The Christie administration says its package of proposed tax cuts will cost New Jerseyans $199.2 million in fiscal year 2012, rising to $690.3 billion by fiscal year 2016.
The proposals include $70.2 million in corporate business tax cuts, including an increase in the research and development credit to 100 percent, up from the current 50 percent, and a reduction in the minimum tax on “S” corporations by 25 percent.
The Transitional Energy Facility Assessment, which was a temporary tax on corporations during energy deregulation, will be phased out over the next three years, at a cost of $62 million in 2012, $245 million in 2016.
The administration is recommending the exemption threshold for the estate tax be raised from $675,000 to $1 million, since many middle class families have that value in their homes alone. The administration estimates this will cost $11.5 million in 2012 and rise to $23 million in fiscal year 2016.
Another program that’s slated for an increase is the Technology Business Tax Certificate Transfer Program, from $30 million to $60 million. The program is aimed at economic development of the high-tech and biotechnology sectors. This will cost an additional $30 million each year.