Governor Christie recently signed two bills into law that aim to improve NewJersey’s business climate by providing tax relief to all size businesses. S-2753 (now P.L. 2011, c.59) will change the corporate business tax formula from a three-factor formula to a single sales factor formula, as well as create a modified sales fraction formula for airlines.
S-2754 (now P.L. 2011, c.60) will permit taxpayers to net gains and losses from certain business-related categories of gross income and allow those losses to be carried forward for up to twenty years. Both of these items are critical reforms the business community has been requesting for years. The bills aim to provide targeted tax relief to improve the State’s business climate and spur economic growth.