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 first $100,000 of retail sales of materials, supplies, and services used for erecting, improving, altering, or repairing the real property of a qualified business or a contractor hired by such a business. The bill clarifies that receipts from these sales are exempt from the taxes imposed under the "Sales and Use Tax Act," regardless of the previous cap.

The legislation is retroactive, applying to sales and uses on and after January 1, 2022, and aims to support qualified businesses by allowing them to benefit from the full extent of the sales tax exemption without the previous financial limit. This change is intended to encourage investment in capital improvements within the designated Urban Enterprise Zones, thereby promoting economic growth and development in those areas.

Statutes affected:
Introduced: 52:27H-79.1