Within the hour, the General Assembly unanimously passed two pieces of legislation that will bring New Jersey's corporate tax code more in line with other states. Here at CIANJ, we applaud the Assembly and urge similar action from the Governor and the Senate.
Our press statement is available here. Read it. It includes video and a brief explanation of the bills.
- A-3124/S-2130 would allow companies to carry net operating losses forward for up to twenty years. The bill now heads to the Governor's desk.
- A-2722 would eliminate the "throw-out" rule. This harmful provision is a holdover from the tax increases pushed through during the McGreevey Administration. Under it, a company with a presence in New Jersey can be taxed for sales that neither begin nor end in the state. As Assemblyman O'Scanlon said during the debate, a company can have 1% of its sales take place here, but 100% of its profits would be taxable under New Jersey law. Think that hypothetical company would stick around?
