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A4145
ASSEMBLY, No. 4145
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 19, 2026
Sponsored by:
Assemblyman� ANDREW MACURDY
District 21 (Middlesex, Morris, Somerset and Union)
Assemblyman� WILLIAM B. SAMPSON, IV
District 31 (Hudson)
Assemblywoman� SHAMA A. HAIDER
District 37 (Bergen)
SYNOPSIS
���� Provides temporary corporation business tax and gross
income tax credits for certain employer-provided child care expenditures.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
providing credits against the corporation business tax
and the gross income tax for certain employer-provided child care expenditures,
supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and chapter 4 of Title 54A
of the New Jersey Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� a.� For privilege
periods beginning in the three calendar years following the effective date of
P.L.�� ��, c. ���(C.������ �) (pending before the Legislature as this bill), 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 50 percent of up to
$50,000 of expenses paid or incurred by the taxpayer to acquire, construct,
reconstruct, renovate, or otherwise improve real property in this State that is
to be used by the taxpayer, or another person under contract or agreement with
the taxpayer, to conduct, maintain, and operate a qualified child care center
primarily for the children of individuals employed by the taxpayer.
���� b.��� To be eligible to apply
the credit allowed in accordance with subsection a. of this section against the
tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), a taxpayer
shall make and enter into an agreement with the director on or before the last
day of the privilege period for which the credit is first applied.
���� The agreement shall require
the taxpayer to submit to the director all receipts, bills, invoices, and other
similar documents that the director determines to be necessary to verify the
costs paid or incurred by the taxpayer.
���� The agreement shall require
the taxpayer to demonstrate to the director that the real property acquired,
constructed, reconstructed, renovated, or otherwise improved in this State is
not part of the principal residence of the taxpayer or part of the principal
residence of an individual employed by the taxpayer.
���� The agreement shall require
the taxpayer to demonstrate to the director that the real property acquired,
constructed, reconstructed, renovated, or otherwise improved in this State is
used by the taxpayer, or another person under contract or agreement with the
taxpayer, to conduct, maintain, and operate a qualified child care center
primarily for the children of individuals employed by the taxpayer on the date
the agreement is entered into.
���� The agreement shall require
the taxpayer to use the real property acquired, constructed, reconstructed,
renovated, or otherwise improved in this State to conduct, maintain, and
operate, either directly or indirectly by another person under contract or
agreement with the taxpayer, a qualified child care center primarily for the
children of individuals employed by the taxpayer for a period of 60 consecutive
months beginning on the first day of the first month next following the date
the agreement is entered into.
���� The agreement shall require
the taxpayer to notify the director in writing if, at any time during the
60-month period in which the real property is required to be used as a
qualified child care center, the real property is not used by the taxpayer, or another
person under contract or agreement with the taxpayer, to conduct, maintain, and
operate a qualified child care center primarily for the children of individuals
employed by the taxpayer.
���� The agreement shall require
the taxpayer to repay the amount of credit allowed in accordance with
subsection a. of this section that has been applied to reduce the taxpayer�s
liability for tax, and shall prohibit the taxpayer from applying any unused amount
of credit allowed in accordance with subsection a. of this section, if the
taxpayer is required to notify the director of the taxpayer�s failure to
conduct, maintain, and operate a qualified child care center during the
60-month period in which the real property is required to be used as a
qualified child care center; provided, however, that the taxpayer shall not be
required to repay the amount of any credit, or be prohibited from applying any
unused credit, allowed in accordance with subsection a. of this section, if the
taxpayer�s failure to conduct, maintain, and operate the qualified child care
center during the 60-month period results from a casualty loss, involving the
qualified child care center, or if another person, under contract or agreement
with the taxpayer and the director, assumes the taxpayer�s responsibility to
use the real property to conduct, maintain, and operate a qualified child care
center primarily for the children of individuals employed by that person for
the remainder of the 60-month period.
���� The agreement shall require
the director to assess the amount of any credit allowed in accordance with
subsection a. of this section that is required to be repaid by the taxpayer,
give notice of the assessment to the taxpayer, and make demand upon the taxpayer
for payment of the assessment to be made within 30 days of the date notice and
demand is mailed to the taxpayer by the director.
