Repeals Cap on Sales Tax Exemption for Capital Improvements
Legislation sponsored by Senator Michael Testa that would encourage business owners to invest in capital improvements on their facilities located in Urban Enterprise Zones was approved by the Senate today.
Legislation sponsored by Sen. Michael Testa that would encourage business owners to invest in capital improvements on their facilities located in Urban Enterprise Zones was approved by the Senate. (Pixabay)
Testa’s bill, S-2080, would repeal the current $100,000 cap on sales tax for materials, supplies and services for building, improving, or repairing the real property of qualified businesses.
“The sales tax exemption enacted last August is a powerful incentive for rehabbing buildings and refreshing tired commercial areas, but businesses that embarked on projects did not anticipate the cap,” said Testa (R-1). “The impact of rampant inflation and supply chain issues have driven costs up significantly, and the cap is now causing some to reconsider plans or size back projects.
“Communities with UEZ’s and the businesses in the program will be better served with the repeal of the cap,” Testa continued. “Real property improvements are crucial to bringing shoppers, diners and customers back to once-vital business districts.”
Under Testa’s bill, the repeal of the cap would be retroactive to January 1 of this year.