Bill Text: NJ S1233 | 2022-2023 | Regular Session | Introduced


Bill Title: Provides corporation business tax credit to public utilities that develop qualified native pollinator habitat in their rights of way.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2022-02-03 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S1233 Detail]

Download: New_Jersey-2022-S1233-Introduced.html

SENATE, No. 1233

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED FEBRUARY 3, 2022

 


 

Sponsored by:

Senator  LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

 

 

 

 

SYNOPSIS

     Provides corporation business tax credit to public utilities that develop qualified native pollinator habitat in their rights of way.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act providing tax credits to public utilities that develop qualified native pollinator habitat in their rights of way and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  For privilege periods beginning on or after January 1 next following the effective date of P.L.     , c.     (C.         ) (pending before the Legislature as this bill), a taxpayer that is a public utility that develops qualified native pollinator habitat in its rights of way, and that meets the requirements of this section and the rules of regulations adopted pursuant thereto, shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to 50 percent of the reasonable cost expended for developing the qualified native pollinator habitat, up to $50,000. 

     b.    (1)  To qualify for the tax credit allowed pursuant to this section, the taxpayer shall apply for a certification from the secretary that certifies:  (a) that the area developed is qualified native pollinator habitat; (b) the amount of the tax credit; and (3) that the taxpayer has complied with the requirements of subsection d. of this section, if applicable.  The application shall include a description of the qualified native pollinator habitat, its precise locations, the cost for developing it, appropriate documentation of that cost, and any other information as determined relevant by the department.  Upon certification, the secretary shall submit a copy thereof to the taxpayer and the director.  When filing a tax return that includes a claim for a credit pursuant to this section, the taxpayer shall include a copy of the certification issued by the secretary.

     (2)   The department may approve an application and issue a certification to a taxpayer that has previously been allowed a tax credit pursuant to this section, but in no case shall a taxpayer be approved and certified for more than $50,000 in total tax credits.

     c.     The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the director.  The amount of the credit applied pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) shall not reduce a taxpayer's tax liability for a privilege period to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).  Any credit shall be valid in the privilege period in which the certification is approved.

     d.    For the purposes of this section, if the taxpayer does not own the right of way on which it plans to develop qualified native pollinator habitat, the taxpayer shall enter into an agreement with the owner of the right of way permitting the taxpayer to develop qualified native pollinator habitat in the right of way, and provide a copy of that agreement to the secretary with the application for the tax credit.

     e.     The secretary, in consultation with the director, shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to carry out the provisions of this section.

     f.     On or before January 31 of each year, the secretary shall submit a report to the Governor, the State Treasurer, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature, on the effectiveness of the tax credit developing qualified native pollinator habitat in the State. 

     g.    As used in this section:

     "Department" means the Department of Agriculture.

     "Public utility" means a public utility as defined in R.S.48:2-13 that distributes electricity or natural gas, or operates telephone lines.

     "Qualified native pollinator habitat" means an area of land developed as habitat beneficial for the feeding, nesting, and reproduction of native pollinators, such as bees, as determined by the department.  "Qualified native pollinator habitat" shall utilize plants that are native to New Jersey. 

     "Reasonable cost" means the cost of developing qualified native pollinator habitat, including, but not necessarily limited to, the cost of seeds, plants, and the instillation thereof, determined to be reasonable by the department.

     "Right of way" means right of way as defined in section 1 of P.L.1957, c.130 (C.48:3-17.2).

     "Secretary" means the Secretary of Agriculture. 

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would provide corporation business tax credits to public utilities that develop qualified native pollinator habitat in their rights of way. 

     Specifically, for privilege periods beginning on or after January 1 next following the effective date of this bill, a taxpayer that is a public utility that develops qualified native pollinator habitat in its rights of way, and that meets the requirements of the bill, would be allowed a credit against the corporation business tax in an amount equal to 50 percent of the reasonable cost expended for developing the qualified native pollinator habitat, up to $50,000.  For the purposes of this bill, qualified native pollinator habitat means an area of land developed as habitat beneficial for the feeding, nesting, and reproduction of native pollinators, such as bees, as determined by the Department of Agriculture.  Qualified native pollinator habitat must utilize plants that are native to New Jersey. 

     To qualify for the credit, a public utility would have to apply for a certification from the Secretary of Agriculture that certifies:  (1) that the area developed is qualified native pollinator habitat; (2) the amount of the tax credit; and (3) that the public utility has provided any applicable agreement between the public utility and the owner of the right of way permitting development of the qualified native pollinator habitat.  The application would include a description of the qualified native pollinator habitat, its precise locations, the cost for developing it, appropriate documentation of that cost, and any other information the Department of Agriculture determines relevant.  When filing a tax return that includes a claim for a credit pursuant to this bill, the public utility would have to include a copy of the certification issued by the Secretary of Agriculture.  

     Pollinators, such as bees, are extremely important to the State.  Approximately one-third of all crops grown depend on pollinators for reproduction.  Recently, however, the survival of many pollinators has been threatened by, among other things, habitat loss.  This bill would incentivize the planting of native pollinator habitat in public utility rights of way, which often provide large, open areas that are perfect for such habitat.

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