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The Economic Redevelopment and Growth Grant Program extension extends document submission deadlines for the Urban Transit Hub Tax Credit program and Economic Redevelopment and Growth Grant Program.
The Revised Corporation Business Tax Surtax Act imposes a surtax in addition to the tax paid by each taxpayer as determined pursuant to section 5 of P.L.1945, c. 162 (C.53:10A-5). Any business, except a public utility, that has allocated taxable net income in excess of $1 million for the privilege periods, beginning on or after January 1, 2018 through December 31, 2023, the surtax imposed is 2.5% provided, however, that if the federal corporate income tax rate imposed pursuant to section 11 of the Federal Internal Revenue Code of 1986 (26 U.S.C. s.11) is increased to a rate of at least 35% of taxable income, the imposition of the surtax imposed pursuant to this law will be suspended following the conclusion of a taxpayer's privilege period corresponding with the increase to the federal corporate income tax rate.
The Director of Taxation will waive all penalties incurred by a taxpayer because of the retroactive imposition of an increased surtax rate pursuant to P.L.2020, Chapter 95.
Effective: September 29, 2020, this law is retroactive and applies to privilege periods beginning on or after January 1, 2020.
The Gross Income Tax Rate increases to 10.75 percent for taxable income over $1 million but less than $5 million for Tax Years beginning on or after January 1, 2020. The law requires employers who pay wages over $1 million, but not over $5 million, to withhold tax at a rate of 21.3% beginning no later than November 1, 2020, for the remainder of 2020.
The law also authorizes a tax rebate, subject to appropriation by the Legislature, beginning in Tax Year 2020 for qualified taxpayers. The rebate will be $500, or an amount equal to the amount of tax paid after credits, whichever is less, pursuant to N.J.S.A. 54A:1-1 et seq. The Division will issue rebates to qualified taxpayers between July 1 and July 31 of the subsequent Tax Year. Qualified taxpayers who are granted an extension to file their return may be issued a rebate between July 1 and December 31 of the subsequent Tax Year.
Effective: September 29, 2020, this law is retroactive and applies to Tax Years beginning on and after January 1, 2020.
The Expansion of the New Jersey Earned Income Tax Credit Program (NJEITC) expands the eligibility of the NJEITC to resident taxpayers who are at least 21 years old without a qualifying child. The New Jersey tax credit calculation for these taxpayers is predicated on the maximum federal amount for taxpayers with no qualifying child.
Effective: September 29, 2020, this law is retroactive and applies to Tax Years beginning on and after January 1, 2020.
New Jersey Gross Income Tax Exclusion of Combat Zone Compensation excludes from New Jersey Gross Income Tax any amount received as combat zone compensation by members of the Armed Forces of the United States that is excluded from federal taxable income pursuant to section 112 of the Federal Internal Revenue Code of 1986 (26 U.S.C. s.112).
Effective: September 28, 2020, this law is applicable to Tax Years beginning on or after January 1, 2021.
An Act concerning the delivery and sale of alcoholic beverages during a declared state of emergency temporarily permits manufacturers and licensees to sell and deliver alcoholic beverages. The Alcoholic Beverage Control must publish a website notice to notify licensees of certain tax exemptions, for example, the sale or delivery of alcohol used in the production of hand sanitizer during a state of emergency. A license holder must submit to the Division of Taxation satisfactory evidence of such sale, delivery, and intended use of the alcohol for exempt preparations.
Effective: May 15, 2020. This law expires the later of:
The date all executive and administrative orders issued by the Governor or Commissioner of Health regarding COVID-19 occupancy or customer seating restrictions on the licensed premises are lifted; or
The first day of the seventh month after the Governor declares the state of emergency over.
The "COVID-19 Fiscal Mitigation Act" clarifies the filing and payment deadline for Corporation Business Tax and Gross Income Tax filers, modifies both the duration of State Fiscal Years 2020 and 2021 and the Division's responsibilities for payment of interest of refunds, and requires the Treasurer to prepare a report on the financial condition of the budget for Fiscal Years 2020 and 2021.
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