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A2394
ASSEMBLY, No. 2394
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
���� Provides corporation business tax credits and gross
income tax credits to employers that hire certain individuals through One-Stop
Career Centers.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
providing corporation business tax credits and gross
income tax credits to employers for hiring certain individuals 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 the salary and wages paid by the
taxpayer during the privilege period to each qualified employee employed by the
taxpayer, provided that:
���� (1)�� the amount of the tax
credit shall not to exceed $3,000 for each qualified employee employed by the
taxpayer during the privilege period;
���� (2)�� the amount of the tax
credit shall be prorated for each qualified employee who was not employed by
the taxpayer for the entire privilege period; and
���� (3)�� the tax credit shall not
be allowed for the salary and wages paid to any qualified employee who was
employed by the taxpayer for less than 90 calendar days.
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section and any other
credits allowed by law against the tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10A-5) shall be as prescribed by the director.� The
amount of the credit 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 credits allowed by law, shall not exceed 50 percent of
the tax liability otherwise due and shall not reduce the 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).� The amount of the tax 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 tax
credit was issued, after which the tax credit shall expire.
���� c.���� No tax credit shall be
allowed pursuant to this section for any costs or expenses included in the
calculation of any other tax credit or exemption granted pursuant to a claim
made on a tax return filed with the director, or included in the calculation of
an award of business assistance or incentive, for a period of time that
coincides with the privilege period for which a tax credit authorized pursuant
to this section is allowed.
���� d.��� The director shall
determine the form and manner in which a taxpayer shall apply for the tax
credit, and the director shall collaborate with the Commissioner of Labor and
Workforce Development, as appropriate, to determine the hiring and employment
information to be included by the taxpayer and to confirm that each qualified
employee attended all required training services provided through a One-Stop
Career Center and achieved an industry valued or nationally recognized
credential during the period of unemployment immediately preceding the date of
employment by the taxpayer.
���� e.���� As used in this
section:
���� �One-Stop Career Center� means
the same as that term is defined in section 3 of P.L.1992, c.43 (C.34:15D-3).
���� �Qualified employee� means an
individual who is employed by a taxpayer in this State, which individual was
unemployed for at least 60 calendar days prior to the date of employment by the
taxpayer, and which individual has attended all required training services
provided through the One-Stop Career Center and achieved an industry valued or
nationally recognized credential during the period of unemployment immediately
preceding the date of employment by the taxpayer.
���� 2.��� a. A taxpayer that is an
employer shall be allowed a credit against the tax otherwise due under the �New
Jersey Gross Income Tax Act,� N.J.S.A.54A:1-1 et seq., in an amount equal to
the salary and wages paid by the taxpayer during the taxable year to each
qualified employee employed by the taxpayer, provided that:
���� (1)�� the amount of the tax
credit shall not to exceed $3,000 for each qualified employee employed by the
taxpayer during the taxable year;
���� (2)�� the amount of the tax
credit shall be prorated for each qualified employee who was not employed by
the taxpayer for the entire taxable year; and
���� (3)�� the tax credit shall not
be allowed for the salary and wages paid to any qualified employee who was
employed by the taxpayer for less than 90 calendar days.
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section and any other
credits allowed by law against the tax imposed pursuant to the �New Jersey
Gross Income Tax Act,� N.J.S.A.54A:1-1 et seq., for a taxable year shall be as
prescribed by the director.� The amount of the credit applied under this
section against the tax imposed pursuant to N.J.S.A.54A:1-1 et seq. for a
taxable year, together with other payments, credits, deductions, and
adjustments allowed by law, shall not reduce a taxpayer�s tax liability to an
amount less than zero.� The amount of the tax credit otherwise allowable under
this section which cannot be applied for the taxable year due to the
limitations of this subsection or under other provisions of N.J.S.A.54A:1-1 et
seq. may be carried forward, if necessary, to the seven taxable years following
the taxable year for which the tax credit was issued, after which the tax
credit shall expire.
