public highway project, the Commissioner of
Transportation shall provide written notice to the director attesting to the
commencement or completion of the project, as applicable.� Within 30 days
following the effective date of P.L. ,
c. (C. )
(pending before the Legislature as this bill), the commissioner shall provide
written notice to the director attesting to each ongoing public highway project
within the State.
���� (2)�� Within 30 days of
receiving the written notice from the commissioner concerning the completion of
a public highway project, the director shall provide written notice to each
seller for which a credit has been authorized under this section related to the
public highway project, which notice shall indicate that allowance to claim a
credit against the remittance required under section 18 of the �Sales and Use
Tax Act,� P.L.1966, c.30 (C.54:32B-18) is terminated, as of the date of receipt
of the written notice.
���� e.���� As used in this
section:
���� �Director� means the Director
of the Division of Taxation.
���� �Full-time employee� means a
person who is employed by the small business for at least 35 hours per week at
a wage no less than the State minimum wage.
���� �Impacted construction zone�
means any area immediately surrounding a public highway project within which
area the occurrence of the public highway project impedes or blocks the normal
and reasonable flow of traffic or otherwise restricts access to business
establishments located within the area.�
���� �Public highway project� means
any infrastructure project that involves the construction, improvement, or
maintenance of a State, county, or municipal highway, road, or street,
including, but not limited to, the repair or reconstruction of any highway, road,
or street that has suffered serious damage as a result of a natural disaster or
catastrophic failure from any external cause.
���� �Relief period� means the
period of time between the date on which a public highway project commences and
the date on which the project concludes.
���� �Retail business
establishment� means a small business that maintains a fixed permanent location
where goods are exhibited or services are offered on an appointment or walk-in
basis.
���� �Small business� means a
business with no more than 50 full-time employees, is independently owned and
operated, has its principal place of business in the State of New Jersey, and
is not delinquent or deficient with respect to the payment of any State tax.
���� 2.��� a. A taxpayer that
operates a retail business establishment within an impacted construction zone
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 the revenue loss experienced
by the retail business establishment during the privilege period as a result of
the public highway project, provided that the taxpayer obtains a certification
of the revenue loss for the privilege period from the director pursuant to
section 4 of P.L. , c. (C. )
(pending before the Legislature as this bill).
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section, and any other
credits allowed by law against the tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10A-5), 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 by law, shall not exceed 50 percent of the tax
liability otherwise due and shall not reduce the tax liability to an amount
lower 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
issued, after which the tax credit shall expire.
���� c.���� When filing a return
that includes a claim for a tax credit allowed pursuant to this section, a
taxpayer shall include a copy of the certification of revenue loss issued by
the director.
���� d.��� (1) A taxpayer that
obtains a certification of the revenue loss from the director pursuant to
section 4 of P.L. ,
c. (C. )
(pending before the Legislature as this bill) may apply to the director for a
tax credit transfer certificate in lieu of the taxpayer being allowed any
amount of tax credit against the tax liability of the taxpayer, as authorized
under this section. The tax credit transfer certificate, upon receipt thereof
by the taxpayer from the director, may be sold or assigned, in full or in part,
in the privilege period during which the taxpayer receives the tax credit
transfer certificate from the director, to another person, who may apply the
credit against a tax liability under the tax pursuant to the �Corporation
Business Tax Act (1945),� P.L.1945, c.162 (C.54:10A-1 et seq.), or the �New
Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq.� The certificate provided
to the taxpayer shall include a statement waiving the taxpayer�s right to claim
the amount of the credit that the taxpayer has elected to sell or assign
against the tax for a tax liability.� The tax credit certificate issued to a
taxpayer by the director shall be subject to any terms and conditions that the
director may prescribe; provided, however, that the holder of a tax credit
certificate may transfer all or part of the tax credit amount, on or after the
date of issuance of the tax credit transfer certificate, for use by the
transferee in the tax period for which it was issued, in the tax period in
which it was issued, or in a successive tax period.
���� (2)�� The tax credit
certificate holder or transferee may first use the credit against tax
liabilities in the tax period in which it was issued or a succeeding tax
period, as authorized in this section, without the need to amend the tax return
for the tax period for which the credit was issued, subject to the provisions
of this subsection. A transferee may carry forward an unused credit for use in
any of the next five successive tax periods, and the unused credit shall expire
thereafter.
���� e.���� As used in this
section:
���� �Full-time employee� means a
person who is employed by the small business for at least 35 hours per week at
a wage no less than the State minimum wage.
