Establishes "New Jersey Earn and Learn Program;" provides tax credits for employers providing structured apprenticeships and paid internships.

S3214 1R

[First Reprint]

SENATE, No. 3214

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JANUARY 28, 2026

Sponsored by:

Senator� TROY SINGLETON

Senator� JAMES BEACH

District 6 (Burlington and Camden)

District 7 (Burlington)

Co-Sponsored by:

Senators McKnight and Turner

SYNOPSIS

���� Establishes �New Jersey Earn and Learn Program;�
provides tax credits for employers providing structured apprenticeships and
paid internships.

CURRENT VERSION OF TEXT

���� As reported by the Senate Labor Committee on March 2,
2026, with amendments.

��

An Act

providing apprenticeship and internship tax
credits and supplementing P.L.1992, c.43 (C.34:15D-1 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.� There is established
in the Department of Labor and Workforce Development, in consultation with the
Department of Education and the New Jersey Economic Development Authority, a
�New Jersey Earn and Learn Program� to provide tax credits to encourage apprenticeships
and paid internships that lead to permanent employment.

���� b.��� The program shall:

���� (1)�� provide an incentive to
employers to hire individuals into apprenticeships and paid internships that
lead to permanent employment;

���� (2)�� inform employers of the
tax credit program established pursuant to this act; and

���� (3)�� be limited to a
three-year duration per individual enrollee.

���� c.���� The commissioner, in
consultation with the Director of the Division of Taxation, shall certify
employer eligibility and program participation for the tax credit established
pursuant to sections 2 and 3 of this act, and shall adopt rules and regulations
pursuant to the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.) to effectuate the purposes of this act and to prevent the duplication of
benefits across State workforce development programs.

���� d.��� An employer subject to
the provisions of this act may apply for the tax credits established pursuant
to sections 2 and 3 of this act.� A tax credit allowed pursuant to this act
shall be the amount provided in sections 2 and 3 of this act against the
corporation business tax imposed pursuant to section 5 of P.L.1945, c.162
(C.54:10A-5) or the gross income tax imposed pursuant to the "New Jersey
Gross Income Tax Act," N.J.S.54A:1-1 et seq., whichever of the two taxes
is applicable to the employer.

���� e.����
1
Notwithstanding
any law or regulation to the contrary, a building and construction trade
business shall not be eligible to receive a tax credit under the �New Jersey
Earn and Learn Program� established pursuant to this act.

����
f.
1
�� As
used in this section:

���� �Apprenticeship� means
apprenticeship in a program providing to each trainee combined classroom and
on-the-job training under the direct and close supervision of a highly skilled
worker, and registered by the Office of Apprenticeship of the United States
Department of Labor and meeting the standards established by that office.

����
1
�Building
and construction trade business� means any employer engaged in activities
classified within Sector 23 (Construction) of the North American Industry
Classification System, including but not limited to, residential and commercial
building construction, heavy and civil engineering construction, and specialty
trade contractors.
1

���� "Commissioner" means
the Commissioner of Labor and Workforce Development.

���� "Enrollee" means any
individual engaged in apprenticeship or internship activities under the
program.

���� �Internship� means a
structured learning experience designed for career exploration that includes
supervised practical training, with pay, that complies with applicable federal
and State wage and hour requirements.

���� �Program� means the �New
Jersey Earn and Learn Program� established pursuant to this act.

���� 2.��� a.� For privilege
periods beginning in 2027, 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 $3,000 for each individual enrolled in an apprenticeship or internship
pursuant to the program established in section 1 of this act.

���� b.��� An additional credit
against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5)
in an amount equal to $1,000 shall be allowed if:

���� (1) the business employs fewer
than 100 employees;

���� (2) the enrollee belongs to a
member of a protected class, based on race, color, religion, national origin,
sex, sexual orientation, disability, or age, that is underrepresented in the
career field of the apprenticeship or internship; or

���� (3) the business is owned by
an individual, or has ownership of greater than or equal to 50 percent, which
belongs to a member of a protected class, based on race, color, religion,
national origin, sex, sexual orientation, disability, or age, that is underrepresented
in the business field.

���� c.���� An additional credit
against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5)
in an amount equal to $1,000 shall be allowed if:

���� (1)�� the enrollee in an
apprenticeship:

���� (a)�� completes the
apprenticeship certification requirements;

���� (b)�� is converted to
full-time employment within 12 months after the completion of the
apprenticeship;

���� (c)�� earns a salary
commensurate with other workers holding similar certifications and work
experience; and

���� (d)�� maintains full-time
employment with the business for a period of six months; or

���� (2) the enrollee in an
internship:

���� (a)�� is hired by the
business to full-time employment within 12 months after the completion of the
internship;

���� (b)�� is paid a salary
commensurate with other workers holding similar qualifications and work
experience; and

���� (c)�� maintains full-time
employment with the business for a period of six months.

