This bill amends current law by repealing the $100,000 cap on the sales and use tax exemption for certain capital improvements made by businesses participating in the Urban Enterprise Zone (UEZ) program. Specifically, it removes the limitation on the retail sales of materials, supplies, and services used for erecting structures or buildings, or for improving, altering, or repairing the real property of a qualified business or its contractors. The amendment allows these businesses to benefit from the tax exemption without the previous cap, thereby encouraging more substantial investments in property improvements.

The bill is retroactive, applying to sales and uses on and after January 1, 2022, and aims to support qualified businesses by providing them with greater financial flexibility for their construction and renovation projects. By eliminating the cap, the legislation seeks to stimulate economic growth within the Urban Enterprise Zones, which are designed to promote business development and job creation in designated areas.

Statutes affected:
Introduced: 52:27H-79.1