���� �Impacted construction zone�
means any area immediately surrounding a public highway project within which
area the occurrence of the public highway project impedes or blocks the normal
and reasonable flow of traffic or otherwise restricts access to business
establishments located within the area.�
���� �Public highway project� means
any infrastructure project that involves the construction, improvement, or
maintenance of a State, county, or municipal highway, road, or street,
including, but not limited to, the repair or reconstruction of any highway, road,
or street that has suffered serious damage as a result of a natural disaster or
catastrophic failure from any external cause.
���� �Retail business
establishment� means a small business that maintains a fixed permanent location
where goods are exhibited or services are offered on an appointment or walk-in
basis.
���� �Revenue loss� means the same
as the term is defined in section 4 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� �Small business� means a
business with no more than 50 full-time employees, is independently owned and
operated, has its principal place of business in the State of New Jersey, and
is not delinquent or deficient with respect to the payment of any State tax.
���� 3.��� a. A taxpayer that operates
a retail business establishment within an impacted construction zone shall be
allowed a credit against the tax otherwise due under the �New Jersey Gross
Income Tax Act,� N.J.S.54A:1-1 et seq., in an amount equal to the revenue loss
experienced by the retail business establishment during the taxable year as a
result of the public highway project, provided that the taxpayer obtains a
certification of the revenue loss for the taxable year from the director
pursuant to section 4 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section, and any other
credits allowed by law against the tax imposed pursuant to the �New Jersey
Gross Income Tax Act,� 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 tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable
year, together with other payments, credits, deductions, and adjustments
allowed by law, shall not reduce a taxpayer�s tax liability to an amount lower
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
subsection or under 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 issued, after which the tax credit shall expire.
���� c.���� When filing a return
that includes a claim for a tax credit allowed pursuant to this section, a
taxpayer shall include a copy of the certification of revenue loss issued by
the director.
���� d.��� (1) A business entity
that is classified as a partnership for federal income tax purposes shall not
be allowed a tax credit pursuant to this section directly, but the amount of
tax credit of a taxpayer in respect to a distributive share of entity income shall
be determined by allocating to the taxpayer that proportion of the tax credit
acquired by the entity that is equal to the taxpayer�s share, whether or not
distributed, of the total distributive income or gain of the entity for its
taxable year ending within or with the taxpayer�s taxable year.
���� (2)�� A New Jersey S
Corporation shall not be allowed a tax credit pursuant to this section
directly, but the amount of the tax credit of a taxpayer in respect of a pro
rata share of S Corporation income shall be determined by allocating to the
taxpayer that proportion of the tax credit acquired by the New Jersey S
Corporation that is equal to the taxpayer�s share, whether or not distributed,
of the total pro rata share of income of the New Jersey S Corporation for its
privilege period ending within or with the taxpayer�s taxable year.
���� e.���� (1) A taxpayer that
obtains a certification of the revenue loss from the director pursuant to
section 4 of P.L. ,
c. (C. )
(pending before the Legislature as this bill) may apply to the director for a
tax credit transfer certificate in lieu of the taxpayer being allowed any
amount of tax credit against the tax liability of the taxpayer, as authorized
under this section.� The tax credit transfer certificate, upon receipt thereof
by the taxpayer from the director, may be sold or assigned, in full or in part,
in the taxable year during which the taxpayer receives the tax credit transfer
certificate from the director, to another person, who may apply the credit
against a tax liability under the tax pursuant to the �Corporation Business Tax
Act (1945),� P.L.1945, c.162 (C.54:10A-1 et seq.), or the �New Jersey Gross
Income Tax Act,� N.J.S.54A:1-1 et seq.� The certificate provided to the
taxpayer shall include a statement waiving the taxpayer�s right to claim the
amount of the credit that the taxpayer has elected to sell or assign against
the tax for a tax liability.� The tax credit certificate issued to a taxpayer
by the director shall be subject to any terms and conditions that the director
may prescribe; provided, however, that the holder of a tax credit certificate
may transfer all or part of the tax credit amount, on or after the date of
issuance of the tax credit transfer certificate, for use by the transferee in
the tax period for which it was issued, in the tax period in which it was
issued, or in a successive tax period.
���� (2)�� The tax credit
certificate holder or transferee may first use the credit against tax
liabilities in the tax period in which it was issued or a succeeding tax
period, as authorized in this section, without the need to amend the tax return
for the tax period for which the credit was issued, subject to the provisions
of this subsection.� A transferee may carry forward an unused credit for use in
any of the next five successive tax periods, and the unused credit shall expire
thereafter.
