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S3517 • 2026

Allows corporation business tax credit for subcontracting work to NJ small businesses.

Allows corporation business tax credit for subcontracting work to NJ small businesses.

Budget Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Bucco, Anthony M.
Last action
2026-02-12
Official status
Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Allows corporation business tax credit for subcontracting work to NJ small businesses.

Allows corporation business tax credit for subcontracting work to NJ small businesses.

What This Bill Does

  • Allows corporation business tax credit for subcontracting work to NJ small businesses.
  • Topic: Budget and Appropriations Fiscal note: This bill has been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-02-12 New Jersey Legislature

    Introduced in the Senate, Referred to Senate Budget and Appropriations Committee

Official Summary Text

Allows corporation business tax credit for subcontracting work to NJ small businesses.
Topic:
Budget and Appropriations
Fiscal note:
This bill has been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text 
S3517

SENATE, No. 3517

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

Co-Sponsored by:

Senator Henry

SYNOPSIS

���� Allows corporation business tax credit for
subcontracting work to NJ small businesses.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
allowing a corporation business tax credit for
subcontracting work to NJ small businesses, supplementing P.L.1945, c.162 (C.
54:10A-1 et seq.).

����
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 imposed
pursuant to
section 5 of P.L.1945, c.162 (C.54:10A-5)
in an amount equal to one
percent of the amount the taxpayer paid to a New Jersey small business for
subcontracted work performed in New Jersey during the privilege period.

���� As used in this section:

���� �New Jersey small business�
means a business entity or person located in New Jersey, with fewer than 50
total employees. A �New Jersey small business� shall not include any business
entity or person that is an affiliate, subsidiary, or under the control of the
taxpayer.

���� �Subcontracted work� means the
work that the taxpayer subcontracts to a New Jersey small business for
performance of all or an element of the taxpayer�s own contracted duties.

���� b.���
The
director shall prescribe 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).
The
amount of the credit allowed pursuant to this section, when taken together with
any other credits allowed, 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).

���� c.���� The director shall
promulgate procedures by which a taxpayer may certify that the taxpayer
qualifies for the credit allowed pursuant to this section.

���� 2.��� This act shall take
effect immediately and apply to privilege periods beginning after enactment.

STATEMENT

���� This bill allows taxpayers
subject to the corporation business tax to claim a credit against that tax
equal to one percent of the amount the taxpayer paid to New Jersey small
businesses for subcontracted work.

���� For purposes of the credit,
subcontracted work is that work which the taxpayer subcontracts to New Jersey
small businesses for performance of all or an element of the taxpayer�s own
contracted duties. In addition, the subcontracted work must be performed in New
Jersey and the subcontractor must have less than 50 employees.