ASSEMBLY ENVIRONMENT, SCIENCE AND TECHNOLOGY COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 963

STATE OF NEW JERSEY

DATED: APRIL 22, 1996

      The Assembly Environment, Science and Technology Committee favorably reports an Assembly Committee Substitute for Assembly Bill No. 963.

      This committee substitute extends the carryforward of the research and development tax credit under the corporation business tax from seven to 15 years for certain advanced technology corporations, particularly those in the fields of advanced computing, advanced materials, biotechnology, electronic device technology, environmental technology, and medical device technology. The research and development tax credit allows a credit for increases in qualified research expenditures over a base amount and for certain basic research payments incurred in New Jersey beginning in January 1994. Currently, the credit may be carried forward up to seven years if it cannot be used because of tax liability limitations.