New Jersey § 54a:4-22

§ 54a:4-22.

a. A taxpayer who in a privilege period purchases unit concrete products that utilize

carbon footprint-reducing technology, which may include permeable pavement, for use

in the construction or improvement of any residential dwelling or commercial building,

or in the replacement of an impervious surface with permeable pavement, in the State

shall be allowed a credit against the tax otherwise due for the taxable year under

the “New Jersey Gross Income Tax Act” N.J.S.54A:1-1 et seq. , in an amount equal to $2.00 per square foot of unit concrete products that utilize

carbon footprint-reducing technology, which may include permeable pavement, used in

the construction or improvement of any residential dwelling or commercial building,

or in the replacement of an impervious surface with permeable pavement. The credit shall be allowed in the taxable year in which the purchase is made. The total amount of the tax credit granted pursuant to this section shall not exceed

$3,000 for a residential property, and $30,000 for a commercial property in a single

taxable year. In order to qualify for the tax credit pursuant to this section, a person shall

purchase at least 100 square feet of unit concrete products that utilize carbon footprint-reducing

technology, which may include permeable pavement. b. 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 N.J.S.54A:1-1 et seq. for a taxable year, shall be as prescribed by the director. The amount of the credit applied under this section against the New Jersey gross

income tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable year, when taken together with any other payments, credits, deductions,

and adjustments allowed by law, shall not reduce a taxpayer's tax liability to an

amount less than zero. The amount of the tax credit otherwise allowable under this section which cannot

be applied for the taxable year due to the limitations of this section or other provisions

of N.J.S.54A:1-1 et seq. may be carried forward, if necessary, to the seven taxable years following the taxable

year for which the tax credit was allowed. c. (1) A business entity that is classified as a partnership for federal income tax

purposes shall not be allowed a credit under this section directly, but the amount

of credit of a taxpayer in respect of a distributive share of partnership income under

the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. , shall be determined by allocating to the taxpayer that proportion of the credit

acquired by the partnership that is equal to the taxpayer's share, whether or not

distributed, of the total distributive income or gain of the partnership for its taxable

year ending within or with the taxpayer's taxable year. (2) A New Jersey S Corporation shall not be allowed a credit under this section directly,

but the amount of the tax credit of a taxpayer in respect of a pro rata share of S

Corporation income, shall be determined by allocating to the taxpayer that proportion

of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer's

share, whether or not distributed, of the total pro rata share of S Corporation income

of the New Jersey S Corporation for its privilege period ending within or with the

taxpayer's taxable year. d. In order to be allowed a tax credit pursuant to subsection a. of this section,

a taxpayer who has purchased 100 or more square feet of unit concrete products certified

pursuant to section 10 of P.L.2021, c. 278 ( C.52:27D-141.17 ) shall attach receipts for the unit concrete products for which a tax credit is claimed

and an affidavit that the unit concrete products are or will be used exclusively in

New Jersey to any return the taxpayer is required to file under the “New Jersey Gross

Income Tax Act,” N.J.S.54A:1-1 et seq. A credit shall be initially allowed for the taxable year in which the unit concrete

products are purchased, and any unused portion thereof may be carried forward into

subsequent taxable years as provided in subsection b. of this section. e. No amount of cost included in calculation of the credit allowed under this section

shall be included in the costs for calculation of any other credit against the gross

income tax imposed pursuant to N.J.S.54A:1-1 et seq. f. The value of tax credits allowed by the director pursuant to this section and pursuant

to section 4 of P.L.2021, c. 278 ( C.54:10A-5.48 ) shall not exceed a cumulative total of $20,000,000 in each fiscal year to apply

against the tax imposed pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq. and the tax imposed pursuant to section 5 of P.L.1945, c. 162 ( C.54:10A-5 ). g. Notwithstanding the provisions of the “Administrative Procedure Act,” P.L.1968,

c. 410 ( C.52:14B-1 et seq. ), to the contrary, the director, in consultation with the Department of Environmental

Protection, shall adopt, immediately upon filing the proper notice with the Office

of Administrative Law, rules and regulations as are necessary to implement the provisions

of this section. These rules and regulations shall be in effect for a period not to exceed 365 days

after the date of the filing. The rules and regulations shall thereafter be amended, adopted, or readopted in

accordance with the requirements of the “Administrative Procedure Act,” P.L.1968,

c. 410 ( C.52:14B-1 et seq. ). The director may require the submission of any information the director deems necessary

to award a tax credit pursuant to this section. h. As used in this section: “ Director ” means the Director of the Division of Taxation in the Department of the Treasury. “ Permeable pavement ” means a concrete product that allows rainwater to penetrate the pavement and percolate

into the supporting soils and includes, but is not limited to, pervious concrete,

permeable interlocking concrete pavers, and concrete grid pavers. “ Unit concrete product ” means a concrete building product that is fabricated under controlled conditions

separate and remote from the intended point of use and is produced in a wet cast or

dry cast method in a factory setting and then transported to the location of intended

use for installation, including, but not limited to, all concrete pavers, whether

permeable or non-permeable, and concrete block. “Unit concrete product” shall not include ready mix concrete, sand, stone, gravel,

or bituminous concrete or asphalt. “ Unit concrete product that utilizes carbon footprint-reducing technology ” means a unit concrete product that is certified by the Department of Environmental

Protection, or any independent third party authorized by the department, pursuant

to section 10 of P.L.2021, c. 278 ( C.52:27D-141.17 ), as generating at least 50 percent less carbon dioxide emissions in the production

and utilization of the unit concrete product than conventional unit concrete products

made with ordinary Portland cement. Such products shall also conform with the relevant requirements of the “State Uniform

Construction Code Act,” P.L.1975, c. 217 ( C.52:27D-119 et seq. ) that incorporate by reference TMS 402/602 Building Code Requirements and Specification

for Masonry Structures.