Bill Text: NJ S3177 | 2014-2015 | Regular Session | Introduced
Bill Title: Transit Ridership Innovation and Participation Act; provides income tax credits for employer-provided public transportation benefits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-10-19 - Introduced in the Senate, Referred to Senate Transportation Committee [S3177 Detail]
Download: New_Jersey-2014-S3177-Introduced.html
Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Transit Ridership Innovation and Participation Act; provides income tax credits for employer-provided public transportation benefits.
CURRENT VERSION OF TEXT
As introduced.
An Act providing Safe, Affordable, Viable, and Eco-friendly Employer Tax Credits under the corporation business tax and gross income tax for employer-provided public transportation benefits, supplementing P.L.1945, c.162 and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Transit Ridership Innovation and Participation Act" or the "TRIP Act".
2. a. (1) A taxpayer shall be allowed a "Transit Ridership Innovation and Participation Act" Safe, Affordable, Viable, Eco-friendly Employer Tax Credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the value of 15 percent of the qualified employer-provided public transportation benefits paid for the privilege period.
(2) The amount of the credit allowed pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the privilege period shall not exceed $150 per employee, 50% of the tax liability otherwise due, and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5). Unused credit resulting from the limitations of this paragraph may be carried forward, if necessary, for use in the twenty privilege periods following the privilege period for which the credit is allowed.
(3) The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the director.
(4) A taxpayer shall not be granted a credit pursuant to this section for qualified employer-provided public transportation benefits included in the calculation of a State deduction, another State credit, or State grant.
b. As used in this section:
"Qualified employer-provided public transportation benefit" means a qualified transportation fringe benefit associated with the in-State use of mass transit facilities through a public transportation transit pass, as defined for purposes of section 132 of the federal Internal Revenue Code (26 U.S.C. s.132).
3. a. (1) A taxpayer shall be allowed a "Transit Ridership Innovation and Participation Act" Safe, Affordable, Viable, Eco-friendly Employer Tax Credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to the value of 15 percent of the qualified employer-provided public transportation benefits paid for the taxable year.
(2) The amount of the credit allowed pursuant to this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for the taxable year shall not exceed $150 per employee and 50% of the tax liability otherwise due. Unused credit resulting from the limitations of this paragraph may be carried forward, if necessary, for use in the twenty taxable years following the taxable year for which the credit is allowed.
(3) The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year shall be as prescribed by the director.
(4) A taxpayer shall not be granted a credit pursuant to this section for qualified employer-provided public transportation benefits included in the calculation of a State deduction, another State credit, or State grant.
(5) (a) A business entity treated as a partnership for "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., purposes shall not be allowed a credit directly pursuant to this section, but a taxpayer partner shall be allowed the amount of a partnership's credit associated with the qualified employer-provided public transportation benefit costs allocated to the taxpayer as partnership expenses.
(b) A New Jersey S corporation shall not be allowed a credit directly pursuant to this section, but a taxpayer shareholder shall be allowed the amount of a New Jersey S corporation's credit associated with the qualified employer-provided public transportation benefit costs allocated to the taxpayer as pro rata share of New Jersey S corporation expenses.
b. As used in this section:
"Qualified employer-provided public transportation benefit" means a qualified transportation fringe benefit associated with the in-State use of mass transit facilities through a public transportation transit pass, as defined for purposes of section 132 of the federal Internal Revenue Code (26 U.S.C. s.132).
4. This act shall take effect immediately and apply to privilege periods and taxable years beginning on or after the date of enactment.
STATEMENT
Entitled the Transit Ridership Innovation and Participation Act, this bill provides Safe, Affordable, Viable, Eco-friendly Employer Tax Credits (TRIP SAVE ETC) for employer-provided public transportation benefits under the corporation business tax and gross income tax. The purpose of this bill is to make it easier for employers to support commuting employees' ridership of public mass transit.
The bill creates 15 percent tax credits under the corporation business tax and gross income tax for employers that provide employees transit passes for the use of in-State mass public transportation. For purposes of the credit, a transit pass means any pass, token, farecard, voucher, or similar item entitling an employee to use public mass transportation. The credit is capped at $150 per employee and 50 percent of an employer taxpayer's liability. For corporation business taxpayers the credit is also capped to prevent liability from falling under the statutory minimum. Unused capped credit may be carried forward for first use for 20 tax years. Employer-provided benefits generating credit may not be used duplicatively for other tax benefits or grants.
The bill is scheduled to apply to tax years beginning on or after the date of enactment.
