New Jersey small businesses could claim credits for local advertising

Allow eligible small businesses to claim a credit against New Jersey corporation business tax for qualifying local advertising costs. The business must be based in New Jersey, independently owned and operated, and have fewer than 50 full-time-equivalent employees during the period. Costs may cover ads or sponsorships in qualifying local newspapers, or on local radio or television stations. Businesses must attach documentation required by the tax director to verify each expense. The credit cannot lower corporation business tax below the required minimum. Unused credit may carry forward for five following privilege periods, then expires. The credit would apply to corporation tax periods beginning on or after January 1, 2027. The 80% rate applies before January 1, 2028; the 50% rate applies from that date.

Allow eligible small businesses and their owners to claim a credit against New Jersey gross income tax for qualifying local advertising costs. The business must be based in New Jersey, independently owned and operated, and have fewer than 50 full-time-equivalent employees during the tax year. Costs may cover ads or sponsorships in qualifying local newspapers, or on local radio or television stations. Businesses must attach documentation required by the tax director to verify each expense. The credit cannot reduce a taxpayer's bill below zero. Unused credit may carry forward for five following tax years, then expires. Partnership and New Jersey S corporation credits are allocated to taxpayers according to their shares of income. The credit would apply to tax years beginning on or after January 1, 2027. The 80% rate applies before January 1, 2028; the 50% rate applies from that date.