[First Reprint]

ASSEMBLY, No. 1101

STATE OF NEW JERSEY

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman CORODEMUS

An Act providing a credit under the corporation business tax for certain dredged material disposal expenses, and 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, subject to the provisions of subsection b. of this section, against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the difference between the real expenses incurred in the employment of a non-ocean disposal alternative for the disposal of contaminated dredged materials and the real expenses that would have been incurred in the employment of an ocean disposal alternative, if such an ocean disposal alternative were authorized by law, rule or regulation, for the privilege period.

    b. No credit shall be allowed under section 42 of P.L.1987, c.102 (C.54:10A-5.3), or under the "Manufacturing Equipment and Employment Investment Tax Credit Act," P.L.1993, c.171 (C.54:10A-5.16 et al.), or under P.L.1993, c.170 (C.54:10A-5.4 et seq.), for property or expenditures for which a credit is allowed, or which are includable in the calculation of a credit allowed, under this section.

    The tax imposed for a privilege period pursuant to section 5 of P.L.1945, c.162, shall first be reduced by the amount of any credit allowed pursuant to section 19 of P.L.1983, c.303 (C.52:27H-78), then by any credit allowed pursuant to section 12 of P.L.1985, c.227 (C.55:19-13), then by any credit allowed pursuant to section 42 of P.L.1987, c.102 (C.54:10A-5.3), then by any credit allowed under section 3 of P.L.1993, c.170 (C.54:10A-5.6), then by any credit allowed under section 3 or 4 of P.L.1993, c.171 (C.54:10A-5.18 or C.54:10A-5.19), ¹[and]¹ then by any credit allowed under section 1 of P.L.1993, c.175 (C.54:10A-5.24), ¹and then by any credit allowed under section 1 of P.L.1993, c.150 (C.27:26A-15),¹ prior to applying any credits allowable pursuant to this section. Credits allowable pursuant to this section shall be applied in the order of the credits' privilege periods. The amount of the credits applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, for a privilege period 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. The amount of privilege period credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit amount was allowed.

    2. This act shall take effect immediately and apply to real expenses incurred in privilege periods beginning on or after January 1 next following enactment.

Establishes corporation business tax credit for non-ocean disposal of contaminated dredged materials.