Legislation Would Provide Tax Credit for Small Businesses Who Had to Rebuild or Repair Due to Superstorm
TRENTON – Legislation sponsored by Senator Jim Whelan and Senator Joseph Kyrillos that would provide small businesses in a shore municipality with a tax credit to offset money spent on rebuilding or repairing due to Hurricane Sandy was approved today by the Senate.
“Hurricane Sandy crippled the Jersey Shore, 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). “Many small businesses had to reach into their own pockets to rebuild and repair their properties, while others had to shutter their doors because they did not have the resources available to repair after the storm. This legislation will provide much-needed assistance to businesses that have struggled and to those that 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 any new reinvestment in the property. The credit could be used on investments initiated within two years following enactment of the bill.
“Thousands of New Jersey families and employers are still suffering the wait for aid to return to normalcy,” said Senator Kyrillos (R-Monmouth). “With this third and pivotal summer-season upon us, we must immediately enact this creative solution to provide these residents and taxpayers with the financial assistance they need to finally return home and re-open their doors to hire and attract tourists who are vital to our recovery.”
Under the bill, the amount of the tax credit businesses could receive could not exceed the least of the 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 since the effective date of the bill or will be made before the bill’s two-year sunset.
For the purpose of this bill, shore municipality is defined as a municipality bordering on the Atlantic Ocean or the Delaware Bay.
The bill was approved by the Senate with a vote of 39-0. It now heads to the Assembly for consideration.