Oroho bill heads to governor

TRENTON — Legislation sponsored by Senator Steve Oroho to allow insurance companies that were due to receive grants under the state’s Business employment Incentive Program to receive refunds for their unused tax credits was passed by the New Jersey Assembly and is headed to the Governor’s desk.
“These businesses signed agreements with the state under BEIP to move or expand here with the understanding that they would receive those grants,” Oroho said. “We’ve already passed legislation that allows them to convert their grants into tax credits, but this gives insurance companies the same opportunities that other businesses have to get a refund on those credits.”
Earlier this year, Senator Oroho’s bill was signed into to law to allow a business that was due to receive a grant under BEIP to direct the New Jersey Economic Development Authority to convert the grant to a refundable tax credit against its corporate, gross income, or insurance premium tax liability. The bill allowed a business that does not pay corporate business taxes to apply to the authority for a tax credit transfer certificate that could be sold to another business.
The law currently allows businesses that pay the corporate business tax can get refunds if the tax credit exceeds their tax liability. Businesses that pay the insurance premium tax have not yet been extended that same benefit.
Under the bill, the unused portion of a tax credit to a business that pays the insurance premiums tax will be treated as an overpayment of tax and refunded to the business as long as they have no other outstanding tax liabilities.
“Insurance companies pay a different kind of tax so they have different needs than other businesses,” Senator Oroho said. “Combined with our previous legislation, this will help us keep our promises and demonstrate that we are committed to working with businesses to create more opportunities for growth across the state and help keep insurance premiums lower for customers.”