Read the full stored bill text
A1942
ASSEMBLY, No. 1942
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblywoman ANNETTE QUIJANO
District 20 (Union)
SYNOPSIS
���� Provides credits against corporation business and
gross income taxes for certain employers that invest in human capital.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
providing credits against corporation business and gross income taxes for certain
employers that provide certain worker training 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 that is a
qualified employer in the State shall be allowed a credit against the tax due
pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period in
the amount of 10 percent of the human capital investment made by the taxpayer
in a privilege period, up to a maximum credit of $2,000 per employee.
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section and any other
credits allowed against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the director.
���� The amount of the credit
applied pursuant to this section against the tax imposed pursuant to section 5
of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall not reduce a
taxpayer�s tax liability to an amount less than the statutory minimum provided
in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
���� c.��� A taxpayer may claim a
credit allowed pursuant to this section for human capital investment made
during a maximum of five privilege periods.
���� d.��� As used in this section:
���� �Human capital investment�
means amounts paid by a qualified employer for job training or work education
programs offered in the State, and provided to an employee to improve the
employee�s job skills or knowledge, and which results in the award of an industry-recognized
credential to the employee upon successful completion.
���� �Qualified employer� means a
business that has less than $2,500,000 in gross receipts annually, that has
been operating in the State for fewer than 10 years as of the last day of the
privilege period for which a credit pursuant to this section is claimed, and
that employs individuals in the State.
���� 2.��� a.� A taxpayer that is a
qualified employer in the State shall be allowed a credit against the tax
otherwise due for the taxable year under the �New Jersey Gross Income Tax Act,�
N.J.S.54A:1-1 et seq., in the amount of 10 percent of the human capital investment
made by the taxpayer in a taxable year, up to a maximum credit of $2,000 per
employee.�
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section and any other
credits allowed against the New Jersey gross income tax due pursuant to
N.J.S.54A:1-1 et seq. for a taxable year shall be as prescribed by the
director.
���� The amount of the credit
applied against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1
et seq. shall not reduce a taxpayer�s New Jersey gross income tax liability to
an amount less than zero.
���� c.��� A taxpayer may claim a
credit allowed pursuant to this section for human capital investment made
during a maximum of five privilege periods.
���� d.��� A business entity that
is classified as a partnership for federal income tax purposes shall not be
allowed a credit directly, but the amount of credit of a taxpayer in respect of
a distributive share of entity income, shall be determined by allocating to the
taxpayer that proportion of the credit acquired by the entity that is equal to
the taxpayer�s share, whether or not distributed, of the total distributive
income or gain of the entity for its taxable year ending within or with the
taxpayer�s taxable year.
���� A New Jersey S Corporation
shall not be allowed a 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.
���� e.��� As used in this section:
���� �Human capital investment�
means amounts paid by a qualified employer for job training or work education
programs offered in the State, and provided to an employee to improve the
employee�s job skills or knowledge, and which results in the award of an
industry-recognized credential to the employee upon successful completion.
���� �Qualified employer� means a
business that has less than $2,500,000 in gross receipts annually, that has
been operating in the State for fewer than 10 years as of the last day of the
taxable year for which a credit pursuant to this section is claimed, and that
employs individuals in the State.�
���� 3.��� This act shall take
effect immediately and apply to privilege periods and taxable years commencing
on or after the January 1 next following enactment.
STATEMENT
���� This bill provides credits
against the corporation business and gross income taxes for qualified employers
that invest in human capital by providing certain job training or work
education programs to their employees. The amount of the credit is 10 percent
of the amount paid by the taxpayer for human capital investment in a privilege
period or taxable year, up to a maximum credit of $2,000 per employee.�
���� The bill defines �human
capital investment� as amounts paid by a qualified employer for job training or
work education programs offered in the State, and provided to an employee to
improve the employee�s job skills or knowledge, and which results in the award
of an industry-recognized credential to the employee upon successful
completion. �Qualified employer� is defined in the bill as a business that has
less than $2,500,000 in gross receipts annually, that has been operating in the
State for fewer than 10 years as of the last day of the privilege period or taxable
year for which a credit pursuant to this bill is claimed, and that employs
individuals in the State. The bill provides that a taxpayer may claim a credit for
human capital investment made during a maximum of five privilege periods.
���� The bill provides that the gross
income tax credit when applied may not reduce the taxpayer�s liability to an
amount less than zero, and that the credit against the corporation business tax
liability may not reduce the taxpayer�s liability to an amount less than the statutory
minimum.
���� The bill would take effect
immediately upon enactment and apply to privilege periods and taxable years
commencing on or after the January 1 following enactment.