This bill introduces a new corporate transit fee for businesses in New Jersey with allocated taxable net income exceeding $10 million, applicable for privilege periods from January 1, 2024, to December 31, 2028. The fee is set at 2.5% of the allocated taxable net income and is in addition to the existing Corporation Business Tax. Notably, the bill specifies that no credits will be allowed against this new fee, except for certain payments related to installment and estimated payments. The revenues generated from this fee will be directed to the General Fund, with a portion earmarked for the operating expenses of the New Jersey Transit Corporation and to meet state matching requirements for federal funds for capital projects.

The bill also clarifies definitions related to taxable net income, combined groups, public utilities, S corporations, and taxpayers, ensuring that S corporations and public utilities are excluded from the definition of taxpayers subject to this new fee. The act is set to take effect immediately upon approval and will apply to the specified privilege periods starting in 2024.