[First Reprint]

SENATE, No. 3404

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED FEBRUARY 4, 2021

 


 

Sponsored by:

Senator  VIN GOPAL

District 11 (Monmouth)

Senator  JOSEPH A. LAGANA

District 38 (Bergen and Passaic)

 

Co-Sponsored by:

Senators Diegnan, Thompson and Greenstein

 

 

 

 

SYNOPSIS

     Allows certain taxpayers to accelerate depreciation of certain expenditures under corporation business and gross income taxes.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Budget and Appropriations Committee on December 6, 2021, with amendments.

  


An Act allowing certain 1[restaurant owners] taxpayers1 to accelerate depreciation of certain expenditures under corporation business and gross income taxes, supplementing P.L.1945, c.162 and Title 54A of Revised Statutes.

 

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

 

     1.    a.  Notwithstanding paragraph (12) of subsection (k) of section 4 of P.L.1945, c.162 (C.54:10A-4), a taxpayer who is 1the owner of1 a small business restaurant 1[owner] , wedding venue, banquet hall, or an alcoholic beverage manufacturer1 shall be allowed the additional depreciation allowance of subsection (k) of section 168 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.168) for up to $150,000 of eligible property expenditures for the restaurant1, wedding venue, banquet hall, or alcoholic beverage manufacturer1.  The director shall prescribe the rules and regulations necessary to carry out the provisions of this section.

     b.    As used in this section:

     1“Alcoholic beverage manufacturer” means a limited brewery, winery, distillery, cidery, or meadery licensed pursuant to R.S.33:1-10.1

     “Director” means Director of the Division of Taxation in the Department of the Treasury.

     “Eligible property expenditures” means capital expenditures incurred by the taxpayer to comply with the health and safety requirements imposed under the executive orders issued by the Governor in response to the COVID-19 pandemic, including but not limited to the purchase of heaters and overhangs 1and upgrades to heating, ventilation, and air conditioning systems1

     “Small business restaurant” means a restaurant as defined in section 1 of P.L.1983, c.488 (C.26:3E-1) with not more than 100 employees, but shall not include a restaurant 1[with] if its owner also owns1 more than two 1[separate] restaurants that are operated under the same name as the small business restaurant1 at locations outside the State.

 

     2.    a.  Notwithstanding section 26 of P.L.2004, c.65 (C.54A:5-1.2), a taxpayer who is 1the owner of1 a small business restaurant 1[owner] , wedding venue, banquet hall, or an alcoholic beverage manufacturer1 shall be allowed the additional depreciation allowance of subsection (k) of section 168 of the federal Internal Revenue Code of 1986 (26 U.S.C. s.168) for up to $150,000 of eligible property expenditures for the restaurant1, wedding venue,

banquet hall, or alcoholic beverage manufacturer1, provided that, section 26 of P.L.2004, c.65 (C.54A:5-1.2) prohibited such additional depreciation allowance.  The director shall prescribe the rules and regulations necessary to carry out the provisions of this section.

     b.    As used in this section:

     1“Alcoholic beverage manufacturer” means a limited brewery, winery, distillery, cidery, or meadery licensed pursuant to R.S.33:1-10.1

     “Director” means Director of the Division of Taxation in the Department of the Treasury.

     “Eligible property expenditures” means capital expenditures incurred by the taxpayer to comply with the health and safety requirements imposed under the executive orders issued by the Governor in response to the COVID-19 pandemic, including but not limited to the purchase of heaters and overhangs 1and upgrades to heating, ventilation, and air conditioning systems1

     “Small business restaurant” means a restaurant, as defined in section 1 of P.L.1983, c.488 (C.26:3E-1) with not more than 100 employees, but shall not include a restaurant 1[with] if its owner also owns1 more than two 1[separate] restaurants that are operated under the same name as the small business restaurant1 at locations outside the State.

 

     3.    This act shall take effect immediately 1and shall be retroactive to March 9, 20201.