Increases qualified research expenses tax credit for corporation business taxpayers engaged in targeted industries; increases basic research payment tax credit; allows research tax credit to be refundable.

New Jersey's S 1035 increases tax credits for businesses conducting research in the state. It raises the credit rate for qualified research expenses from 10% to 15% for corporations primarily operating in targeted industries like clean energy, life sciences, and advanced transportation. The bill also increases the basic research payments credit to 15% and makes the total credit refundable (allowing taxpayers to receive cash payments for unused credits). These changes apply only to research conducted within New Jersey and affect eligible corporations filing business tax returns.