NJ S877

Tax credits of 35% for insourcing expenses when relocating business units from outside the United States to New Jersey, and 25% for relocating from other U.S. states to New Jersey

Credits apply to both corporation business tax and gross income tax for privilege periods/taxable years from January 1, 2019 through December 31, 2023

Eligible insourcing expenses include costs of eliminating out-of-state/country business units and establishing replacement units in New Jersey, including employee moving costs, but exclude severance payments

Credits limited to 50% of tax liability and cannot reduce corporate tax below statutory minimum; unused credits may be carried forward for four years but must be used before January 1, 2025

Full-time employment in New Jersey must increase as a result of the relocation, and reducing New Jersey employees within five years triggers recapture of previously allowed credits