Bipartisan legislation sponsored by Senator Joseph Kyrillos that would provide small businesses in a shore municipality with a tax credit to offset money spent on rebuilding or repairing due to Hurricane Sandy was approved by the Senate.
“Thousands of New Jersey families and employers are still suffering the wait for aid to return to normalcy,” said Kyrillos (R-Monmouth). “With this third and pivotal summer-season upon us, we must immediately enact this creative solution to provide these residents and taxpayers with the financial assistance they need to finally return home and re-open their doors to hire and attract tourists who are vital to our recovery.”
The bill, S-180, also sponsored by Senate Democrat Jim Whelan, would provide Jersey Shore small businesses whose properties were destroyed, damaged or lost as a result of Hurricane Sandy with a corporation business tax credit or a gross income tax credit to offset reinvestment in the property in the aftermath of the storm. The credit could be used within two years following the effective date of the bill.
Under the bill, the amount of the tax credit businesses could receive could not exceed the least of the unreimbursed business property loss, the amount of reinvestment in the business excluding any reimbursements from insurance, FEMA or the state, or up to $100,000. The tax break would cover unreimbursed investments from Hurricane Sandy that have been made or will be made before the bill’s two-year sunset.
For the purpose of this bill, shore municipality is defined as a municipality bordering on the Atlantic Ocean or the Delaware Bay.