���� The agreement shall require
the taxpayer to pay to the director interest on an assessment, or any portion
of an assessment, that is not paid in full within 30 days of the date notice
and demand is mailed at a rate of three percentage points above the prime rate
assessed for each month or fraction thereof, compounded annually at the end of
each year, from the date the credit allowed in accordance with subsection a. of
this section was first applied to reduce the taxpayer�s liability for tax until
the date payment is made.
���� The agreement shall stipulate
that an assessment, and any interest on an assessment, required to be paid by
the taxpayer is a deficiency with respect to the payment of a State tax. The
director shall be provided all rights, powers, and duties authorized under the �State
Uniform Tax Procedure Law,� R.S.54:48-1 et seq., to ensure the payment,
collection, or recovery of the deficiency and the taxpayer shall be afforded
all protections, rights, and remedies allowed under R.S.54:48-1 et seq. to
challenge, protest, or appeal the deficiency or any determination or decision
rendered in connection with the deficiency.
���� c.���� If two or more
taxpayers pay or incur costs on or after the effective date of P.L.��� �, c. ���(C.
�������) (pending before the Legislature as this bill), to acquire, construct,
reconstruct, renovate, or otherwise improve real property in this State that is
to be used jointly by the taxpayers, or another person under contract or
agreement with the taxpayers, to conduct, maintain, and operate a qualified
child care center primarily for the children of individuals employed by the
taxpayers, each taxpayer shall be allowed a credit in accordance with
subsection a. of this section for that portion of the costs paid or incurred by
that taxpayer; provided however, that to be eligible to apply the credit
allowed in accordance with subsection a. of this section to reduce a liability
for tax each taxpayer separately shall make and enter into an agreement with
the director in accordance with subsection b. of this section.
���� d.��� The order of priority of
the application of the credit allowed in accordance with subsection a. of 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 credit allowed
in accordance with subsection a. of this section that is applied against the
tax liability of the taxpayer for a privilege period, together with any other
credits allowed against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5), shall not exceed 50 percent of the tax liability otherwise
due, and shall not reduce the tax liability otherwise due, 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 any credit
allowed in accordance with subsection a. of this section that is not applied to
reduce the tax liability of the taxpayer for a privilege period due to the
limitations and conditions of this subsection may be carried forward, if
necessary, to be used by the taxpayer against the tax imposed pursuant to
section 5 of P.L.1945, c.162 (C.54:10A-5) in each of the seven privilege
periods following the privilege period for which the credit is allowed.
���� e.���� As used in this
section:
���� �Grow NJ Kids� means New
Jersey�s quality rating improvement system designed to raise the quality of child
care and early learning programs.
���� �Highly compensated employee�
means the individuals employed by the taxpayer who, in the aggregate, receive
the top 25 percent of all employee compensation paid by the taxpayer.
���� �Qualified child care center�
means a facility that is licensed as a child care center by the Department of
Children and Families in accordance with the �Child Care Licensing Act,�
P.L.1983, c.492 (C.30:5B-1 et seq.), and participates in Grow NJ Kids;
provided, however, that a �qualified child care center� shall not include a
facility licensed by the department if:
���� the principal use of the
facility is for some purpose other than the care, development, and supervision
of children, unless the facility is the principal residence of the person who
owns and operates the qualified child care center;
���� the facility is not used on a
regular basis to provide for the care, development, and supervision of
children;
���� enrollment in the facility is
not open to children of individuals employed by the taxpayer; or
���� use of the facility is limited
or restricted under procedures, criteria, or other systems of selection that
unfairly discriminate in favor of highly compensated employees, or that
unfairly discriminate in favor of individuals employed by the taxpayer on the
basis of race, creed, religion, sex, national origin, disability, or marital
status.
