NJ S1374

Taxpayers who demolish an abandoned commercial building (at least 100,000 square feet) in New Jersey and construct a new commercial building in the same location qualify for tax credits against both the corporation business tax and gross income tax

Credits equal the lesser of 25% of total demolition and construction costs or $500,000 per project, with unused credits carried forward for up to seven years

Total program cap of $5 million cumulative for all tax credits awarded under both the corporation business tax and gross income tax provisions

Taxpayers must apply to the Division of Taxation for certification after completing demolition and construction, providing receipts demonstrating project costs

The Division of Taxation must submit a report to the Governor, State Treasurer, and Legislature within one year after the tax credit program expires, evaluating its effectiveness in encouraging replacement of abandoned commercial buildings