A great reminder for companies both large and small with operations in New Jersey: valuable tax credits are available that can be applied to directly reduce taxable income, or can actually be sold for cash in the absence of taxable income. Given some uncertainty with the program subsequent to its expiration next year, companies may want to consider utilization of these credits sooner rather than later.
New Jersey’s corporate tax breaks, designed to lure and keep companies in one of the country’s highest-taxed states, are sold for cash more often than they are used to lower tax bills. Like many other states, New Jersey allows companies to sell tax credits they receive in exchange for building new offices, hiring more workers or moving to the state. Most take advantage of this, with state records showing that companies—including Panasonic and Prudential Financial Inc. —have sold or transferred about 78% of the $595 million in state tax credits doled out since 2011.