An Act establishing a Statewide gun buyback program and supplementing various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. To reduce gun violence by removing firearms and other weapons from circulation, the Attorney General shall establish a Statewide gun buyback program allowing citizens of this State to voluntarily surrender firearms and weapons in their possession.

b. A person who surrenders a firearm or other weapon in a gun buyback program shall remain anonymous.

c. A reward shall be granted in a form and in an amount to be determined by the Attorney General for each surrendered firearm or weapon.

d. The Attorney General shall conduct three gun buyback programs each calendar year. One program shall be held in the northern, one shall be held in the central, and one shall be held in the southern regions of the State, and of those three programs at least one shall be held in an urban area with a high crime rate as determined by the most recent issue of the Uniform Crime Report published by the Department of Law and Public Safety.

e. The Statewide gun buyback program established in this section shall be funded by:

(1) forfeiture funds collected pursuant to N.J.S.2C:64-6, in an amount to be determined by the Attorney General;

(2) private donations collected pursuant to sections 2 and 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(3) any other monies that may be available to the Attorney General.

f. The Attorney General shall partner, to the greatest extent practicable, with local law enforcement agencies and community organizations in coordinating the Statewide gun buyback programs established pursuant to this section.

2. a. A taxpayer, upon the review and approval of the taxpayer's application therefor by the director and the Attorney General, shall be allowed a credit for the privilege period against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 25 percent of the fair market value of the taxpayer's qualified contribution to the gun buyback program during the privilege period.

b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the qualified contribution that is claimed as a credit pursuant to this section shall not be allowed as an amount calculated or claimed pursuant to any other deduction or credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5).

c. The amount of tax credits approved by the director and the Attorney General pursuant to this section and section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall not exceed a cumulative total of $2,000,000 in any calendar year to apply against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), and the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. If the cumulative amount of tax credits allowed to taxpayers in a calendar year exceeds the amount of credits available in that year, then taxpayers who have first applied for and have not been allowed a tax credit for that reason shall be allowed, in the order in which they have submitted an application for the allowance of a credit, the amount of tax credit on the first day of the next succeeding calendar year in which tax credits under this section and section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) are not in excess of the amount of credits available.

d. As used in this section:

"Director" means the Director of the Division of Taxation in the Department of the Treasury.

"Gun buyback program" means the Statewide gun buyback program established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

"Qualified contribution" means a nonrefundable contribution to the Attorney General of cash, merchandise, or other tangible or intangible assets that is capable of being valued, securely stored or maintained, and used, or converted into cash and used, as a reward to participants of the gun buyback program for the surrender of a firearm or other weapon.

e. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director, in consultation with the Attorney General, may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the director or the Attorney General determine to be necessary to implement the provisions of this section, which rules and regulations shall be effective for a period not to exceed 360 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of P.L.1968, c.410.

3. a. A taxpayer, upon the review and approval of the taxpayer's application therefor by the director and the Attorney General, shall be allowed a credit for the taxable year against the tax otherwise due for the taxable year pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 25 percent of the fair market value of the taxpayer's qualified contribution to the gun buyback program during the taxable year.

b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director. The amount of the credit applied under this section against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year, together with any other credits allowed by law, shall not exceed 50 percent of the tax liability otherwise due. The amount of the qualified contribution that is claimed as a credit pursuant to this section shall not be allowed as an amount calculated or claimed pursuant to any other deduction or credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.

c. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed a credit directly under the gross income tax, but the amount of credit of a taxpayer in respect of a distributive share of partnership income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.

(2) A New Jersey S corporation shall not be allowed a credit directly under the gross income tax, but the amount of credit of a taxpayer in respect of a pro rata share of S Corporation income shall be determined by allocating to the taxpayer that proportion of the credit acquired by the New Jersey S Corporation that is equal to the taxpayer's share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer's taxable year.

d. The amount of tax credits approved by the director and the Attorney General pursuant to this section and section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall not exceed a cumulative total of $2,000,000 in any calendar year to apply against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., and the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). If the cumulative amount of tax credits allowed to taxpayers in a calendar year exceeds the amount of credits available in that year, then taxpayers who have first applied for and have not been allowed a credit for that reason shall be allowed, in the order in which they have submitted an application for the allowance of a credit, the amount of tax credit on the first day of the next succeeding calendar year in which tax credits under this section and section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) are not in excess of the amount of credits available.

e. As used in this section:

"Director" means the Director of the Division of Taxation in the Department of the Treasury.

"Gun buyback program" means the Statewide gun buyback program established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).

f. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the director, in consultation with the Attorney General, may adopt immediately upon filing with the Office of Administrative Law such rules and regulations as the director or the Attorney General determine to be necessary to implement the provisions of this section, which rules and regulations shall be effective for a period not to exceed 360 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of P.L.1968, c.410.

4. The Attorney General, in consultation with the Director of the Division of Taxation in the Department of the Treasury, is authorized to promulgate guidelines or directives, as appropriate, to implement and enforce the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. This act shall take effect immediately; provided, however, that section 1 shall remain inoperative until the first day of the seventh month next following the date of enactment and sections 2 and 3 shall apply to privilege periods and taxable years beginning on or after January 1 next following the date of enactment.

STATEMENT

This bill requires the Attorney General to establish a Statewide gun buyback program that allows citizens of this State to voluntarily and anonymously surrender firearms and weapons in their possession in exchange for a reward. The form and amount of the reward, such as cash or debit card, is to be determined by the Attorney General.

Under the Statewide gun buyback program, the Attorney General is required to hold at least three gun buyback programs a year throughout the State. The bill requires one gun buyback program to be held in the northern region, one program to be held in the central region, and one program to be held in the southern region of the State, and provides that of those three programs at least one is to be held in an urban area with a high crime rate as determined by the most recent issue of the Uniform Crime Report published by the Department of Law and Public Safety.

The bill directs the Attorney General to partner with local law enforcement agencies and community organizations in coordinating gun buyback events when possible.

The bill provides for the gun buyback program to be funded by: forfeiture funds received by the Attorney General as instrumentalities of crime; private donations from corporations, small businesses, and individuals; and any other monies that may be available to the Attorney General.

The bill allows a corporation business tax credit and gross income tax credit for private donations to the program, equal to 25 percent of the fair market value of the taxpayers qualified contribution to the gun buyback program, not to exceed a cumulative total of $2 million in any calendar year, and upon approval of the taxpayer's application by the Director of the Division of Taxation in the Department of the Treasury and the Attorney General.

The bill provides for the tax credits to become available for privilege periods and taxable years beginning on or after the January 1 next following the date of enactment.