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A4137
ASSEMBLY, No. 4137
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 19, 2026
Sponsored by:
Assemblywoman� CAROL A. MURPHY
District 7 (Burlington)
Co-Sponsored by:
Assemblyman Scharfenberger
SYNOPSIS
���� New Jersey Battlefield to Boardroom Act; Provides
corporation business tax credits and gross income tax credits for qualified
wages of certain veterans.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
establishing a corporation business tax credit and
gross income tax credit for qualified wages of certain veterans, 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.��� This act shall be known
and may be cited as �The New Jersey Battlefield to Boardroom Act.�
���� 2.��� a.� (1)� For privilege
periods commencing on or after January 1, 2026 but before January 1, 2030, 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 value of ten
percent of qualified wages paid in the privilege period to a qualified veteran
in the course of sustained employment.� For each privilege period, a taxpayer�s
credit allowed pursuant to this section shall not exceed $1,200 for each
qualified veteran.
���� (2)� For a taxpayer to qualify
for the credit allowed pursuant to this section for a privilege period, the
taxpayer shall comply with the requirements of this paragraph.
���� Twenty-five percent of the
taxpayer�s new employees for the privilege period for which credit is claimed
shall be qualified veterans.
���� If the taxpayer received the
credit allowed pursuant to this section for the privilege period immediately
preceding the privilege period for which credit is claimed, then 50 percent of
the qualified veterans hired in the immediately preceding privilege period
shall remain employed by the taxpayer for the privilege period for which credit
is claimed.
���� The taxpayer shall provide
veteran support services that are accessible in the workplace, which services
may, but not necessarily, be procured through a private veteran support
services service provider.
���� The taxpayer shall regularly
conduct specific recruitment efforts to hire qualified veterans and their
nuclear family members.
���� The taxpayer shall provide
support to outreach efforts of veteran support organizations.
���� The taxpayer shall comply with
the federal Uniformed Services Employment and Reemployment Rights Act (38
U.S.C. s.4301 et seq.) and provide additional privileges in excess of the
rights protected by the federal Uniformed Services Employment and Reemployment
Rights Act.
���� b.��� (1)� 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, added together with any other credit allowed
against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5),
shall not exceed 50% 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.
���� Unused credit resulting from
the limitations of this paragraph may be carried forward, if necessary, for use
in the seven privilege periods following the privilege period for which the
credit is allowed.
���� (2)� A taxpayer shall not be
granted a credit pursuant to this section for the qualified wages paid to a
qualified veteran in a privilege period if the qualified wages of the qualified
veteran or the job providing qualified wages to the qualified veteran is included
in the calculation of another credit against any State tax or a grant pursuant
to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides
with the applicable privilege period.�
���� (3)� If the director
determines that a taxpayer is displacing employees and replacing the employees
with qualified veterans for the primary purposes of obtaining the credit
allowed pursuant to this section, the director shall deny the credit allowed
under this section for the taxpayer and shall issue a tax assessment for the
recapture of credit previously allowed to the taxpayer under this section plus
an assessment of 50% of any credit subject to recapture as penalty.�
���� c.��� As used in this section:
���� �Sustained employment� means a
period of time no less than 185 business days during the privilege period in
which a qualified veteran is earning qualified wages.
���� �Qualified veteran� means a
resident of this State initially hired by the taxpayer on or after January 1,
2010 that has been honorably discharged or released under honorable
circumstances from active service, occurring on or after January 1, 1965, in
any branch of the Armed Forces of the United States.
���� �Qualified wages� mean any
salaries, wages and remuneration subject to the �New Jersey Gross Income Tax
Act,� N.J.S.54A:1-1 et seq., paid to a qualified veteran on or after January 1,
2026 but before January 1, 2030 for labor rendered in service to an enterprise
of the taxpayer.
���� 3.��� a.� (1)� For taxable
years commencing on or after January 1, 2026 but before January 1, 2030, a
taxpayer shall be allowed a credit against the tax due pursuant to the �New
Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., in an amount equal to the
value of ten percent of qualified wages paid in the taxable year to a qualified
veteran in the course of sustained employment.� For each taxable year, a
taxpayer�s credit allowed pursuant to this section shall not exceed $1,200 for
each qualified veteran.
���� (2)� For a taxpayer to qualify
for the credit allowed pursuant to this section for a taxable year, the
taxpayer shall comply with the requirements of this paragraph.
���� Twenty-five percent of the
taxpayer�s new employees for the taxable year for which credit is claimed shall
be qualified veterans.
���� If the taxpayer received the
credit allowed pursuant to this section for the taxable year immediately
preceding the taxable year for which credit is claimed, then 50 percent of the
qualified veterans hired in the immediately preceding taxable year shall remain
employed by the taxpayer for the taxable year for which credit is claimed.
