Bill Text: NJ S1178 | 2012-2013 | Regular Session | Introduced
Bill Title: Concerns temporary suspension of the application of corporation business tax and gross income tax credits for film and digital media content production expenses.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-04-29 - Withdrawn from Consideration [S1178 Detail]
Download: New_Jersey-2012-S1178-Introduced.html
Sponsored by:
Senator LORETTA WEINBERG
District 37 (Bergen)
SYNOPSIS
Concerns temporary suspension of the application of corporation business tax and gross income tax credits for film and digital media content production expenses.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the temporary suspension of the application of the corporation business tax and the gross income tax credits for film and digital media content production expenses, repealing sections 2 and 3 of P.L.2010, c.20 and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Sections 2 and 3 of P.L.2010, c.20 (C.54:10A-5.39a and 54A:4-12a) are repealed.
2. (New section) a. Notwithstanding the limitations on claims for credit or refund pursuant to the provisions of any law, rule, or regulation to the contrary, a taxpayer who is allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in accordance with section 1 of P.L.2005, c.345 (C.54:10A-5.39) may elect to file an amended return on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) but before the last day of the second full year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) to claim the amount of any credit which (1) was not permitted to be applied against that taxpayer's liability for tax in State fiscal year 2011 as a result of the temporary suspension of the application of credits imposed pursuant to section 2 of P.L.2010, c.20 (C.54:10A-5.39a) and which (2) was not subsequently applied against the taxpayer's liability for tax following the termination of the temporary suspension of the application of credits imposed pursuant to section 2 of P.L.2010, c.20 (C.54:10A-5.39a).
b. An amended return filed to claim a credit or a refund in accordance with subsection a. of this section shall be filed by the taxpayer with the Director of the Division of Taxation in the Department of the Treasury on such forms and in such manner as the director may prescribe; provided however, that an amended return which results in an overpayment of tax for purposes of R.S.54:49-15 shall be subject to the provisions of section 7 of P.L.1992, c.175 (C.54:49-15.1).
3. (New section) a. Notwithstanding the limitations on claims for credit or refund pursuant to N.J.S.54A:9-8 or the provisions of any other law, rule, or regulation to the contrary, a taxpayer who is allowed a credit against the tax otherwise due for the taxable year pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. in accordance with section 2 of P.L.2005, c.345 (C.54A:4-12) may elect to file an amended return on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) but before the last day of the second full year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) to claim the amount of any credit which (1) was not permitted to be applied against that taxpayer's liability for tax in State fiscal year 2011 as a result of the temporary suspension of the application of credits imposed pursuant to section 3 of P.L.2010, c.20 (C.54A:4-12a) and which (2) was not subsequently applied against the taxpayer's liability for tax following the termination of the temporary suspension of the application of credits imposed pursuant to section 3 of P.L.2010, c.20 (C.54A:4-12a).
b. An amended return filed to claim a credit or a refund in accordance with subsection a. of this section shall be filed by the taxpayer with the Director of the Division of Taxation in the Department of the Treasury on such forms and in such manner as the director may prescribe; provided however, that an amended return which results in an overpayment of tax for purposes of N.J.S.54A:9-7 shall be subject to subsection (f) of that section.
4. This act shall take effect immediately.
STATEMENT
This bill repeals the temporary suspension on the application of the corporation business tax and gross income tax credits for film and digital media content production expenses which was imposed by P.L.2010, c.20, and permits taxpayers to file an amended tax return to claim a credit or a refund for the amount of any tax credit prohibited from being applied against the taxpayer's liability for tax as a result of the suspension.
P.L.2010, c.20 suspended, for one year, the application of the film and digital media tax credits allowed under the corporation business tax and the gross income tax as a means to forgo the revenue loss associated with the allowance of those credits in State fiscal year 2011. Under the suspension, any previously awarded film or digital media tax credit and any previously awarded film or digital media tax credit transfer certificate, whether held by the original applicant or purchased by a third party, was prohibited from being used to reduce a taxpayer's liability for tax on a tax return with an original due date which fell after June 30, 2010 but before July 1, 2011.
The bill repeals the statutory provisions which established this suspension, and permits taxpayers to file an amended tax return to claim the amount of any tax credit which (1) was not permitted to be applied against that taxpayer's liability for tax in State fiscal year 2011 as a result of the suspension and (2) was not subsequently applied against the taxpayer's liability for tax following the termination of the suspension. The bill specifies that amended returns filed to claim a credit or a refund must be filed with the Director of the Division of Taxation in the Department of the Treasury after the effective date of the bill but before the last day of the second full year following the date the bill is effective, and must be made on forms and in a manner prescribed by the director. The bill specifies that amended returns filed within that frame of time may be eligible for interest on any overpayment determined to be due.
The temporary suspension imposed on the application of tax credits by P.L.2010, c.20 has negatively affected taxpayers previously awarded tax credits or tax credit transfer certificates for expenses incurred in connection with film and digital media content projects, and damaged the State's image as a competitive market for the film and digital media industry. By repealing the suspension and providing affected taxpayers with a means to seek relief, this bill begins to repair the State's image as a competitive place to do business.
