NJBIA Statement on CBT Cleanup Bill Signed into Law

NJBIA Vice President of Government Affairs Christopher Emigholz issued the following statement regarding the signing of bill A-4809/S-3007 into law today by Gov. Phil Murphy, which revises, clarifies, corrects and simplifies various aspects of the Corporation Business Tax (CBT).

“NJBIA thanks Governor Murphy, the sponsors of the bill, and members of the Legislature who supported it.

“While it is of course concerning for our competitiveness that New Jersey’s corporate business tax rate is set to become the highest in the nation on Jan. 1, the technical adjustments made with this law will provide some important benefits – including a potentially great reduction in CBT paperwork for larger corporations.

“It permanently extends the state CBT deadline a month after the federal due date. And since some CBT calculations are based on federal tax liability, making that month delay permanent will be helpful for both the taxpayer and the Division of Taxation.

“The bill answers some outstanding questions in terms of complying with New Jersey’s combined reporting/unitary changes from 2018. It clarifies that the AMA (alternative minimum assessment) tax is only on the combined/unitary taxable member, and not on each individual part of that group.

“Further, it clarifies the treatment of net operating losses (NOLs), which is important for struggling companies and for the innovation economy we want New Jersey to have.”