Measure Would Allow Small Business Owners to Claim Up to $100,000 in Tax Credits
TRENTON – Senator Jim Whelan announced today he will introduce legislation to aid small businesses along the New Jersey shore in their rebuilding efforts in the aftermath of Hurricane Sandy by allowing business owners to claim a tax credit for repairs necessitated as a result of the storm.
“Small businesses are the backbone of New Jersey’s economy – providing New Jersey families with good jobs, and offering goods and services that our residents depend on – but many of these businesses along the Shore are reeling after the devastation caused by Hurricane Sandy,” said Senator Whelan, D-Atlantic. “Particularly during such a difficult economic period for the State, many business owners simply do not have the resources to rebuild. Through this legislation, we’re making a statement that rebuilding our Shore – and the businesses that are part and parcel with the Shore experience that so many New Jerseyans and visitors to our region grew up with – is the most important policy goal we can have as a state right now.”
The bill would allow Shore businesses to claim up to $100,000 in tax credits to cover uncompensated property losses associated with repairs resulting from Hurricane Sandy. Under the proposed bill, the tax credit would only cover costs not already covered by the business’s insurance providers or federal assistance programs, including FEMA. The tax credit would apply only to businesses with 20 or fewer full-time employees. The tax credit would be applied to the business’s corporate business tax (CBT) obligation or to the business owner’s income tax obligation and the amount unused this tax year would be able to be carried forward to future years’ tax obligations, but could not be applied retroactively.
“Every day that a small business remains closed, it comes that much closer to never reopening,” said Senator Whelan. “That’s because many of these businesses are operating on a razor-thin profit margin, and when they’re not open, they’re losing out on revenues they so desperately need to get back on their feet. This bill would help them recover from the destruction caused by Hurricane Sandy by reducing, or outright eliminating, their tax liability to give them the financial flexibility to rebuild and restore their places of business.”
The bill will be formally introduced at the Senate’s next quorum call.