Legislation Would Provide Tax Credit for Small Businesses Who Had to Rebuild or Repair Due to Superstorm
TRENTON – Legislation sponsored by Senator Jim Whelan that would provide small businesses with a tax credit to offset money spent on rebuilding or repairing due to Hurricane Sandy was approved today by the Senate Economic Growth Committee.
“Hurricane Sandy crippled the JerseyShore, leaving business owners with untold amounts of damage and destruction and an estimated $30 billion in economic losses throughout the state,” said Senator Whelan, D-Atlantic. “In order to reopen, many small businesses had to reach into their own pockets to rebuild and repair their properties. And unfortunately, some Shore businesses had to shutter their doors because they did not have the resources available to repair after the storm. With this legislation, we will be providing relief to those businesses that were saddled with significant out-of-pocket costs. This will also provide assistance to those who have not yet been able to reopen.”
The bill, S-180, would provide Jersey Shore small businesses whose properties were destroyed, damaged or lost as a result of Hurricane Sandy with a corporation business tax credit or a gross income tax credit to offset reinvestment in the property in the aftermath of the storm. Under the bill, businesses could receive a tax credit on unreimbursed business property loss, the amount of reinvestment in the business excluding any reimbursements from insurance, FEMA or the state, or up to $100,000. The tax break would cover unreimbursed investments from Hurricane Sandy that have been made or will be made before the bill’s two-year sunset.
The bill was approved by the Committee with a vote of 5-0. It now heads to the Senate Budget and Appropriations Committee.