���� 2.��� a.� For privilege
periods beginning in the three calendar years following the effective date of
P.L.�� ��, c. ���(C.� ������) (pending before the Legislature as this bill), 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:
���� 50 percent of up to $50,000 of
expenses paid or incurred by the taxpayer during the privilege period to
conduct, maintain, and operate a qualified child care center of the taxpayer
that is used primarily by the children of individuals employed by the taxpayer;
���� 50 percent of up to $50,000 of
the amount paid by the taxpayer during the privilege period to another person
to conduct, maintain, and operate, under contract or agreement with the
taxpayer, a qualified child care center of the taxpayer that is used primarily
by the children of individuals employed by the taxpayer;
���� 50 percent of up to $50,000 of
the amount paid by the taxpayer during the privilege period to another person,
under contract or agreement with the taxpayer, for the provision of child care
to children of individuals employed by the taxpayer at a qualified child care
center; or
���� 10 percent of up to $50,000 of
the cost paid or incurred by the taxpayer during the privilege period for the
provision, by the taxpayer or by another person under contract or agreement
with the taxpayer, of qualified child care information and referral services to
individuals employed by the taxpayer.
���� b.��� If two or more taxpayers
jointly pay or incur costs or jointly pay amounts eligible for the credit
allowed in accordance with subsection a. of this section during the privilege
period, each taxpayer shall be allowed a credit for that portion of the costs
paid or incurred by that taxpayer or that portion of the amounts paid by that
taxpayer.
���� c.���� The order of priority
of the application of the credit allowed in accordance with subsection a. of
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 credit allowed
in accordance with subsection a. of this section that is applied against the
tax liability of the taxpayer for a privilege period, together with any other
credits allowed against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5), shall not exceed 50 percent of the tax liability otherwise
due, and shall not reduce the tax liability otherwise due 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 any credit
allowed in accordance with subsection a. of this section that is not applied to
reduce the tax liability of the taxpayer for a privilege period due to the
limitations and conditions of this subsection may be carried forward, if
necessary, to be used by the taxpayer against the tax imposed pursuant to
section 5 of P.L.1945, c.162 (C.54:10A-5) in each of the seven privilege
periods following the privilege period for which the credit is allowed.
���� d.��� As used in this section:
���� �Grow NJ Kids� means New
Jersey�s quality rating improvement system designed to raise the quality of
child care and early learning programs.
���� �Highly compensated employee�
means the individuals employed by the taxpayer who, in the aggregate, receive
the top 25 percent of all employee compensation paid by the taxpayer.
���� �Qualified child care center�
means a facility that is licensed as a child care center by the Department of
Children and Families in accordance with the �Child Care Licensing Act,�
P.L.1983, c.492 (C.30:5B-1 et seq.), and participates in Grow NJ Kids; provided
however, that a �qualified child care center� shall not include a facility
licensed by the department if:
���� the principal use of the
facility is for some purpose other than the care, development, and supervision
of children, unless the facility is the principal residence of the person who
owns and operates the qualified child care center;
���� the facility is not used on a
regular basis to provide for the care, development, and supervision of
children;
���� enrollment in the facility is
not open to children of individuals employed by the taxpayer; or
���� use of the facility is limited
or restricted under procedures, criteria, or other systems of selection that
unfairly discriminate in favor of highly compensated employees, or that
unfairly discriminate in favor of individuals employed by the taxpayer on the
basis of race, creed, religion, sex, national origin, disability, or marital
status.
���� �Qualified child care
information and referral services� means services that, at a minimum, identify
local child care services, provide information describing local child care
services available to individuals employed by the taxpayer, and make referrals
of individuals employed by the taxpayer to appropriate child care services when
openings are available.
���� 3.��� a.� For the three
taxable years following the effective date of P.L.��� �, c. ���(C. �������)
(pending before the Legislature as this bill), a taxpayer 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 an amount equal to 50 percent
of up to $50,000 of expenses paid or incurred by the taxpayer to acquire,
construct, reconstruct, renovate, or otherwise improve real property in this
State that is to be used by the taxpayer, or another person under contract or
agreement with the taxpayer, to conduct, maintain, and operate a qualified
child care center primarily for the children of individuals employed by the
taxpayer.
���� b.��� To be eligible to apply
the credit allowed in accordance with subsection a. of this section against the
tax otherwise due for the taxable year under N.J.S.54A:1-1 et seq., a taxpayer
shall make and enter into an agreement with the director on or before the last
day of the taxable year for which the credit is first applied.
���� The agreement shall require
the taxpayer to submit to the director all receipts, bills, invoices, and other
similar documents that the director determines to be necessary to verify the
costs paid or incurred by the taxpayer.