���� f.���� As used in this
section:
���� �Full-time employee� means a
person who is employed by the small business for at least 35 hours per week at
a wage no less than the State minimum wage.
���� �Impacted construction zone�
means any area immediately surrounding a public highway project within which
area the occurrence of the public highway project impedes or blocks the normal
and reasonable flow of traffic or otherwise restricts access to business
establishments located within the area.�
���� �Public highway project� means
any infrastructure project that involves the construction, improvement, or
maintenance of a State, county, or municipal highway, road, or street,
including, but not limited to, the repair or reconstruction of any highway, road,
or street that has suffered serious damage as a result of a natural disaster or
catastrophic failure from any external cause.
���� �Retail business
establishment� means a small business that maintains a fixed permanent location
where goods are exhibited or services are offered on an appointment or walk-in
basis.
���� �Revenue loss� means the same
as the term is defined in section 4 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� �Small business� means a
business with no more than 50 full-time employees, is independently owned and
operated, has its principal place of business in the State of New Jersey, and
is not delinquent or deficient with respect to the payment of any State tax.
���� 4.��� a. As used in this
section:
���� �Actual receipts� means the
sum of the actual receipts, in dollars, received in compensation for goods and
services sold at a retail business establishment located within an impacted
construction zone during the relief period.
���� �Baseline receipts� means the
average sum of the actual receipts, in dollars, received in compensation for
goods and services sold at a retail business establishment located within an
impacted construction zone during the dates comprising the applicable relief
period in each of the four years immediately preceding such period.
���� �Director� means the Director
of the Division of Taxation in the Department of the Treasury.
���� �Full-time employee� means a
person who is employed by the small business for at least 35 hours per week at
a wage no less than the State minimum wage.
���� �Impacted construction zone�
means any area immediately surrounding a public highway project within which
area the occurrence of the public highway project impedes or blocks the normal
and reasonable flow of traffic or otherwise restricts access to business
establishments located within the area.�
���� �Public highway project� means
any infrastructure project that involves the construction, improvement, or
maintenance of a State, county, or municipal highway, road, or street,
including, but not limited to, the repair or reconstruction of any highway, road,
or street that has suffered serious damage as a result of a natural disaster or
catastrophic failure from any external cause.
���� �Relief period� means all or
part of the tax period for which a tax credit is sought in which work on a
public highway project is underway.
���� �Retail business
establishment� means a small business that maintains a fixed permanent location
where goods are exhibited or services are offered on an appointment or walk-in
basis.
���� �Revenue loss� the difference
between the baseline receipts and actual receipts for a retail business
establishment, provided that the amount of the actual receipts is lower than
amount of the baseline receipts.
���� �Small business� means a
business with no more than 50 full-time employees, is independently owned and
operated, has its principal place of business in the State of New Jersey, and
is not delinquent or deficient with respect to the payment of any State tax.
���� �Tax period� means a privilege
period under the �Corporation Business Tax Act (1945),� P.L.1945, c.162
(C.54:10A-1 et seq.), or a taxable year under the �New Jersey Gross Income Tax
Act,� N.J.S.54A:1-1 et seq., as applicable to the retail business
establishment.
���� b.��� A retail business
establishment that seeks a tax credit pursuant to section 2 or 3 of
P.L. ,
c. (C. or
C. ) (pending before the
Legislature as this bill) shall submit an application to the director, in a
form and manner prescribed by the director, for the certification of the retail
business establishment�s revenue loss experienced during an applicable tax
period as a result of a public highway project.� In addition to other information
and documentation that the director shall deem necessary, an application for
the certification of revenue loss shall include:
���� (1)�� evidence documenting
that the retail business establishment is located within an impacted
construction zone;
���� (2)�� business records and
receipts demonstrating the actual receipts of the retail business establishment
during the relief period for which the certification of revenue loss is sought;
���� (3)�� business records and
receipts demonstrating the baseline receipts of the retail business
establishment during the applicable relief period for which the certification
of revenue loss is sought; and
���� (4)�� an indication of the
dates of the beginning and ending of the tax period for which the application
is made.
���� c.���� The director shall
issue a certification of revenue loss for the purposes of sections 2 and 3 of
P.L. ,
c. (C. and
C. ) (pending before the
Legislature as this bill) to any retail business establishment whose
application meets the requirements of subsection b. of this section.
