ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 5218

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED: †MARCH 8, 2021

 

††††† The Assembly Commerce and Economic Development Committee reports favorably and with committee amendments Assembly Bill No. 5218.

†††† This bill, as amended, would allow the owner of a small restaurant or of an alcoholic beverage manufacturer to use a bonus depreciation allowance of up to $150,000 for capital expenditures incurred within New Jersey to comply with the health and safety requirements of the Governorís executive orders regarding the COVID-19 pandemic.† These capital expenditures would include but are not limited to the purchase of heaters and overhangs.† This benefit would be available to a restaurant owner if the restaurant has no more than 100 employees, and if the restaurant is not a chain restaurant.

††††† Bonus depreciation allows a business to immediately deduct a large percentage of the purchase price of certain property.† New Jersey decoupled from the federal rules regarding bonus depreciation in 2002.† This bill re-couples to the federal rules for small business restaurant owners on up to $150,000 of expenditures incurred to comply with the Governorís COVID-19 executive orders.

 

COMMITTEE AMENDMENTS:

††††† Amendments to the bill extend eligibility for the additional depreciation allowance to owners of alcoholic beverage manufacturers.