���� The agreement shall require
the taxpayer to demonstrate to the director that the real property acquired,
constructed, reconstructed, renovated, or otherwise improved in this State is
not part of the principal residence of the taxpayer or part of the principal
residence of an individual employed by the taxpayer.
���� The agreement shall require
the taxpayer to demonstrate to the director that the real property acquired,
constructed, reconstructed, renovated, or otherwise improved in this State is
used by the taxpayer, or another person under contract or agreement with the
taxpayer, to conduct, maintain, and operate a qualified child care center
primarily for the children of individuals employed by the taxpayer on the date
the agreement is entered into.
���� The agreement shall require
the taxpayer to use the real property acquired, constructed, reconstructed,
renovated, or otherwise improved in this State to conduct, maintain, and
operate, either directly or indirectly by another person under contract or
agreement with the taxpayer, a qualified child care center primarily for the
children of individuals employed by the taxpayer for a period of 60 consecutive
months beginning on the first day of the first month next following the date
the agreement is entered into.
���� The agreement shall require
the taxpayer to notify the director in writing if, at any time during the
60-month period in which the real property is required to be used as a
qualified child care center, the real property is not used by the taxpayer, or another
person under contract or agreement with the taxpayer, to conduct, maintain, and
operate a qualified child care center primarily for the children of individuals
employed by the taxpayer.
���� The agreement shall require
the taxpayer to repay the amount of credit allowed in accordance with
subsection a. of this section that has been applied to reduce the taxpayer�s
liability for tax, and shall prohibit the taxpayer from claiming any unused amount
of credit allowed in accordance with subsection a. of this section, if the
taxpayer is required to notify the director of the taxpayer�s failure to
conduct, maintain, and operate a qualified child care center during the
60-month period in which the real property is required to be used as a
qualified child care center; provided however, that the taxpayer shall not be
required to repay the amount of any credit, or be prohibited from applying any
unused credit, allowed in accordance with subsection a. of this section, if the
taxpayer�s failure to conduct, maintain, and operate the qualified child care
center during the 60-month period results from a casualty loss, involving the
qualified child care center, or if another person, under contract or agreement
with the taxpayer and the director, assumes the taxpayer�s responsibility to
use the real property to conduct, maintain, and operate a qualified child care
center primarily for the children of individuals employed by that person for
the remainder of the 60-month period.
���� The agreement shall require
the director to assess the amount of any credit allowed in accordance with
subsection a. of this section that is required to be repaid by the taxpayer,
give notice of the assessment to the taxpayer, and make demand upon the taxpayer
for payment of the assessment to be made within 30 days of the date notice and
demand is mailed to the taxpayer by the director.
���� The agreement shall require
the taxpayer to pay to the director interest on an assessment, or portion of an
assessment, that is not paid in full within 30 days of the date notice and
demand is mailed at a rate of three percentage points above the prime rate
assessed for each month or fraction thereof, compounded annually at the end of
each year, from the date the credit allowed in accordance with subsection a. of
this section was first applied to reduce the taxpayer�s liability for tax until
the date payment is made.
���� The agreement shall stipulate
that an assessment, and any interest on an assessment, required to be paid by
the taxpayer is a deficiency with respect to the payment of a State tax. The
director shall be provided all rights, powers, and duties authorized under the �State
Uniform Tax Procedure Law,� R.S.54:48-1 et seq., to ensure the payment,
collection, or recovery of the deficiency and the taxpayer shall be afforded
all protections, rights, and remedies allowed under R.S.54:48-1 et seq. to
challenge, protest, or appeal the deficiency or any determination or decision
rendered in connection with the deficiency.
���� c.���� If two or more
taxpayers pay or incur costs on or after the effective date of P.L. ����, c. ���(C.������
�) (pending before the Legislature as this bill), to acquire, construct,
reconstruct, renovate, or otherwise improve real property in this State that is
to be used jointly by the taxpayers, or another person under contract or
agreement with the taxpayers, to conduct, maintain, and operate a qualified
child care center primarily for the children of individuals employed by the
taxpayers, each taxpayer shall be allowed a credit in accordance with
subsection a. of this section for that portion of the costs paid or incurred by
that taxpayer; provided, however, that to be eligible to apply the credit
allowed in accordance with subsection a. of this section to reduce a liability
for tax each taxpayer separately shall make and enter into an agreement with
the director in accordance with subsection b. of this section.