���� 5.��� a. A resident taxpayer who
is an employee of a retail business establishment within an impacted
construction zone shall be allowed a credit against the tax otherwise due under
the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., in an amount
equal to the lost wages experienced by the taxpayer during the taxable year as
a result of a modification or reduction to the taxpayer�s work schedule due to
the impacts of a public highway project.
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section, and any other
credits allowed by law against the tax imposed pursuant to the �New Jersey
Gross Income Tax Act,� 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 tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable
year, together with other payments, credits, deductions, and adjustments
allowed by law, shall not reduce a taxpayer�s tax liability to an amount lower
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
subsection or under 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 issued, after which the tax credit shall expire.
���� c.���� When filing a return
that includes a claim for a tax credit allowed pursuant to this section, a
taxpayer shall include a copy of the certification of lost wages for the
taxable year, as obtained from the director pursuant to section 6 of P.L. ,
c. (C. ) (pending
before the Legislature as this bill).
���� d.��� As used in this section:
���� �Full-time employee� means a
person who is employed by the small business for at least 35 hours per week at
a wage no less than the State minimum wage.
���� �Impacted construction zone�
means any area immediately surrounding a public highway project within which
area the occurrence of the public highway project impedes or blocks the normal
and reasonable flow of traffic or otherwise restricts access to business
establishments located within the area.�
���� �Lost wages� means the same as
the term is defined in section 6 of P.L. ,
c. (C. )
(pending before the Legislature as this bill).
���� �Public highway project� means
any infrastructure project that involves the construction, improvement, or
maintenance of a State, county, or municipal highway, road, or street,
including, but not limited to, the repair or reconstruction of any highway, road,
or street that has suffered serious damage as a result of a natural disaster or
catastrophic failure from any external cause.
���� �Retail business
establishment� means a small business that maintains a fixed permanent location
where goods are exhibited or services are offered on an appointment or walk-in
basis.
���� �Small business� means a
business with no more than 50 full-time employees, is independently owned and
operated, has its principal place of business in the State of New Jersey, and
is not delinquent or deficient with respect to the payment of any State tax.
���� 6.��� a. As used in this
section:
���� �Actual wages� means the
actual compensation received by an employee during the relief period for
services rendered at a business establishment.
���� �Baseline wages� means the
compensation that an employee would have otherwise received during the relief
period for services rendered at a business establishment had the employee�s
work schedule not been modified or reduced as a result of the impacts of a
public highway project.
���� �Full-time employee� means a
person who is employed by the small business for at least 35 hours per week at
a wage no less than the State minimum wage.
���� �Impacted construction zone�
means any area immediately surrounding a public highway project within which
area the occurrence of the public highway project impedes or blocks the normal
and reasonable flow of traffic or otherwise restricts access to business
establishments located within the area.�
���� �Lost wages� means the
difference between the baseline wages and actual wages for the employee of a
business establishment located within an impacted construction zone, provided
that the amount of the actual wages is lower than the amount of the baseline
wages.
���� �Public highway project� means
any infrastructure project that involves the construction, improvement, or
maintenance of a State, county, or municipal highway, road, or street,
including, but not limited to, the repair or reconstruction of any highway, road,
or street that has suffered serious damage as a result of a natural disaster or
catastrophic failure from any external cause.
���� �Relief period� means all or
part of the tax period for which a tax credit is sought in which work on a
public highway project is underway.�
���� �Retail business
establishment� means a small business that maintains a fixed permanent location
where goods are exhibited or services are offered on an appointment or walk-in
basis.
���� �Small business� means a
business with no more than 50 full-time employees, is independently owned and
operated, has its principal place of business in the State of New Jersey, and
is not delinquent or deficient with respect to the payment of any State tax.
���� b.��� A taxpayer that seeks a
tax credit pursuant to section 5 of P.L. ,
c. (C. )
(pending before the Legislature as this bill) shall submit an application to the
director, in a form and manner prescribed by the director, for the
certification of the taxpayer�s lost wages experienced as a result of a
modification or reduction in the taxpayer�s work schedule due to the impacts of
the public highway project.� In addition to other information and documentation
that the director shall deem necessary, an application for the certification of
lost wages shall include:
���� (1)�� evidence documenting
that the taxpayer is employed by a retail business establishment that is
located within an impacted construction zone;
���� (2)�� a written statement from
the taxpayer�s employer confirming that the taxpayer�s work schedule was
modified or reduced due to the� impacts of the public highway project, and
documenting the hourly wages paid to the employee during all times within the
relief period, as well as the times and dates on which the employee�s work
schedule was modified or reduced; and
���� (3)�� evidence documenting the
actual wages received by the taxpayer during the relief period.
