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Exempts the Sales of Investment Metal Bullion and Certain Investment Coins from Sales and Use Tax
This law exempts receipts of investment metal bullion and investment coin sales from Sales and Use Tax. “Investment metal bullion” is defined as any elementary precious metal that has been put through a process of smelting or refining. This includes, but is not limited to, gold, silver, platinum, and palladium in a state or condition that its value depends on its contents, not its form. It does not include any precious metal that has been assembled, fabricated, manufactured, or processed for industrial, aesthetic, or artistic use.
“Investment coin” is defined as any numismatic coin manufactured of gold, silver, platinum, palladium, or other metal having fair market value of not less than $1,000, and does not include jewelry or works of art made of coins or commemorative medallions.
Effective: September 12, 2024, and applies to receipts received from retail sales made on or after January 1, 2025
Establishes Next New Jersey Program for Artificial Intelligence Investments
This law establishes the “Next New Jersey Program” under the jurisdiction of the New Jersey Economic Development Authority, and modifies certain parts of the “New Jersey Economic Recovery Act of 2020.” Beginning July 25, 2024, through March 1, 2029, a business that is primarily engaged in the artificial intelligence industry may apply to receive tax credit that may be applied against their Corporation Business Tax or Insurance Premium Tax liabilities.
Amends Economic Development Authority Tax Credits for Certain Incentive Programs
The law amends eligibility requirements that the New Jersey Economic Development Authority will use to award tax credits for the Business Retention and Relocation Assistance Act, the Business Employment Incentive Program Act, the Urban Transit Hub Tax Credit Act, and the Grow New Jersey Assistance Act programs.
This law amendment address the treatment of wages paid under reciprocity agreements for the Garden State Film and Digital Media Jobs Act. It expands the definition of “qualified film production expenses” and “qualified digital media content production expenses” to include the treatment of New Jersey wages and salaries paid to Pennsylvania. “Full-time of full-time equivalent employee” was also modified to include Pennsylvania residents working in New Jersey.
Adds a 2.5 percent Corporate Transit Fee under Corporation Business Tax
This law imposes a 2.5 percent Corporate Transit Fee on Corporation Business Tax (CBT) taxpayers with allocated taxable net income in excess of $10 million. The Corporate Transit Fee is in addition to the taxpayer’s regular CBT liability, and taxpayers cannot claim a credit against the fee except for credits for installment payments, estimated payments made with request for an extension of time to file a return, or overpayments from prior privilege periods.
“Allocated taxable net income” means the same as “taxable net income” as defined in the Corporation Business Tax Act for the purpose of this bill.
Effective: June 28, 2024. Applies to privilege periods beginning on and after January 1, 2024, through December 31, 2028
Phases Out Sales and Use Tax Exemptions on Zero Emission Vehicles and Repeals the Annual Sales Tax Holiday
This law phases out the Sales and Use tax exemption for sales of zero emission vehicles in two phases. Effective October 1, 2024 through June 30, 2025, the Sales Tax rate will be 3.3125 percent. Beginning July 1, 2025, the Sales Tax rate on zero emission vehicles will be imposed at the full statutory rate, currently 6.625 percent.
The law also repeals the annual Sales Tax holiday for the sale of certain school supplies and sport or recreational equipment.
This law allows taxpayers to utilize an alternative method to calculate a depreciation deduction of eligible expenditures in connection with the construction of new affordable housing developments for Corporation Business Tax and Gross Income Tax.
"Eligible property expenditures" are defined as capital expenditures incurred by the taxpayer in connection with the construction of a new affordable housing development owned by the taxpayer.
Adds Sales and Use Tax Exemption for Affordable Housing Projects
The law amendment provides a sales and use tax exemption for purchases made by contractors or repair persons of materials, supplies, and services for certain affordable housing projects. All units must be for occupants with moderate, low, or very low incomes as defined in the “Fair Housing Act”.
Adds a Property Tax Exemption under the "Fair Housing Act"
The law amends the “Fair Housing Act” to allow projects supported by the “New Jersey Affordable Housing Trust Fund” to be exempt from property tax and to instead contribute to municipal services by making payments in lieu of taxes.
The governing body of a municipality in which a housing project or program is located and awarded a grant or loan from the “New Jersey Affordable Housing Trust Fund” is exempt from property taxes if the housing sponsor enters into an agreement with the municipality for payments in lieu of taxes (PILOT) for municipal services.
The law also allows the governing body of a municipality to negotiate a PILOT agreement with a housing sponsor whose project is funded through municipal housing development fees.
The tax exemption cannot extend past the date on which the eligible loan made for the project is paid in full. However, the municipality may agree to continue a tax exemption beyond the date the loan is paid in full if the project remains subject to specific affordability controls outlined in the law.
Revises "New Jersey Transportation Trust Fund Authority Act" and Calculation of Gas Tax Rate
Beginning Fiscal Year 2025, the law increases the highway fuel cap annually through fiscal year 2029. It also changes the date from August 15 to November 15 by which the State Treasurer and the Legislative Budget and Finance Officer must determine the total revenue derived from the taxes collected in the prior State fiscal year.
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