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A1477
ASSEMBLY, No. 1477
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman ANTWAN L. MCCLELLAN
District 1 (Atlantic, Cape May and Cumberland)
Co-Sponsored by:
Assemblywoman Bagolie, Assemblymen Simonsen, Barlas,
Assemblywomen Tucker, Carter and Simmons
SYNOPSIS
���� Provides corporation business tax and gross income
tax credits for employers of certain persons with disabilities.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
providing credits against the corporation business and
gross income tax for employing persons with disabilities, and supplementing
P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� A taxpayer shall be
allowed a credit against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5) in an amount equal to 15 percent of the wages paid by the
taxpayer during a privilege period to a qualified employee with a disability.�
The credit provided pursuant to this section during a privilege period shall
not exceed $2,000 per qualified employee with a disability.
���� b.��� (1)� To claim the credit
provided pursuant to this section, a taxpayer shall submit an application to
the director for certification that one or more employees meet the criteria of
a qualified employee with a disability for purposes of qualifying for the
credit.� The director shall establish an application process and prescribe the
form and manner through which a taxpayer may submit an application for a
certification.�
���� (2)� The director shall review
each application for certification submitted by a taxpayer in accordance with
this section and make a determination regarding the approval of an application
for certification within 90 calendar days of the date a complete application is
received.� The director shall issue a written certification to each taxpayer whose
application has been reviewed and approved by the director in accordance with
this section within five calendar days of the date the director�s determination
is made.� A copy of the certification shall be included in the filing of a
return that includes a claim for the credit.� The contents of the certification
shall state the fact of the certification and not disclose any private or
confidential health information.
���� (3)� If the director fails to
make a determination regarding an application submitted pursuant to this
subsection within 90 calendar days of the date the application is received, or
if the director fails to issue a written certification within five calendar days
of the date a determination is made, the application shall be deemed to have
been approved and the written certification shall be deemed to have been issued
by the director.� Each taxpayer that submitted an application in accordance
with this subsection but fails to receive a determination from the director
within 90 calendar days of the date the application is submitted, or fails to
receive a written certification from the director within five calendar days of
the date of the director�s determination is made, shall include a copy of the
taxpayer�s application when filing a return that includes a claim for the
credit allowed in accordance with subsection a. of this section.
���� c.� All information regarding
a qualified employee with a disability which is obtained or compiled in
connection with the certification and which may be identified with the
qualified employee with a disability shall not be released to a person other
than the qualified employee with a disability, except as provided by subsection
d. of this section, unless the qualified employee with a disability provides
written permission to the division for the release of the information, provided
however that the division may release program statistics so classified as to
prevent the identification of a particular qualified employee with a disability
or that person�s disability.
���� d. The director may confirm to
the employer of a qualified employee with a disability, upon application of the
employer, the fact that a qualified employee with a disability has been so
certified.
���� e.��� The order of priority of
the application of the credit allowed under this section and any other credits
allowed by law shall be as prescribed by the Director of the Division of
Taxation.� The amount of credits 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 payments, credits, deductions, and adjustments allowed
by law, shall not exceed 50 percent of the tax liability otherwise due and
shall not reduce the tax liability for a privilege period to an amount less
than the statutory minimum provided in subsection (e) of section 5 of P.L.1945,
c.162.� The amount of the credit otherwise allowable under this section which
cannot be applied for the privilege period due to the limitations of this
subsection or under other provisions of P.L.1945, c.162 (C.54:10A-1 et seq.)
may be carried forward, if necessary, to the seven privilege periods following
the privilege period for which the credit is allowed.
���� f.���� As used in this
section:
���� �Director� means the Director
of the Division of Vocational Rehabilitation Services in the Department of
Labor and Workforce Development.
���� �Division� means the Division
of Vocational Rehabilitation Services in the Department of Labor and Workforce
Development.
���� �Qualified employee with a
disability� means a person with a disability defined under section 3 of the
federal �Americans with Disabilities Act of 1990,� Pub.L.101-336 (42 U.S.C.
s.12102), who is employed by the taxpayer for at least 35 hours a week, and
paid wages at a rate of no less than $15 per hour.� A �qualified employee with
a disability� shall not include any person with a disability who works for the
taxpayer as an independent contractor or on a consulting basis.
���� 2.��� a.� A taxpayer shall be
allowed a credit against the tax imposed pursuant to the �New Jersey Gross
Income Tax Act,� N.J.S.54A:1-1 et seq., in an amount equal to 15 percent of the
wages paid by the taxpayer during a taxable year to a qualified employee with a
disability.� The credit provided pursuant to this section during a taxable year
shall not exceed $2,000 per qualified employee with a disability.
���� b.��� (1)� To claim the credit
provided pursuant to this section, a taxpayer shall submit an application to
the director for certification that one or more employees meet the criteria of
a qualified employee with a disability for purposes of qualifying for the
credit.� The director shall establish an application process and prescribe the
form and manner through which a taxpayer may submit an application for a
certification.�
���� (2)� The director shall review
each application for certification submitted by a taxpayer in accordance with
this section and make a determination regarding the approval of an application
for certification within 90 calendar days of the date a complete application is
received.� The director shall issue a written certification to each taxpayer whose
application has been reviewed and approved by the director in accordance with
this section within five calendar days of the date the director�s determination
is made.� A copy of the certification shall be included in the filing of a
return that includes a claim for the credit.� The contents of the certification
shall state the fact of the certification and not disclose any private or
confidential health information.
