New Jersey § 52:27bbb-55

§ 52:27bbb-55.

a. A taxpayer engaged in the conduct of business within a qualified municipality and

who is not receiving a benefit under the “New Jersey Urban Enterprise Zones Act,”

P.L.1983, c. 303 ( C.52:27H-60 et seq. ), may apply to receive a tax credit against the amount of tax otherwise imposed under

the “Corporation Business Tax Act (1945),” P.L.1945, c. 162 ( C.54:10A-1 et seq. ), or the tax imposed on insurers pursuant to P.L.1945, c. 132 ( C.54:18A-1 et seq. ), section 1 of P.L.1950, c. 231 ( C.17:32-15 ) and N.J.S.17B:23-5 , equal to: $2,500 for each new full-time position at that location in credit year

one and $1,250 for each new full-time position at that location in credit year two. b. (1) The credit pursuant to subsection a. of this section for credit year one shall

be allowed for the privilege period or reporting period in which or with which credit year one ends; the credit pursuant to subsection a.

of this section for credit year two shall be allowed for the privilege period or reporting period in which or with which credit year two ends. (2) An unused credit may be carried forward, if necessary, for use in the privilege periods or reporting periods following the privilege period or reporting period for which the credit is allowed. (3) The order of priority of the application of the credit allowed under this section

and any other credits allowed by law shall be as prescribed by the Director of the

Division of Taxation. The amount of the credit applied under this section against the tax imposed pursuant

to section 5 of P.L.1945, c. 162 ( C.54:10A-5 ) for a privilege period, together with any other credits allowed by law, shall not

exceed 50% of the tax liability otherwise due and shall not reduce the tax liability

to an amount less than the statutory minimum provided in subsection (e) of section

5 of P.L.1945, c. 162. c. (1) Notwithstanding the provisions of subsection b. of this section to the contrary,

the credit allowed for credit year one may be refundable at the close of the privilege

period or reporting period in which or with which credit year two ends, pursuant to the requirements and limitations

of this subsection. (2) That amount of the credit received for credit year one remaining, if any, after

the liabilities for the privilege period or reporting period in which or with which credit year two ends and for any prior period have been satisfied, multiplied by the sustained effort ratio, shall be an

overpayment for the purposes of section R.S.54:49-15 for the period in which or with which credit year two ends; that amount of the credit received

for credit year one remaining, if any, that is not an overpayment pursuant to this

paragraph may be carried forward pursuant to subsection b. of this section. d. The burden of proof shall be on the taxpayer to establish by clear and convincing

evidence that the taxpayer is entitled to the credits or refund allowed pursuant to

this section. The director shall by regulation establish criteria for the determination of when

new or expanded operations have begun at a location. No taxpayer shall be allowed more than a single 24-month continuous period in which

credits shall be allowed for activity at a location within a qualified municipality

pursuant to P.L.2002, c. 43 ( C.52:27BBB-1 et al.). e. For the purposes of this section: “ Credit year one ” means the first twelve calendar months following initial or expanded operations

at a location within a qualified municipality pursuant to P.L.2002, c. 43 ( C.52:27BBB-1 et al.). “ Credit year two ” means the twelve calendar months following credit year one. “Employee of the taxpayer” does not include an individual with an ownership interest

in the business, that individual's spouse or dependants, or that individual's ancestors

or descendants. “ Full time position ” means a position filled by an employee of the taxpayer for at least 140 hours per

month on a permanent basis, which does not include employment that is temporary or

seasonal. “ New full time position ” means a position that did not exist prior to credit year one. New full time positions shall be measured by the increase, from the twelve-month

period preceding credit year one to the measured credit year, in the average number

of full-time positions and full-time position equivalents employed by the taxpayer

at the location within a qualified municipality pursuant to P.L.2002, c. 43 ( C.52:27BBB-1 et al.). The hours of employees filling part-time positions shall be aggregated to determine

the number of full-time position equivalents. “ Part-time position ” means a position filled by an employee of the taxpayer for at least 20 hours per

week for at least three months during the credit year. “ Sustained effort ratio ” means the proportion that the credit year two new full-time positions bears to the

credit year one new full-time positions, not to exceed one.