CCH Tax Day Report
New Jersey legislation revises the priority schedule for the issuance of tax credits converted from grants that were awarded for income or insurance taxes under the business employment incentive program. The bill provides that for grants accrued, but not paid, during calendar years 2008 through 2013, the tax credit will equal an approved amount and will be issued in installments. A total of five installments will be issued over a five-year period, beginning in the 2017 tax accounting or privilege period of the business (or tax credit transferee) in the following percentages: five percent of the accrued amount in year one; 20% of the accrued amount in year two; and 25% of the accrued amount for each of the remaining three years. Previously, the following percentages applied: 30% percent of the accrued amount in year one; 30% of the accrued amount in year two; 20% of the accrued amount in year three; and 10% of the accrued amount for years four and five.
Ch. 26 (A.B. 4002), Laws 2016, June 30, 2016