���� c.���� The director shall
issue a certification of lost wages for the purposes of section 5 of
P.L. ,
c. (C. )
(pending before the Legislature as this bill) to any taxpayer whose application
meets the requirements of subsection b. of this section.
���� 7.��� The Director of 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.), rules
and regulations to implement the provisions of P.L. ,
c. (pending before the Legislature as this bill).
���� 8.��� There is appropriated
such amounts as are necessary from the General Fund to the Division of Taxation
in the Department of the Treasury to defray the costs of the credits authorized
against the remittance of sales and use tax collections pursuant to section 1
of P.L. ,
c. (C. )
(pending before the Legislature as this bill), subject to the approval of the Director
of the Division of Budget and Accounting in the Department of the Treasury.
���� 9.��� This act shall take
effect on the first day of the next month immediately following the date of
enactment, except that sections 2, 3, and 5 of this act shall apply to taxable
years and privilege periods beginning on or after the January 1 next following the
date of enactment.
STATEMENT
���� This bill, designated as the
�Road to Tax Relief Act,� provides various forms of tax relief to certain
businesses and employees who are adversely impacted by a public highway
project, such as the ongoing repair of Interstate 80 in Morris County after the
discovery of numerous sinkholes and voids along the roadway.
���� Specifically, a retail
business establishment that operates within an impacted construction zone would
be entitled to claim a refundable credit against the remittance required under
the �Sales and Use Tax Act,� P.L.1966, c.30 (C.54:32B-1 et seq.) in the amount of
taxes collected at the establishment during each month in which the public
highway project remains ongoing, less the portion of the tax that is
constitutionally dedicated to the Property Tax Relief Fund.� To claim the
credit, the retail business establishment would be required to submit an
application to the Director of the Division of Taxation (director) to verify
that the retail business establishment operates within an impacted construction
zone.� Upon approval of the application, the retail business establishment
would be permitted to claim a refundable credit against the requirement to
remit any tax collections for which the credit is claimed, subject to the
appropriation of funds for this purpose.� The bill also appropriates such
amounts as are necessary to defray the costs of the credits against sales tax
remittances.
���� Under the bill, an �impacted
construction zone� is defined as any area immediately surrounding a public
highway project within which area the occurrence of the public highway project
impedes or blocks the normal and reasonable flow of traffic or otherwise
restricts access to business establishments located within the area.� The bill
also defines a �retail business establishment� to include any small business,
with no more than 50 full-time employees, that maintains a fixed permanent
location where goods are exhibited or services are offered on an appointment or
walk-in basis.
���� Additionally, the bill
provides gross income tax and corporate income tax credits to retail business
establishments operating within an impacted construction zone in the amount of
the revenue losses experienced by the establishment as a result of the public
highway project.� To claim the credit, the retail business establishment would
be required to apply to the director for a certification of the establishment�s
revenue loss for the applicable tax period.� Under the bill, the retail
business establishment�s revenue loss would be calculated based on the
difference between: (1) the �baseline receipts,� which include the average sum
of the actual receipts, in dollars, received in compensation for goods and
services sold at the establishment during the dates comprising the applicable
relief period in the four prior years; and (2) the �actual receipts,� which
include the sum of the actual receipts, in dollars, received in compensation
for goods and services sold at a retail business establishment located within an
impacted construction zone during the relief period.
���� After approval of the
certificate of revenue loss, the retail business establishment would be
permitted to claim the tax credit.� However, the bill also permits the retail
business establishment to apply for a tax credit transfer certificate so that
part or all of the credit awarded may be sold or assigned in the tax period
during which the tax credit transfer certificate is received.
���� Lastly, the bill also provides
gross income tax credits to the employees of retail business establishments operating
within an impacted construction zone based on the amount of lost wages
experienced by the employee as a result of a modification or reduction to their
work schedule due to the impacts of a public highway project.� To claim the
credit, the employee would be required to apply to the director for a
certification of lost wages for the applicable tax period.� Under the bill, the
employee�s lost wages would be calculated based on the difference between: (1)
the �baseline wages,� which include the compensation that an employee would
have otherwise received during the relief period for services rendered at a
business establishment had the employee�s work schedule not been modified or
reduced as a result of the impacts of a public highway project; and (2) the
�actual wages,� which include the actual compensation received by an employee
during the relief period for services rendered at a business establishment.