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S4521
SENATE, No. 4521
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED JUNE 26, 2026
Sponsored by:
Senator� DOUGLAS J. STEINHARDT
District 23 (Hunterdon, Somerset and Warren)
SYNOPSIS
���� Provides CBT and gross income tax credits for
construction or expansion of certain meat processing facilities.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
providing tax credits for the construction or expansion
of certain meat processing facilities and supplementing P.L.1945, c.162
(C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� As used in this
section:
���� �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.
����
�Secretary�
means the Secretary of Agriculture.
����
������ b.�
For privilege periods beginning on or after the January 1 next following the
effective date of P.L. , c.
(C. ) (pending
before the Legislature as this bill), and for the next five taxable years
thereafter, a taxpayer who invests in a project to construct a rural meat
processing facility, or a project to expand an existing rural meat processing
facility, shall be allowed a credit against the tax imposed pursuant to section
5 of P.L.1945, c.162 (C.54:10A-5), to be calculated as provided in paragraph
(2) of this subsection, to compensate the taxpayer for a portion of the
taxpayer�s expenditure on the project.
���� (1) To qualify for the tax
credit allowed pursuant to this section, a taxpayer shall apply, in a form and
manner determined by the secretary, to the secretary for a certification that
provides: (a) evidence that the taxpayer provided funding to a project to
construct a rural meat processing facility, or a project to expand an existing
rural meat processing facility; (b) evidence that the project included a
smokehouse, sausage line, packaging facility, or cold storage facility, if
applicable; (c) evidence that the project is coordinating with a regional
agricultural innovation center for workforce alignment, producer integration,
and supply chain development; and (d) the amount of the tax credit calculated
pursuant to paragraph (2) of this subsection.� The secretary shall transmit a
copy of any certification issued pursuant to this subsection to the taxpayer
and the director.
���� (2)� The amount of the credit
authorized pursuant to this section shall not exceed the lesser of:
���� (a) 20 percent of the total
costs incurred by the taxpayer after the effective date of
P.L. ,
c. (C. )
(pending before the Legislature as this bill) to provide funding to a project
to construct a rural meat processing facility, or a project to expand an
existing rural meat processing facility, or 30 percent of the total costs
incurred if the project includes a smokehouse, sausage line, packaging
facility, or cold storage facility; or
���� (b) $5,000,000.
���� c.� 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 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 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).� The amount of the tax credit
otherwise allowable under this section which cannot be applied for the
privilege period may be carried forward, if necessary, to the four privilege
periods following the privilege period for which a portion of the tax credit
was allowed.
���� d.� 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 $50 million.
���� e.� No tax credit shall be
allowed pursuant to this section for any costs or expenses included in the
calculation of any other tax credit or exemption granted pursuant to a claim
made on a tax return filed with the director, or included in the calculation of
an award of business assistance or incentive, for a period of time that
coincides with the privilege period for which a tax credit pursuant to this
section is allowed.
���� f.�
The
secretary, in consultation with the director, 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 five years after the effective date of 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 projects
to construct or expand rural meat processing facilities.
���� 2.��� a.
�
As used in this section:
���� �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.
����
�Secretary�
means the Secretary of Agriculture.
���� b.� For privilege periods
beginning on or after the January 1 next following the effective date of
P.L. , c.
(C. ) (pending
before the Legislature as this bill), and for the next five taxable years
thereafter, a taxpayer who invests in a project to construct a rural meat
processing facility, or a project to expand an existing rural meat processing
facility, 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., to be calculated as provided
in paragraph (2) of this subsection, to compensate the taxpayer for a portion
of the taxpayer�s expenditure on the project.
���� (1) To qualify for the tax
credit allowed pursuant to this section, a taxpayer shall apply, in a form and
manner determined by the secretary, to the secretary for a certification that
provides: (a) evidence that the taxpayer provided funding to a project to
construct a rural meat processing facility, or a project to expand an existing
rural meat processing facility; (b) evidence that the project included a
smokehouse, sausage line, packaging facility, or cold storage facility, if
applicable; (c) evidence that the project is coordinating with a regional
agricultural innovation center for workforce alignment, producer integration,
and supply chain development; and (d) the amount of the tax credit calculated
pursuant to paragraph (2) of this subsection.� The secretary shall transmit a
copy of any certification issued pursuant to this subsection to the taxpayer
and the director.
���� (2) The amount of the credit
authorized pursuant to this section shall not exceed the lesser of:
���� (a) 20 percent of the total
costs incurred by the taxpayer after the effective date of
P.L. ,
c. (C. )
(pending before the Legislature as this bill) to provide funding to a project
to construct a rural meat processing facility, or a project to expand an
existing rural meat processing facility, or 30 percent of the total costs
incurred if the project includes a smokehouse, sausage line, packaging
facility, or cold storage facility; or
���� (b) $5,000,000.
���� c.� 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 four taxable years following the taxable year for which the tax credit was
allowed.
����
d.�
No
tax credit shall be allowed pursuant to this section for any costs or expenses
included in the calculation of any other tax credit or exemption granted
pursuant to a claim made on a tax return filed with the director, or included
in the calculation of an award of business assistance or incentive, for a
period of time that coincides with the taxable year, for which a tax credit
authorized pursuant to this section is 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 $50 million.
���� f.� (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 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 S Corporation income of the New Jersey S Corporation for its
privilege period ending within or with the taxpayer�s taxable year.
���� g.�
The
secretary, in consultation with the director, 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.
���� h.�
No
later than five years after the effective date of 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 projects
to construct or expand rural meat processing facilities.
���� 3. This act shall take effect
immediately.
STATEMENT
���� This bill establishes tax
incentives for taxpayers who provide funding to certain projects to construct
or expand rural meat processing facilities.
���� Specifically, the bill would
establish a tax credit against the Corporation Business Tax (CBT) and the
income tax imposed pursuant to the "New Jersey Gross Income Tax Act,"
N.J.S.54A:1-1 et seq.� The tax credit would be for 20 percent of the costs
expended by the taxpayer on the project, or 30 percent of the costs, if the
project includes a smokehouse, sausage line, packaging facility, or cold
storage facility.� Each tax credit would be capped at $5 million and the total
cumulative amount of all credits authorized by the bill would be capped at $50
million.� The tax credits would expire after five years.�
���� In order to receive a tax
credit, a taxpayer would be required to apply to the Secretary of Agriculture
for a certification.� The application would be required to include:� (1)
evidence that the taxpayer provided funding to a project to construct a rural
meat processing facility, or a project to expand an existing rural meat
processing facility; (2) evidence that the project included a smokehouse,
sausage line, packaging facility, or cold storage facility, if applicable; (3)
evidence that the project is coordinating with a regional agricultural
innovation center for workforce alignment, producer integration, and supply
chain development; and (4) the amount of the tax credit.