24:6M-8 Tax credit for donor.
440 words·~2 min read·
/nj/title-24/chapter-6m/24-6m-8·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
8. a. For privilege periods beginning on or after the effective date of P.L.2017, c.254 (C.24:6M-1 et seq.), a taxpayer that is a donor shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the sum of: the cost to the taxpayer of the over-the-counter drugs, prescription drugs, and administration supplies as determined pursuant to 26 U.S.C. s.170(e)(3)(A); and the verifiable cost to the taxpayer to make the donation of the over-the-counter drugs, prescription drugs, and administration supplies to a redistributor during the taxable year in accordance with a drug donation program established pursuant to the provisions of P.L.2017, c.254 (C.24:6M-1 et seq.), provided that:
(1)the donor paid for, owned, or was responsible for the over-the-counter drugs, prescription drugs, or administration supplies;
(2)the over-the-counter drugs, prescription drugs, or administration supplies were donated to, and accepted by, a redistributor in accordance with the provisions of P.L.2017, c.254 (C.24:6M-1 et seq.); and
(3)the redistributor, which processed the donated drug, complies with all recordkeeping requirements for nonsaleable returns to a returns processor under federal law.
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director. The amount of the credit applied under this section against the corporation business tax liability of the taxpayer for a privilege period, together with any other credits allowed by law, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection
(e)of section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the credit allowable under this section which cannot be used to reduce the taxpayer's corporation business tax liability for the privilege period due to the limitations of this section may be carried forward and applied to the earliest available use within the 20 privilege periods immediately following the privilege period for which the credit is allowed. The costs of the over-the-counter drugs, prescription drugs, and administration supplies, and the costs to make the donation to a redistributor, that are included in the calculation of the credit allowed pursuant to this section shall not be allowed as an amount calculated or claimed pursuant to any other deduction or credit allowed under the corporation business tax.
c. As used in this section: "donor," "over-the-counter drugs," "prescription drugs," "administration supplies," "redistributor," "returns processor," and "drug donation program" shall mean the same as those terms are defined by section 2 of P.L.2017, c.254 (C.24:6M-2).
L.2017, c.254, s.8.