DALLAS, March 21, 2017 /PRNewswire/ — On March 15, 2017, the New Jersey Tax Division published a technical bulletin, TB-80, that attempts to clarify the types of state taxes that should and should not be added back to determine a corporation’s taxable income. Under N.J.S.A. 54:10A-4(k)(2)(C), the following taxes must be added back to determine taxable income: “[T]axes paid or accrued to the United States, a possession or territory of the United States, a state, a political subdivision thereof, or the District of Columbia, or to any foreign country, state, province, territory or subdivision thereof, on or measured by profits or income, or business presence or business activity, or the tax imposed by this act…”

The bulletin cites PPL Electric Utilities Corporation v. Director, 28 N.J. Tax 128 (Tax Ct. 2014), and Duke Energy Corporation v. Director, 28 N.J. Tax 226 (Tax Ct. 2014). PPL involves taxes based on the amount of electricity sold and is not required to be added back to taxable income. Duke Energy discusses taxes based on gross receipts and gross sales, which must be added back to determine taxable income. 

The bulletin goes on to list as examples specific state taxes required and not required to be added back. The gist of the bulletin is to require taxes that in any way are measured by receipts to be added back to taxable income. This bulletin is timely, as corporations compute their 2016 New Jersey state income taxes. 

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan’s multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world’s most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.


Mark L. Nachbar

Mary Bernard


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/new-jersey-issues-technical-bulletin-discussing-the-addback-related-to-other-states-taxes-300427145.html