NJ S877

Creates temporary tax credits for businesses that relocate ("insource") operations to New Jersey, offering 35% of insourcing expenses for relocations from outside the United States and 25% for relocations from other U.S. states.

Applies to both corporation business tax and gross income tax for privilege periods/taxable years from January 1, 2019 through December 31, 2023, with unused credits carried forward up to four years but must be used before January 1, 2025.

Requires businesses to follow a written relocation plan and demonstrate an increase in full-time New Jersey employees (at least 35 hours per week) compared to when insourcing expenses began.

Imposes credit recapture provisions if the taxpayer reduces full-time employees at New Jersey locations during the five years following the credit year.

Caps total credits at 50% of tax liability for any given year and prohibits claiming the same expenses under multiple tax credits.