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Bill

A 5170

Requires State to purchase certain unused tax credits issued under New Jersey Economic Recovery Act of 2020.

2024-2025 Regular Session Introduced by Nilsa Cruz-Perez and 4 co-sponsors

New Jersey law requires the state to purchase unused tax credits from its 2020 Economic Recovery Act, spending public funds to retire these business incentive credits.

Approved P.L.2025, c.113.
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Bill Summary · A 5170

Legislative bill overview

Bill A 5170 requires New Jersey's state government to purchase unused tax credits that were issued under the 2020 Economic Recovery Act. The bill became law in July 2025 after passing both chambers of the legislature. This effectively allows the state to buy back tax credits from businesses that haven't used them.

Why is this important

Tax credits are valuable financial instruments—companies can use them to reduce their tax liability or, in some cases, sell them for cash. By purchasing unused credits, the state is spending public money to retire these credits early, which affects both the state budget and businesses that hold these credits. This decision reflects a policy choice about how to manage economic incentives and state finances.

Potential points of contention

  • Fiscal impact: The bill requires state expenditure to purchase credits, which removes that money from other state priorities and increases the budget burden during uncertain economic times
  • Fairness questions: Businesses that already used their credits or didn't receive them might question why the state is buying back credits for other companies, raising equity concerns
  • Effectiveness of original program: The need to buy back unused credits suggests the 2020 Economic Recovery Act may not have achieved its intended goals, raising questions about whether similar programs should be designed differently in the future

Compiled from official sources — confirm details with the bill’s official record.

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