Amerada Hess Corporation, Atlantic Richfield Company, Conoco Inc., Cities Service Company, Exxon Corporation…

Summary

The New Jersey Supreme Court held that the federal windfall profit tax on domestic crude oil is a tax “on or measured by profits or income” within the meaning of N.J.S.A. 54:10A-4(k)(2)(C) and therefore cannot be deducted from the entire net income base for the Corporation Business Tax. The Court reversed the Appellate Division and reinstated the Tax Court’s judgment denying the oil companies’ deduction.