STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
Co-Sponsored by:
Senator Diegnan
SYNOPSIS
Establishes tax credits and financial grant related to construction and operation of advanced nuclear energy facilities.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing tax credits for advanced nuclear energy facilities and supplementing and amending various sections of statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. A taxpayer that is a manufacturer of equipment and components for advanced nuclear facilities licensed by the United States Nuclear Regulatory Commission shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 15 percent of the amount paid during the privilege period for:
(1) new manufacturing equipment installed at a new or existing manufacturing facility located within the State; and
(2) the acquisition, construction, reconstruction, installation, or erection of improvements or additions that result in the renovation, modernization, or expansion of a manufacturing facility located within the State.
b. If a taxpayer relocates its business operations to this State from another state within six months prior to the taxpayers initial application for the credit, the amount of the credit allowed pursuant to this section shall increase to 25 percent of the amount paid for each of the first three privilege periods for which the taxpayer is eligible to receive the credit. A taxpayer that qualifies for an increased credit pursuant to this subsection shall not be eligible for an increased credit pursuant to subsection c. of this section.
c. If a taxpayer is certified by the State as a "minority business" or a "women's business" pursuant to P.L.1986, c.195 (C.52:27H-21.17 et seq.) or qualifies as a "veteran-owned business" pursuant to P.L.2011, c.147 (C.52:32-50 et seq.), the amount of the credit allowed pursuant to this section shall increase to 25 percent of the amount paid during the privilege period. A taxpayer that qualifies for an increased credit pursuant to this subsection shall not be eligible for an increased credit pursuant to subsection b. of this section.
d. A credit shall not be allowed under P.L.1993, c.170 (C.54:10A-5.4 et seq.), P.L.1993, c.171 (C.54:10A-5.16 et al.), P.L.1993, c.175 (C.54:10A-5.24), or P.L.2001, c.321 (C.54:10A-5.31 et seq.) for expenditures for which a credit is allowed pursuant to this section.
e. The order of the application of the credits allowed under this section and any other credits allowed by law shall be based on the order in which completed applications are received by the Department of the Treasury. 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 against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not exceed 50 percent 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.54:10A-5).
f. An unused credit may be carried forward, if necessary, for use in the seven privilege periods following the privilege period for which the credit is allowed.
g. As used in this section:
"Manufacturing equipment" means machinery, apparatus, or equipment used in the production of equipment and components for advanced nuclear reactors licensed by the United States Nuclear Regulatory Commission.
"Manufacturing facility" means a business location, including, but not limited to, a factory, mill, or plant, at which more than 50 percent of the business personal property that is housed in the facility is manufacturing equipment.
2. (New section) a. The New Jersey Advanced Nuclear Energy Development Program is hereby established as a program under the jurisdiction of the New Jersey Economic Development Authority. The authority, in consultation with the Board of Public Utilities, shall administer the program to encourage the construction of advanced nuclear energy facilities in the State through the provision of incentive tax credit awards to developers for the construction of facilities and production of energy at those facilities upon completion. The board may approve the award of tax credits to a developer upon application to the authority.
b. A developer shall be eligible to receive an incentive tax credit for a facility project only if the developer demonstrates to the authority at the time of the application that:
(1) without the incentive tax credit, the facility project is not economically feasible;
(2) a project financing gap exists, or the authority determines that the facility project will generate a below market rate of return;
(3) the facility project is located at a current or decommissioned commercial nuclear generating facility in the State with a license that is or was previously issued by the United States Nuclear Regulatory Commission;
(4) except for demolition and site remediation activities, the developer has not commenced any construction at the site of the facility project prior to submitting an application, unless the authority determines that the facility project would not be completed otherwise or, in the event the facility project is to be undertaken in phases, the requested incentive tax credit is limited to only phases for which construction has not yet commenced;
(5) the facility project shall comply with minimum environmental and sustainability standards;
(6) the facility project shall comply with the authoritys affirmative action requirements, adopted pursuant to section 4 of P.L.1979, c.303 (C.34:1B-5.4);
(7) during the eligibility period, each worker employed to perform construction work or building services work at the facility project shall be paid not less than the prevailing wage rate for the workers craft or trade, as determined by the Commissioner of Labor and Workforce Development pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.) and P.L.2005, c.379 (C.34:11-56.58 et seq.);
(8) the developer intends to ini