SENATE NATURAL RESOURCES AND ECONOMIC DEVELOPMENT COMMITTEE

STATEMENT TO

SENATE, No. 447

STATE OF NEW JERSEY

DATED: MAY 9, 1996

      The Senate Natural Resources and Economic Development Committee favorably reports Senate Bill No. 447.

      This bill extends for certain companies with advanced technology research expenditures in New Jersey the carryforward of the net operating loss deduction under the corporation business tax.

      Taxpayers contributing to advanced technology research in New Jersey will be able, under this bill, to carry forward their net operating loss deduction for up to 15 years instead of the seven years allowed for other taxpayers. High technology, research intensive companies typically do not show a profit during their early years and often cannot fully utilize the carryforward of the net operating loss deduction during the first seven years following a net operating loss.