Gradually reduces CBT rate.

This bill gradually reduces New Jersey's Corporation Business Tax (CBT) rate for corporations filing tax returns. It lowers the standard tax rate from 7% for tax years ending after December 31, 2020, to 5% in 2021, 3% in 2022, and 2.5% in 2023. Small New Jersey S corporations with net income under $100,000 will see reduced rates (3.5% for 2020-2021, 2.5% for 2021 onward). The changes apply to corporations calculating tax under existing law, modifying the rate schedule in Section 5 of P.L.1945, c.162.