New Jersey: Corporation business tax law changes | KPMG United States
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New Jersey: Corporation business tax law changes enacted

New Jersey: Corporation business tax law changes

In New Jersey, tax legislation enacted in July 2018 includes changes to the “corporation business tax” laws.


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Among these new tax law measures are the following:

  • A temporary “surtax” on corporation business taxpayers at a rate of 2.5% (in general for 2018 and 2019) and at a rate of 1.5% (in general for 2020 and 2021), with the surtax expiring beginning in 2022
  • Measures addressing the New Jersey tax treatment in response to certain federal tax law changes enacted in December 2017, including provisions relating to the dividends-received deduction, revised “treaty exception” to addback rules, interest deduction limitation, and IRC section 199A deduction
  • Market-based sourcing for service receipts
  • Rules for mandatory unitary combined reporting
  • Penalty relief measures for underpayments of tax relating to retroactive tax changes
  • Conformity to federal tax law for research credit purposes


Read a July 2018 report [PDF 93 KB] prepared by KPMG LLP

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