Read the full stored bill text
A4024
ASSEMBLY, No. 4024
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 12, 2026
Sponsored by:
Assemblyman� ALEX SAUICKIE
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
���� Directs DOLWD to establish regional farm wage;
provides corporation business tax credits and gross income tax credits to farm
employers paying certain farm worker wages.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning tax credits for farm employers paying certain
farm worker wages and supplementing P.L.1966, c.113 (C.34:11-56a et seq.),
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.� The Commissioner of
Labor and Workforce Development shall annually determine the regional farm wage
by averaging the most recent agricultural wage data from Pennsylvania, New York,
and Delaware.
���� b.��� The commissioner shall
annually transmit to the Director of the Division of Taxation the regional farm
wage established pursuant to this section.
���� c.���� As used in this
section, �regional farm wage� means the average hourly wage for employees
engaged to labor on a farm in Pennsylvania, New York, and Delaware.
���� 2.��� a.� A taxpayer that is a
farm employer shall be allowed a credit against the tax imposed pursuant to
section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period in an amount
equal to the qualified compensation paid to employees of the farm employer
during the privilege period, except that the amount of the credit shall not be
less than zero.
���� b.��� The order of priority of
the application of the credit allowed pursuant to this section and any other
credits allowed by law 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 for the privilege period 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).
���� c.���� The amount of the tax
credit otherwise allowable under this section which cannot be applied for the
privilege period may be carried forward, if necessary, to the four privilege
periods following the privilege period for the tax credit was allowed.
���� d.��� No tax credit shall be
allowed pursuant to this section for any costs or expenses included in the
calculation of any other tax credit, exemption, or deduction 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 pursuant to this
section is allowed.
���� e.���� A farm employer shall
apply in a form and manner to be determined by the director for the tax credit
provided pursuant to this section.
���� f.���� As used in this
section:
���� �Director� means the Director
of the Division of Taxation in the Department of the Treasury.
���� �Employee� means an individual
who is engaged by the farm employer on a piece-rate or regular hourly rate
basis to labor on a farm.
���� �Farm employer� means a
taxpayer in this State who engages individuals in this State on a piece-rate or
regular hourly rate basis to labor on a farm.
���� �Farm wage� means the
piece-rate or hourly wage for employees engaged to labor on a farm in this
State pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4).
���� �Qualified compensation� means
the difference between the amount of compensation paid to each employee, less
the amount of compensation paid to each employee above the farm wage, and less
the amount of compensation that would have been paid to each employee had the
employee received the regional farm wage.
���� �Regional farm wage� means the
average hourly wage for employees engaged to labor on a farm in Pennsylvania,
New York, and Delaware established pursuant to section 1 of this act.
���� 3.��� a. �A taxpayer that is a
farm employer shall be allowed a credit against the tax otherwise due under the
�New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., for a taxable year in
an amount equal to the qualified compensation paid to employees of the farm
employer during the taxable year, except that the amount of the credit shall
not be less than zero.
���� b.��� (1)� The director shall
prescribe the order of priority of the application of the credit allowed under
this section and any other credits allowed by law against the tax imposed under
the "New Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq.�
���� (2)� The amount of the credit
applied under this section against the tax imposed pursuant to the "New
Jersey Gross Income Tax Act" N.J.S.54A:1-1 et seq. for a taxable year,
together with any other credits allowed by law, shall not reduce the 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 may
be carried forward, if necessary, to the four taxable years following the
taxable year for which the tax credit was allowed.
���� 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, exemption, or deduction 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 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 S Corporation income of the New Jersey S
Corporation for its privilege period ending within or with the taxpayer�s
taxable year.
���� e.���� A farm employer shall
apply in a form and manner to be determined by the director for the tax credit
provided pursuant to this section.
���� f.���� As used in this
section:
���� �Director� means the Director
of the Division of Taxation in the Department of the Treasury.
���� �Employee� means an individual
who is engaged by the farm employer on a piece-rate or regular hourly rate
basis to labor on a farm.
���� �Farm employer� means a
taxpayer in this State who engages individuals in this State on a piece-rate or
regular hourly rate basis to labor on a farm.
���� �Farm wage� means the
piece-rate or hourly wage for employees engaged to labor on a farm in this
State pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4).
���� �Qualified compensation� means
the difference between the amount of compensation paid to each employee, less
the amount of compensation paid to each employee above the farm wage, and less
the amount of compensation that would have been paid to each employee had the
employee received the regional farm wage.
���� �Regional farm wage� means the
average hourly wage for employees engaged to labor on a farm in Pennsylvania,
New York, and Delaware established pursuant to section 1 of this act.
���� 4.��� This act shall take
effect immediately and apply to taxable years and privilege periods beginning
on or after January 1 next following the date of enactment.
STATEMENT
���� This bill provides corporation
business tax (CBT) credits and gross income tax (GIT) credits to farm employers
in an amount equal to the qualified compensation paid to employees of the farm
employer during the taxable period.� Under the bill, �qualified compensation�
would be calculated as the difference between the amount of compensation paid
to each employee above the farm wage, and less the amount of compensation that
would have been paid to each employee had the employee received the regional
farm wage.� However, the bill provides that the amount of the tax credit may
not be less than zero.�
���� Any amount of the tax credit
that cannot be applied against a farm employer�s CBT liability for a privilege
period can be carried forward to the four privilege periods following the
privilege period for which a portion of the tax credit was allowed.� If the GIT
credit exceeds farm employer�s liability, the amount of the tax credit for the
taxable year can be carried forward to the four taxable years following the
taxable year for which the tax credit was allowed.
���� The bill also requires the
Commissioner of the Department of Labor and Workforce Development to determine
the regional farm wage by averaging the most recent agricultural wage data from
Pennsylvania, New York, and Delaware.� The commissioner will annually transmit
the regional farm wage to the Director of the Division of Taxation.
���� The bill requires the Director
of the Division of Taxation in the Department of the Treasury to determine the
form and manner by which a taxpayer can apply for the tax credit