���� c.���� No tax credit shall be
allowed pursuant to this section for any costs or expenses included in the
calculation of any other tax credit or exemption granted pursuant to a claim
made on a tax return filed with the director, or included in the calculation of
an award of business assistance or incentive, for a period of time that
coincides with the taxable year for which a tax credit authorized pursuant to
this section is allowed.
���� d.��� (1) A business entity
that is classified as a partnership for federal income tax purposes shall not
be allowed a tax credit pursuant to this section directly, but the amount of
tax credit of a taxpayer in respect to a distributive share of entity income shall
be determined by allocating to the taxpayer that proportion of the tax 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.
���� (2)�� A New Jersey S
Corporation shall not be allowed a tax credit pursuant to this section
directly, but the amount of the tax 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 tax 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 income of the New Jersey S Corporation for its
privilege period ending within or with the taxpayer�s taxable year.
���� e.���� The director shall
determine the form and manner in which a taxpayer shall apply for the tax
credit, and the director shall collaborate with the Commissioner of Labor and
Workforce Development, as appropriate, to determine the hiring and employment
information to be included by the taxpayer and to confirm that each qualified
employee attended all required training services provided through a One-Stop
Career Center and achieved an industry valued or nationally recognized
credential during the period of unemployment immediately preceding the date of
employment by the taxpayer.
���� f.���� As used in this
section:
���� �One-Stop Career Center� means
the same as that term is defined in section 3 of P.L.1992, c.43 (C.34:15D-3).
���� �Qualified employee� means an
individual who is employed by a taxpayer in this State, which individual was
unemployed for at least 60 calendar days prior to the date of employment by the
taxpayer, and which individual has attended all required training services
provided through the One-Stop Career Center and achieved an industry valued or
nationally recognized credential during the period of unemployment immediately
preceding the date of employment by the taxpayer.
���� 3.��� This act shall take
effect immediately and shall apply to privilege periods and taxable years beginning
on or after January 1 of the year next following the date of enactment.
STATEMENT
���� This bill provides corporation
business tax credits and gross income tax credits to employers that employ
qualified employees who received employment-related assistance through a
One-Stop Career Center.
���� Under the bill, a taxpayer is
allowed a tax credit based on the salary and wages paid to each qualified
employee during the tax period.� However, the bill limits the amount of the tax
credit to $3,000 per qualified employee.� The bill requires the amount of the
tax credit to be prorated for each qualified employee who was not employed by
the taxpayer for the entire tax period.� The bill also provides that a taxpayer
can only claim the tax credit for the salary and wages paid to a qualified
employee who has been employed for a minimum period of 90 calendar days.� Any
amount of any unused tax credit may be carried forward to the seven tax periods
following the year for which the tax credit was issued, after which the tax
credit expires.
���� As defined in the bill,
�qualified employee� means an individual who is employed by a taxpayer in this
State, which individual was unemployed for at least 60 calendar days prior to
the date of employment by the taxpayer, and which individual has attended all required
training services provided through the One-Stop Career Center and achieved an
industry valued or nationally recognized credential during the period of
unemployment immediately preceding the date of employment by the taxpayer.� A
�One-Stop Career Center� means any of the facilities established, sponsored, or
designated by the State, a political subdivision of the State, and a Workforce
Investment Board in a local area to coordinate or make available State and
local programs providing employment and training services or other
employment-directed and workforce development programs and activities,
including job placement services, and any other similar facility as may be
established, sponsored, or designated at any later time to coordinate or make
available any of those programs, services, or activities.
���� The bill requires the Director
of the Division of Taxation to determine the form and manner by which a
taxpayer can apply for the tax credit.� The director is also required to
collaborate with the Commissioner of Labor and Workforce Development, as
appropriate, to determine the hiring and employment information to be included
by the taxpayer and to confirm that each qualified employee attended all required
training services provided through a One-Stop Career Center and achieved an
industry valued or nationally recognized credential during the period of
unemployment immediately preceding the date of employment by the taxpayer.