���� (3)� If the director fails to
make a determination regarding an application submitted pursuant to this
subsection within 90 calendar days of the date the application is received, or
if the director fails to issue a written certification within five calendar days
of the date a determination is made, the application shall be deemed to have
been approved and the written certification shall be deemed to have been issued
by the director.� Each taxpayer that submitted an application in accordance
with this subsection but fails to receive a determination from the director
within 90 calendar days of the date a complete application is received, or
fails to receive a written certification from the director within five calendar
days of the date of the director�s determination is made, shall include a copy
of the taxpayer�s application when filing a return that includes a claim for
the credit allowed in accordance with subsection a. of this section.
���� c.��� All information
regarding a qualified employee with a disability which is obtained or compiled
in connection with the certification and which may be identified with the
qualified employee with a disability shall not be released to a person other
than the qualified employee with a disability, except as provided by subsection
d. of this section, unless the qualified employee with a disability provides
written permission to the division for the release of the information, provided
however that the division may release program statistics so classified as to
prevent the identification of a particular qualified employee with a disability
or that person�s disability.
���� d. The director may confirm to
the employer of a qualified employee with a disability, upon application of the
employer, the fact that a qualified employee with a disability has been so
certified.
���� e.��� (1)� A business entity
that is classified as a partnership for federal income tax purposes shall not
be allowed the credit directly under the gross income tax, but the amount of
credit of the 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 taxpayer that is a New
Jersey S corporation shall not be allowed the 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.
���� f.���� The order of priority
of the application of the credit allowed under this section and any other
credits allowed by law shall be as prescribed by the director.� The amount of a
tax credit allowed pursuant to this section, together with any payments, credits,
deductions, and adjustments allowed by law, shall not reduce the amount of tax
otherwise due for the taxable year under the �New Jersey Gross Income Tax Act,�
N.J.S.54A:1-1 et seq. to an amount less than zero.� The amount of credit
otherwise allowable under this section which cannot be applied for the taxable
year due to the limitations of this subsection may be carried forward, if
necessary, to the seven taxable years following the taxable year for which the
credit is allowed.
���� g.��� As used in this section:
���� �Director� means the Director
of the Division of Vocational Rehabilitation Services in the Department of
Labor and Workforce Development.
���� �Division� means the Division
of Vocational Rehabilitation Services in the Department of Labor and Workforce
Development.
���� �Qualified employee with a
disability� means a person with a disability defined under section 3 of the
federal �Americans with Disabilities Act of 1990,� Pub.L.101-336 (42 U.S.C. s.
12102), who is employed by the taxpayer for at least 35 hours a week, and paid
wages at a rate of no less than $15 per hour.� A �qualified employee with a
disability� shall not include a person with a disability who works for the
taxpayer as an independent contractor or on a consulting basis.
���� 3.��� The Director of the Division
of Vocational Rehabilitation Services in the Department of Labor and Workforce
Development, in consultation with the Director of the Division of Taxation in
the Department of the Treasury, shall adopt rules and regulations in accordance
with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1
et seq.) as necessary to implement the provisions of this act.
���� 4.��� This act shall take
effect immediately and apply to privilege periods and taxable years beginning
on or after the January 1 next following the date of enactment.
STATEMENT
���� This bill provides corporation
business and gross income tax credits to taxpayers that employ certain persons
with disabilities.� The credit would be for up to 15 percent of the wages paid
by the taxpayer during a taxable year to a qualifying employee with a disability,
not to exceed $2,000 per qualified employee.
���� To claim the credit, a
taxpayer would be required to submit an application to the Director of the
Division of Vocational Rehabilitation Services in the Department of Labor and
Workforce Development for certification that the employee has a disability for
purposes of qualifying for the credit.� A copy of the certification would be
included with the taxpayer�s tax return.� The contents of the certification would
only state the fact the employee has a qualifying disability and not disclose
any private or confidential health information.
���� The bill requires the director
to establish an application process and prescribe the form and manner through
which a taxpayer may submit an application to obtain a certification from the
director that an employee is a qualified employee with a disability for
purposes of the tax credit.� The bill provides that applications would be
deemed approved and written authorizations are deemed issued if the director
fails to make a determination regarding within 90 calendar days of the date a
complete application is received or if the director fails to issue a written
authorization within five calendar days of the date a determination is made.
���� The bill defines a �qualified
employee with a disability� as a person with a disability recognized under the
federal �Americans with Disabilities Act of 1990,� Pub.L.101-336 (42 U.S.C. s.
12102).� A qualified employee is also required to be employed by the taxpayer
for at least 35 hours a week and paid wages at a rate of no less than $15 per
hour.� A taxpayer would be unable to claim the credit for the wages paid to a
person with a disability who works for the taxpayer as an independent
contractor or on a consulting basis.