Amerada Hess Corp. v. Director, Division of Taxation, New Jersey Department of the Treasury

Appellants in this litigation are 13 major oil companies that do business in the State of New Jersey. They are subject to New Jersey’s Corporation Business Tax. They also are subject to the federal windfall profit tax imposed on producers of crude oil. None of appellants’ oil production takes place in New Jersey.

Each appellant has sought to deduct its federal windfall profit tax in calculating “entire net income” for purposes of the New Jersey Corporation Business Tax. Under the applicable New Jersey statute, however, a corporation may not deduct a federal tax that is “on or measured by…