Legislation sponsored by Senator Michael Testa that would spur beneficial advancements in transportation, manufacturing and clean energy was advanced today by the Senate Commerce Committee.
Legislation sponsored by Sen. Michael Testa that would spur research in transportation, manufacturing and clean energy was advanced by the Senate Commerce Committee. (Pixabay)
Testa’s bill, S-2707, would fuel innovation by increasing the tax credits available through an existing program supporting ground-breaking research.
“The research process is grueling, frustrating and extremely costly, but it is the necessary first step toward the development of the new methods, products and procedures that can change the way we live and work in the years to come,” said Testa (R-1). “Without research, nothing changes. A more robust tax credit will help incite work on the drawing boards and in the labs of where experts can pursue more efficient, faster, and better ways of doing things.”
Testa’s measure would increase both the research expenses tax credit for businesses in targeted industries and the basic research payment tax credit from 10 to 15 percent, and allows the credits to be refundable.
Under the bill, the New Jersey Economic Development Authority would be responsible for periodically identifying a list of targeted industries. The initial list required by the bill would include advanced transportation and logistics, manufacturing, aviation, autonomous vehicle and zero-emission vehicle research or development, clean energy, life sciences, hemp processing, information and high technology, finance and insurance, professional services, film and digital media, non-retail food and beverage businesses including food innovation, and other innovative industries that disrupt current technologies or business models.
“It is vital for New Jersey to keep pace with the rest of the world,” Testa noted. “Advancements that were unimaginable only a few years ago are now changing our everyday life. This bill represents a more concerted commitment to our future.”