���� d.��� The total value of
credits claimed by a taxpayer under this section shall not exceed $500,000 in a
taxable year.

���� e.���� 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), 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).

���� f.���� A taxpayer shall apply
in a form and manner to be determined by the director for the tax credit
provided pursuant to this section.

���� g.��� As used in this section:

���� �Apprenticeship� means
apprenticeship in a program providing to each trainee combined classroom and
on-the-job training under the direct and close supervision of a highly skilled
worker, and registered by the Office of Apprenticeship of the United States
Department of Labor and meeting the standards established by that office.

���� "Enrollee" means any
individual engaged in apprenticeship or internship activities under the
program.

���� �Internship� means a
structured learning experience designed for career exploration that includes
supervised practical training, with pay, provided the internship complies with
applicable federal and State wage and hour requirements.

���� �Program� means the �New
Jersey Earn and Learn Program� established pursuant to section 1 of this act.

���� 3.��� a.� For taxable years
beginning in 2027, a taxpayer shall be allowed a credit against the New Jersey
gross income tax due pursuant to N.J.S.54A.1-1 et seq. in an amount equal to
$3,000 for each individual enrolled in an apprenticeship or internship pursuant
to the program established in section 1 of this act.

���� b.��� An additional credit
against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq.
in an amount equal to $1,000 shall be allowed if:

���� (1)�� the business employs
fewer than 100 employees; or

���� (2)�� the enrollee belongs to
a member of a protected class, based on race, color, religion, national origin,
sex, sexual orientation, disability, or age, that is underrepresented in the
career field of the apprenticeship or internship; or

���� (3)�� the business is owned by
an individual, or has ownership of greater than or equal to 50 percent, which
belongs to a member of a protected class, based on race, color, religion,
national origin, sex, sexual orientation, disability, or age, that is
underrepresented in the career field.

���� c.���� An additional credit
against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq.
in an amount equal to $1,000 shall be allowed for each enrollee if:

���� (1)�� the enrollee in an
apprenticeship:

���� (a)�� completes the
apprenticeship certification requirements;

���� (b)�� is converted to
full-time employment within 12 months after the completion of the
apprenticeship;

���� (c)�� earns a salary
commensurate with other workers holding similar certifications and work
experience; and

���� (d)�� maintains full-time
employment with the business for a minimum of six months; or

���� (2)�� the enrollee in an
internship:

���� (a)�� is hired by the business
to full-time employment within 12 months after the conclusion of the
internship;

���� (b)�� earns a salary
commensurate with other workers having similar work experience; and

���� (c)�� maintains full-time
employment with the business for a minimum of six months.

���� d.��� The total value of
credits claimed by a taxpayer under this section shall not exceed $500,000 in a
taxable year.

���� e.���� 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 allowed against the New Jersey gross income
tax due pursuant to N.J.S.54A:1-1 et seq., shall not reduce a taxpayer�s tax
liability to an amount less than zero.�
No tax credit
shall be allowed pursuant to this section for any wages and payroll taxes
included in the calculation of any other tax credit granted pursuant to a claim
made on a tax return filed with the director for a period of time that
coincides with the taxable year for which a tax credit authorized pursuant to
this section is allowed.

���� f.���� A
business entity that is classified as a partnership for federal income tax
purposes shall not be allowed the tax 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.

���� g.��� A
taxpayer that is a New Jersey S corporation shall not be allowed the tax 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.

���� h.��� A taxpayer shall apply
in a form and manner to be determined by the director for the tax credit
provided pursuant to this section.

���� i.���� As used in this
section:

���� �Apprenticeship� means
apprenticeship in a program providing to each trainee combined classroom and
on-the-job training under the direct and close supervision of a highly skilled
worker, and registered by the Office of Apprenticeship of the United States
Department of Labor and meeting the standards established by that office.

���� "Enrollee" means any
individual engaged in apprenticeship or internship activities under the
program.

���� �Internship� means a
structured learning experience designed for career exploration that includes
supervised practical training, with pay, provided the internship complies with
applicable federal and State wage and hour requirements.

���� �Program� means the �New
Jersey Earn and Learn Program� established pursuant to section 1 of this act.

���� 4.��� One year after the
effective date of this act, and each year thereafter for the duration of the
program, the Commissioner of Labor and Workforce Development shall submit to
the Governor, and to the Legislature, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), a report that evaluates the results of the program including,
but not limited to, program participation, permanent job placements,
anticipated tax credits deployed, and overall workforce impact.

���� 5.��� This act shall take
effect January 1, 2027 except that the Commissioner of Labor and Workforce
Development and the Director of the Division of Taxation may take any
anticipatory administrative action in advance as shall be necessary for the
implementation of this act.