ASSEMBLY, No. 1082

STATE OF NEW JERSEY

216th LEGISLATURE

PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION

 


 

Sponsored by:

Assemblywoman  VALERIE VAINIERI HUTTLE

District 37 (Bergen)

Assemblyman  JOSEPH A. LAGANA

District 38 (Bergen and Passaic)

 

Co-Sponsored by:

Assemblyman DeAngelo

 

 

 

 

SYNOPSIS

     Allows credit against corporation business tax equal to 50 percent of fair market value of new computer equipment donated to public or nonpublic school.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

 


An Act allowing a credit against the corporation business tax equal to 50 percent of the fair market value of new computer equipment donated to a public or nonpublic school, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  A taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to 50% of the fair market value of new computer equipment donated to a public or nonpublic school.

     b.    As used in this section:

     "New computer equipment" means any computer equipment or devices, including but not limited to all input, output, processing, storage, software, or communications facilities, intended to interface with a computer, none of which are obsolete or previously used, provided that the donation of such equipment is approved by the board of education of the school district in which the public school is located or by the chief administrator of the nonpublic school; and

     "Nonpublic school" means an elementary or secondary school within the State, other than a public school, offering education in grades K-12 or any combination thereof, wherein a child may legally fulfill compulsory school attendance requirements.

     c.    The order of priority of the credit allowed under this section and any other credits allowed by law shall be as prescribed by the Director of the Division of Taxation.  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 exceed 50% of the tax liability otherwise due and 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).

     d.    The amount of any credit otherwise allowable under this section that cannot be applied for the privilege period due to the limitations of subsection c. of this section may be carried over to the three privilege periods following the period for which the amount was allowed.

     e.    A taxpayer intending to claim a credit under this section for the donation of new computer equipment shall first obtain from the board of education of the school district in which the public school is located or from the chief administrator of the nonpublic school, a certified statement of the approval of the donation by the board of education or the chief administrator, in such form as the Director of the Division of Taxation shall prescribe, which statement shall include an itemized inventory of the new computer equipment, indicating for each item its fair market value, together with any additional information as the director may require. When filing a tax return that includes a claim for a credit pursuant to this section, the taxpayer shall include a copy of that certified statement.

 

     2.    This act shall take effect immediately and shall apply to privilege periods ending on or after July 1 next following the date of enactment.

 

 

STATEMENT

 

     This bill allows a credit against the corporation business tax equal to 50 percent of the fair market value of new computer equipment donated to public or nonpublic schools.  The purpose of this tax credit is to improve students' access to technology by encouraging donations of computer equipment to schools.

     This tax credit, together with any other allowable tax credit, is limited to 50 percent of the corporation business tax otherwise due in any year, and may not reduce tax liability to less than the statutory minimum.  The amount of any unused tax credit in a tax year resulting from these limitations may be carried over to any of the next three tax years.

     Under the bill, "new computer equipment" means any computer equipment or devices, including but not limited to all input, output, processing, storage, software, or communications facilities, intended to interface with a computer, none of which are obsolete or previously used, provided that the donation of such equipment is approved by the board of education of the school district in which the public school is located or by the chief administrator of the nonpublic school. "Nonpublic school" means an elementary or secondary school within the State, other than a public school, offering education in grades K-12 or any combination thereof, wherein a child may legally fulfill compulsory school attendance requirements.