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NJ Senate Passes Biz Tax Credits For PPE-Making Jobs

By Abraham Gross · November 16, 2020, 4:05 PM EST

The New Jersey Senate passed legislation Monday that would provide temporary corporation business tax and gross income tax credits for the creation of jobs related to manufacturing personal protective equipment amid the COVID-19 pandemic.

S.B. 3015, which passed without opposition, would provide credits to taxpayers that make minimum investments in qualified manufacturing facilities in New Jersey that create or retain full-time jobs. A $10,000 credit would be available for the creation of each new full-time job created through 2022.

Under the bill, personal protective equipment includes coveralls, face shields, gloves, gowns, masks, respirators and other equipment for protecting people from infections or illnesses.

Taxpayers would also be eligible for a $1,000 tax credit for each qualifying full-time job at a qualified facility that has been vacant for at least seven years and is at least 250,000 square feet. The bill also establishes a $1,500 credit for each job in which manufacturing the personal protective equipment is part of a research collaboration between the taxpayer and a New Jersey college or university. A $1,000 credit would be allowed for each job at qualified facilities that have apprenticeship or pre-apprenticeship programs established with technical schools or community colleges in the state.

The credits will be allowed for privilege periods ending in 2020, 2021 and 2022 under the corporation business tax and taxable years 2020, 2021 and 2022 under the gross income tax, according to the bill.

The bill now heads to the Assembly, where an identical bill, A.B. 4840, has remained in committee. 

The measure was introduced on Oct. 19 and was approved by a Senate committee on Nov. 9. The bill is sponsored by New Jersey Senate President Stephen Sweeney, D-West Deptford, and Linda R. Greenstein, D-Plainsboro.

--Additional reporting by Asha Glover. Editing by Joyce Laskowski. 

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