N.J. Admin. Code § 8:32-6.1

Current through Register Vol. 56, No. 24, December 18, 2024

Section 8:32-6.1 - Corporation business tax credit for donor privilege period

(a) For privilege periods beginning on or after July 7, 2018, a taxpayer that is a donor to an approved drug donation program shall be allowed a credit against the tax imposed pursuant to N.J.S.A. 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. § 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 at N.J.S.A. 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 at N.J.S.A. 24:6M-1 et seq.; and

3. The redistributor, which processed the donated drug, complies with all recordkeeping requirements for non-saleable returns to a returns processor pursuant to 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 of Taxation. The amount of the credit applied pursuant to 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 at N.J.S.A. 54:10A-5.e. The amount of the credit allowable pursuant to 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 pursuant to the corporation business tax.

(c) The donor shall apply for the credit when filing their taxes, by utilizing Form 326 and attaching a copy of their receipt (see N.J.A.C. 8:32-4.1(p)). The taxpayer's use of the tax credit shall be limited pursuant to (a) or (b) above, as applicable.

N.J. Admin. Code § 8:32-6.1

Adopted by 56 N.J.R. 1793(a), effective 9/3/2024