���� d.��� A business entity that
is classified as a partnership for federal income tax purposes shall not be
allowed the credit directly under N.J.S.54A:1-1 et seq., 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.
���� A taxpayer that is a New
Jersey S corporation shall not be allowed the credit directly under
N.J.S.54A:1-1 et seq., 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.���� The order of priority
of the application of the credit allowed in accordance with subsection a. of
this section and any other credits allowed by law against the tax otherwise due
for the taxable year under N.J.S.54A:1-1 et seq. shall be as prescribed by the
director.
���� f.���� As used in this
section:
���� �Grow NJ Kids� means New
Jersey�s quality rating improvement system designed to raise the quality of
child care and early learning programs.
���� �Highly compensated employee�
means the individuals employed by the taxpayer who, in the aggregate, receive
the top 25 percent of all employee compensation paid by the taxpayer.
���� �Qualified child care center�
means a facility that is licensed as a child care center by the Department of
Children and Families in accordance with the �Child Care Licensing Act,�
P.L.1983, c.492 (C.30:5B-1 et seq.), and participates in Grow NJ Kids; provided
however, that a �qualified child care center� shall not include a facility
licensed by the department if:
���� the principal use of the
facility is for some purpose other than the care, development, and supervision
of children, unless the facility is the principal residence of the person who
owns and operates the qualified child care center;
���� the facility is not used on a
regular basis to provide for the care, development, and supervision of
children;
���� enrollment in the facility is
not open to children of individuals employed by the taxpayer; or
���� use of the facility is limited
or restricted under procedures, criteria, or other systems of selection that
unfairly discriminate in favor of highly compensated employees, or that
unfairly discriminate in favor of individuals employed by the taxpayer on the
basis of race, creed, religion, sex, national origin, disability, or marital
status.
���� 4.��� a.� For the three
taxable years following the effective date of P.L.��� �, c. ���(C. �������)
(pending before the Legislature as this bill), a taxpayer 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 an amount equal to:
���� 50 percent of up to $50,000 of
expenses paid or incurred by the taxpayer during the taxable year to conduct,
maintain, and operate a qualified child care center of the taxpayer that is
used primarily by the children of individuals employed by the taxpayer;
���� 50 percent of up to $50,000 of
the amount paid by the taxpayer during the taxable year to another person to
conduct, maintain, and operate, under contract or agreement with the taxpayer,
a qualified child care center of the taxpayer that is used primarily by the
children of individuals employed by the taxpayer;
���� 50 percent of up to $50,000 of
the amount paid by the taxpayer during the taxable year to another person,
under contract or agreement with the taxpayer, for the provision of child care
to children of individuals employed by the taxpayer at a qualified child care
center; or
���� 10 percent of up to $50,000 of
the cost paid or incurred by the taxpayer during the taxable year for the
provision, by the taxpayer or by another person under contract or agreement
with the taxpayer, of qualified child care information and referral services to
individuals employed by the taxpayer.
���� b.��� If two or more taxpayers
jointly pay or incur costs or jointly pay amounts eligible for the credit
allowed in accordance with subsection a. of this section during the taxable
year, each taxpayer shall be allowed a credit for that portion of the costs paid
or incurred by that taxpayer or that portion of the amounts paid by that
taxpayer.
���� c.���� A business entity that
is classified as a partnership for federal income tax purposes shall not be
allowed the credit directly under N.J.S.54A:1-1 et seq., 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.
���� A taxpayer that is a New
Jersey S corporation shall not be allowed the credit directly under
N.J.S.54A:1-1 et seq., 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.
���� d.��� The order of priority of
the application of the credit allowed in accordance with subsection a. of this
section and any other credits allowed by law against the tax otherwise due for
the taxable year under N.J.S.54A:1-1 et seq. shall be as prescribed by the
director.
���� e.���� As used in this
section:
���� �Grow NJ Kids� means New
Jersey�s quality rating improvement system designed to raise the quality of child
care and early learning programs.
���� �Highly compensated employee�
means the individuals employed by the taxpayer who, in the aggregate, receive
the top 25 percent of all employee compensation paid by the taxpayer.
