Chamber Applauds NOL Extension Bill Signing

By enacting legislation that extends the net operating loss (NOL) carryover period from seven to 20 years, the Governor and members of the Legislature are taking an important step to revise our corporate business tax code so that New Jersey is positioned to come out of this economic recession in a better competitive position in terms of job creation.

Today, more than ever, accountants and chief financial officers will be scrutinizing their balance sheets and seeking opportunities elsewhere where it makes financial sense. We are pleased our leaders are reviewing past policies and amending them, if necessary, so that our companies have a better chance to succeed and grow over the long-term.

NOL provisions allow businesses to weather economic fluctuations by allowing additional time for investment, growth and expansion, which is particularly important for small businesses and new ventures. Extending the time period for net operating losses will help struggling businesses survive the downturn and retain jobs.

Now that the NOL bill has passed, we are looking forward to the passage of other measures that will reform our tax code and encourage companies to stay here in New Jersey, as well as create jobs. This includes repealing the “throw out” rule and Regular Place of Business requirements, and providing a single sales factor formula. These are all recommendations included in the Chamber’s Corporate Business Tax Reform Package presented to the Governor and members of the Legislature.

In the midst of this current crisis, when all sized businesses are struggling, today's action sends a positive message that our government leaders are serious about putting a plan in place that helps us through this economic crisis and positions us well during the next upturn.