���� The taxpayer shall provide
veteran support services that are accessible in the workplace, which services
may, but not necessarily, be procured through a private veteran support
services service provider.
���� The taxpayer shall regularly
conduct specific recruitment efforts to hire qualified veterans and their
nuclear family members.
���� The taxpayer shall provide
support to outreach efforts of veteran support organizations.
���� The taxpayer shall comply with
the federal Uniformed Services Employment and Reemployment Rights Act (38
U.S.C. s.4301 et seq.) and provide additional privileges in excess of the
rights protected by the federal Uniformed Services Employment and Reemployment
Rights Act.�
���� b.��� (1)� A credit allowed pursuant
to this section shall not reduce the tax liability otherwise due pursuant to
the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et seq., for a taxable
year to less than zero.
���� Unused credit resulting from
the limitations of this paragraph may be carried forward if necessary to the seven
taxable years following the taxable year for which the credit was allowed.� The
form and method of carry forward shall be as prescribed by the director.
���� (2)� A taxpayer shall not be
granted a credit pursuant to this section for the qualified wages paid to a
qualified veteran in a taxable year if the qualified wages of the qualified
veteran or the job providing qualified wages to the qualified veteran is included
in the calculation of another credit against any State tax or a grant pursuant
to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides
with the applicable taxable year.�
���� (3)� If the director
determines that a taxpayer is displacing employees and replacing the employees
with qualified veterans for the primary purposes of obtaining the credit
allowed pursuant to this section, the director shall deny the credit allowed
under this section for the taxpayer and shall issue a tax assessment for the
recapture of credit previously allowed to the taxpayer under this section plus
an assessment of 50% of any credit subject to recapture as penalty.�
���� c.��� As used in this section:
���� �Sustained employment� means a
period of time no less than 185 business days during the privilege period in
which a qualified veteran is earning qualified wages.
���� �Qualified veteran� means a
resident of this State initially hired by the taxpayer on or after January 1,
2010 that has been honorably discharged or released under honorable
circumstances from active service, occurring on or after January 1, 1965, in
any branch of the Armed Forces of the United States.
���� �Qualified wages� mean any
salaries, wages and remuneration subject to the �New Jersey Gross Income Tax
Act,� N.J.S.54A:1-1 et seq., paid to a qualified veteran on or after January 1,
2026 but before January 1, 2030 for labor rendered in service to an enterprise
of the taxpayer.
���� 4.��� This act shall take
effect immediately.
STATEMENT
���� This bill is entitled �The New
Jersey Battlefield to Boardroom Act.�� The bill provides a corporation business
tax credit and gross income tax credit for qualified wages of certain
veterans.�
���� The two credits established by
this bill provide an employer with a credit in the amount of 10% of the wages
paid to a qualified veteran.� The credits may not exceed $1,200 for each
qualified veteran per tax year.� The bill defines a qualified veteran as a
resident of this State initially hired by the taxpayer on or after January 1,
2010 that has been honorably discharged or released under honorable
circumstances from active service, occurring on or after January 1, 1965, in
any branch of the Armed Forces of the United States.� The bill requires that
for purposes of the credits� availability the wages of a qualified veteran must
be subject to the gross income tax and paid on or after January 1, 2026 but
before January 1, 2030.� To be creditable, wages must also arise from
employment of a qualified veteran for at least 185 business days of the
applicable tax year.
���� To qualify for a credit, the
bill imposes a series of conditions on a taxpayer as an employer.� For a tax
year that the credit is claimed, the bill requires that 25 percent of the
taxpayer�s new employees be qualified veterans.� For tax years immediately
subsequent to a prior credit year, the bill further requires that 50 percent of
the qualified veterans hired in that prior tax year must remain employed by the
taxpayer.�
���� In addition to employment
criteria, the bill conditions credit qualification on other aspects of veteran
employment.� The bill requires a taxpayer to provide veteran support services
that are accessible in the workplace.� The bill further conditions credit
qualification on a taxpayer�s regular recruitment efforts to hire qualified
veterans and their nuclear family members while providing support to outreach
efforts of veteran support organizations.� The bill also conditions credit
qualification on compliance with the federal Uniformed Services Employment and
Reemployment Rights Act and the provision of privileges in excess of the rights
protected by that act.�
���� In addition to providing the
terms of credit qualification, the bill contains provisions aimed at preventing
potential misuse of the credit.� The bill prohibits taxpayers from
simultaneously using the wages or employment of a qualified veteran to qualify
for the credit and any other generally available employment incentive that
comes in the form of a State tax credit or grant.� The bill also empowers the
Director of the Division of Taxation to recapture credit, plus an additional
50% penalty, if the Director determines that the employer displaced employees
to replace them with qualified veterans for the primary purpose of taking
advantage of the credit.
���� The credits established by
this bill are limited in duration in that they are available for tax years
commencing on or after January 1, 2026 but before January 1, 2030.