���� �Qualified child care center�
means a facility that is licensed as a child care center by the Department of
Children and Families in accordance with the �Child Care Licensing Act,�
P.L.1983, c.492 (C.30:5B-1 et seq.), and participates in Grow NJ Kids; provided
however, that a �qualified child care center� shall not include a facility
licensed by the department if:
���� the principal use of the
facility is for some purpose other than the care, development, and supervision
of children, unless the facility is the principal residence of the person who
owns and operates the qualified child care center;
���� the facility is not used on a
regular basis to provide for the care, development, and supervision of
children;
���� enrollment in the facility is
not open to children of individuals employed by the taxpayer; or
���� use of the facility is limited
or restricted under procedures, criteria, or other systems of selection that
unfairly discriminate in favor of highly compensated employees, or that
unfairly discriminate in favor of individuals employed by the taxpayer on the
basis of race, creed, religion, sex, national origin, disability, or marital
status.
���� �Qualified child care
information and referral services� means services that, at a minimum, identify
local child care services, provide information describing local child care
services available to individuals employed by the taxpayer, and make referrals
of individuals employed by the taxpayer to appropriate child care services when
openings are available.
���� 5.��� This act shall take
effect immediately.
STATEMENT
���� This bill provides businesses
with credits against the corporation business tax and the gross income tax for
certain employer-provided child care expenditures. The bill allows the tax
credits for the three calendar years beginning after enactment.
���� The bill permits businesses
subject to the corporation business tax or the gross income tax to apply a
credit against the tax liability otherwise due for a percentage of up to
$50,000 of eligible expenditure made to acquire, construct, reconstruct,
renovate, or otherwise improve real property to be used as a qualified child
care center.� The bill also permits businesses to apply a separate, additional
credit for a percentage of up to $50,000 of eligible expenditures made in
connection with the provision of certain child care services.
���� The bill provides that the
amount of the credit allowed for the construction of a child care center is
equal to 50 percent of up to $50,000 of the cost paid or incurred by a business
to acquire, construct, reconstruct, renovate, or otherwise improve real
property in this State that is to be used by the business, or another person
under contract or agreement with the business, to conduct, maintain, and
operate a qualified child care center primarily for the children of individuals
employed by the business.
���� The bill provides that the
amount of the credit allowed for the provision of child care services is equal
to:
���� -- 50 percent of up to $50,000
of the cost paid or incurred by a business to conduct, maintain, and operate a
qualified child care center of the business that is used primarily by the
children of individuals employed by the business;
���� -- 50 percent of up to $50,000
of the amount paid by a business to another person to conduct, maintain, and
operate, under contract or agreement with the business, a qualified child care
center of the business that is used primarily by the children of individuals
employed by the business;
���� -- 50 percent of up to $50,000
of the amount paid by a business to another person under contract or agreement
with the business, for the provision of child care to children of individuals
employed by the business at a qualified child care center; or
���� -- 10 percent of up to $50,000
of the cost paid or incurred by a business for the provision, by the business
or by another person under contract or agreement with the business, of
qualified child care information and referral services to individuals employed
by the business.
���� The bill provides that to be
eligible to apply the credit for the construction of a child care center a
business must make and enter into an agreement with the Director of the
Division of Taxation in the Department of the Treasury. The bill specifies that
the agreement must require the business to demonstrate the intended use and
status of the real property acquired, constructed, reconstructed, renovated, or
otherwise improved in this State, and require the business to use that property
to conduct, maintain, and operate a qualified child care center primarily for
the children of individuals employed by the business for a 60-month period.
���� The bill defines a �qualified
child care center� as a facility that is licensed as a child care center by the
Department of Children and Families, and participates in Grow NJ Kids, but
specifically excludes from that definition facilities licensed by the
department if: the principal use of the facility is for some purpose other than
the care, development, and supervision of children; the facility is not used on
a regular basis to provide for the care, development, and supervision of
children; enrollment in the facility is not open to children of individuals
employed by the business claiming the credit; or use of the facility is limited
or restricted under procedures, criteria, or other systems of selection that
unfairly discriminate.
���� The purpose of this bill is to
encourage New Jersey businesses to take a more active role in the provision of
child care to employees and their children. Businesses that are active in
providing child care typically have a more engaged and productive workforce and
play an integral part in reducing the overall demand for quality, affordable
child care in this State. �