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Manufacturing Tax Credit Programs
Manufacturing Equipment & Employment Investment Tax Credit Investments in qualified manufacturing equipment made in tax years beginning on or after January 1, 1994, may be eligible for the Manufacturing Equipment and Employment Investment Tax Credit. Such investment has the benefit of allowing a tax credit computation for the tax year in which the investment was made as well as each of the following two tax years. The tax credit computation for the first year is based on the cost of the qualified manufacturing equipment placed in service in New Jersey during that tax year. The computations for the two following tax years are based on the average increase in New Jersey residents employed in New Jersey subject to a limitation based on the cost of the investment made in the first year. The manufacturing equipment portion is limited to 2% (or 4%, if applicable) of the investment credit base of qualified equipment placed in service in the tax year, up to a maximum allowed credit for the tax year of $1,000,000. The employment investment portion is valid for each of the two tax years succeeding the tax year for which the manufacturing equipment credit is allowed, but is limited to 3% of the investment credit base, not to exceed a maximum allowable amount for each of the two tax years of $1,000 multiplied by the increase in the average number of qualified employees. To claim this credit, the taxpayer must complete Form 305 [pdf 143 k] and attach it to the tax return. Energy Sales Tax Exemption Program The New Jersey Economic Development Authority has a business assistance program, which provides certain Salem County manufacturers with an important new benefit. Under this program, manufacturers in Salem County with 50 or more employees, at least 50 percent of whom are directly involved in manufacturing process, are eligible for a sales tax exemption for electric and gas purchases. Energy Sales Tax Exemption Program for Salem County Application
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