Small Business Friendly Tax Legislation Moving in the NJ Legislature

Date: January 19, 2021

The Senate Budget Committee is moving two important bills today to support NJ businesses. Eileen Kean, NFIB State Director testified supporting both. The first bill, S-3234 matches federal rules and ensures. The bill also addresses the deduction of expenses. The IRS already has guidance on allowing expenses paid with PPP loan proceeds to be deducted. S-3234 matches federal rules. It remedies New Jersey taxes by allowing business taxpayers to deduct expenses, even if the expenses were paid with a PPP loan that is forgiven and not taxable. 

The second bill, S-3305 allows a gross income tax credit for nonresidential building improvement expenses to reduce the spread of COVID-19. The credit will be allowed for expenditure made during taxable years 2020, 2021, and 2022. The following expenditures will be included in calculation of the credit: expenditures for (1) bi-polar ionization and ultraviolet lighting to disinfect indoor air and surfaces, including in elevators and work areas; (2) infrared thermometers for screening visitors in common areas; (3) transparent sneeze guards or shields; (4) touchless entryway and security; (5) ventilation; and (6) other equipment to reduce the spread of COVID-19 and necessary to create a safe environment for employers and employees to return to their work spaces

NFIB is grateful that legislation is moving that supports small businesses.  Perhaps the challenge will be getting Governor Murphy to agree and sign the bills into law.

 

Related Content: Small Business News | New Jersey

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