Manufacturing reinvestment accounts would make it easier for small New Jersey manufacturers to invest in machinery, equipment and workforce development training so they can be a part of the resurgence of American manufacturing, the New Jersey Business & Industry Association (NJBIA) said today.
“NJBIA has been working closely with the bipartisan Legislative Manufacturing Caucus, and this bill supports our efforts to reclaim New Jersey’s status as a leader in manufacturing,” said Andrew Musick, NJBIA vice president for Taxation and Economic Development.
The accounts would be created under S-1143 (Singleton, D-7), which was released today by the Senate Economic Growth Committee. NJBIA supports the bill.
The measure would provide three levels of incentives: Initial contributions to the account would be deductible on company tax returns; taxes on interest and other revenue earned by the account would be deferred; and withdrawals would be taxed at half the corporate or gross income tax rate, provided they are used for qualified purposes.
“New Jersey is home to 10,552 manufacturing firms, many of which are small businesses, and they employ nearly 250,000 people,” Musick explained. “Supporting manufacturing makes sense, and we thank Senator Singleton for sponsoring this important piece of legislation.”
