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New Jobs Investment Tax Credit, Notice of Inflation Adjustments


The New Jobs Investment Tax Credit Act, N.J.S.A. 54:10A-5.4 et seq., contains provisions mandating certain adjustments in thresholds in the definition of small and mid-size business and in the required median compensation of new employees. These adjustments relate to N.J.A.C. 18:7-3.22 and its provisions including N.J.A.C. 18:7-3.22(a)1. The definition of "small or mid-size business taxpayer" at N.J.S.A. 54:10A-5.5 provides that the Director shall prescribe the amount of annual payroll and annual gross receipts which shall apply each year by increasing each statutory amount by an annual inflation adjustment factor to be rounded to the next lowest multiple of $ 50.00.

Similarly, under N.J.S.A. 54:10A-5.6a and e, the median compensation of all new jobs included in the taxpayer's determination of the new jobs factor is adjusted by an annual inflation adjustment factor, to be rounded to the next lowest multiple of $ 50.00.

The adjustment specified in the legislation is based upon the Consumer Price Index for September of the prior year. The Bureau of Labor Statistics officially releases this number in mid October. This is now available for September 2008.

The adjustment specified in the legislation is based upon the Consumer Price Index for September of the prior year. The Bureau of Labor Statistics officially releases this number in mid October. This is now available for September 2009.

Small or Mid-Size Business

Tax Years
Beginning in:
Payroll
Receipts
Median
Compensation
1994 $2,050,300 $6,150,950 $27,650
1995 $2,112,100 $6,336,400 $28,500
1996 $2,165,300 $6,496,000 $29,200
1997 $2,230,050 $6,690,150 $30,100
1998 $2,276,850 $6,828,150 $30,700
1999 $2,304,150 $6,910,050 $31,050
2000 $2,368,650 $7,103,500 $31,900
2001 $2,450,600 $7,349,300 $33,000
2002 $5,000,000 $10,000,000 $33,800
2003 $5,063,000 $10,126,000 $34,200
2004 $5,181,450 $10,326,900 $35,000
2005 $5,307,400 $10,614,800 $35,850
2006 $5,582,200 $11,164,400 $37,700
2007 $5,679,550 $11,359,100 $38,350
2008 $5,836,700 $11,673,400 $39,400
2009 $6,153,000 $12,306,050 $41,500
2010 $6,049,550 $12,099,150 $40,800
2011 $6,134,950 $12,269,950 $41,350

Last Updated: Wednesday, 06/15/11



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