New Jersey has one of the lowest corporate income tax structures in the Northeast, as well as one of the lowest personal income tax rates. Workers’ compensation costs have been reduced by 30% since 1996, resulting in a premium savings of more than $500 million. The corporate tax structure is reviewed periodically to identify new tax-reduction opportunities.
 

• No net worth tax
• No business personal property tax
• No noncommercial or occupancy tax
• No retail gross receipts tax
• No sales taxes on tangible personal property used in
  research and development (R&D)

An R&D tax credit of 10% of excess of qualified research expense over a base amount, plus 10% of basic research payments.
 

The State of New Jersey, through its various departments and agencies, offers a variety of tax credits for new or expanding businesses that are directly related to job creation. These credits can be applied against the corporation’s business tax liability.
 

Investments in qualified manufacturing equipment may be eligible for this tax credit. It allows a tax credit computation for the tax year in which the investment was made, as well as in each of the following two years.
 

New Jersey “S” corporations are provided a reduced corporation tax rate. The law defines the amount of minimum tax imposed on domestic and foreign corporations, determination of net income, and the legal requirements to become an “S” corporation.
 

For the purpose of state taxation, the New Jersey Limited Liability Company Act permits a limited liability company formed under the act to be classified in the same manner as it elects to be classified for federal income tax purposes.