Yesterday, the Governor signed legislation that our regular blog readers could probably recite by heart: S-2130 would allow companies to carry their net operating losses forward for twenty tax years, rather than the current standard of seven. The bill puts New Jersey in line with about half of the states plus the federal government.
- The Governor's press release is available here
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This is the link to CIANJ's statement regarding the NOL bill and elimination of the throw-out rule.
Earlier this year, the Tax Foundation reported that New Jersey had the worst corporate tax climate in America. Despite the poo pooing of this report by our progressive friends, a tax climate actually does impact business decisions.
Start-up companies, especially technology firms, often operate at a loss in their first few years. Having a NOL carry-forward that is shorter than our bordering states provides incentive for these companies to locate in those states.
We applaud the Governor and legislature for recognizing this problem, which is a holdover from the corporate tax "reform" passed during the McGreevey Administration, and continue to push for the more sweeping changes that are still in the legislature.
Here is the video from CIANJ's appearance on My9's New Jersey Now to discuss the bill signed yesterday.
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