"New Jersey Works Act"; permits businesses to apply for tax credits for establishing approved pre-employment and work readiness training programs in partnership with schools, nonprofit organizations, or educational institutions.

S3593

SENATE, No. 3593

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

Senator� TROY SINGLETON

District 7 (Burlington)

Co-Sponsored by:

Senators Turner, McKnight and Space

SYNOPSIS

���� "New Jersey Works Act"; permits businesses
to apply for tax credits for establishing approved pre-employment and work
readiness training programs in partnership with schools, nonprofit
organizations, or educational institutions.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning pre-employment training programs,
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.��� This act shall be known
and may be cited as the �New Jersey Works Act.�

����� 2.�� As
used in sections 1 through 4 of P.L.��� , c.�� (C.������ ) (pending before the
Legislature as this bill):

����� �Agreement�
means an agreement between one or more business entities and one or more
institutions of higher education, comprehensive high schools, county vocational
schools, or nonprofit organizations to establish a pre-employment and work
readiness training program.�� �Assistance� means the contribution of moneys to
aid in the provision of a pre-employment and work readiness training program
established by a business entity in partnership with an institution of higher
education or a comprehensive high school or county vocational school or
nonprofit organization.

����� �Business
entity� means any corporation, company, association, society, firm,
partnership, joint stock company, sole proprietorship, limited liability entity
or individual which is authorized to conduct or operate a trade or business in
the State. �Business entity� shall not include any business entity engaged in a
construction trade.

����� �Comprehensive
high school� means a public or non-public high school located in the State that
may grant a State-endorsed diploma to students and offers approved career and
technical education programs of study.

����� �Department�
means the Department of Labor and Workforce Development.

����� �Director�
means the Director of the Division of Taxation in the Department of the
Treasury.

����� �Educational
institution� means an institution of higher education, a comprehensive high
school, or a county vocational school.

����� �Institution
of higher education� means any public or independent four-year institution of
higher education or a county college

����� �Labor
demand occupation� means an occupation in which the Center for Occupational
Employment Information has determined, pursuant to subsection d. of section 27
of P.L.2005, c.354 (C.34:1A-86):

����� a.
is or will be, on regional basis, subject to a significant excess of demand
over supply for trained workers, based on a comparison of the total need or
anticipated need for trained workers with the total number being trained; or

����� b.�
in conjunction with a Workforce Investment Board, is or will be, in the region
for which the board is responsible, subject to a significant excess of demand
over supply for adequately trained workers, based on a comparison of total need
or anticipated need for trained workers with the total number being trained.

����� �Low
income household� means a household whose gross household income is less than
50 percent of the median gross household income for the region in which the
business entity is located for households of similar size as determined by the
department.

����� �Moderate
income household� means a household whose gross household income is greater
than or equal to 50 percent but less than 80 percent of the median gross
household income of the region in which the business entity is located for
households of similar size as determined by the department.

����� �Nonprofit
organization� means a private nonprofit corporation that has been determined by
the Internal Revenue Service of the United States Department of the Treasury to
be exempt from income taxation pursuant to section 501(c)(3) of the federal
Internal Revenue Code, 26 U.S.C. s.501(c)(3).

����� �State
Eligible Training Provider List� means the Statewide list of eligible training
providers maintained pursuant to section 14 of P.L.2005, c.354 (C.34:15C-10.2).

����� 3.�� a.�
One or more institutions of higher education, comprehensive high schools,
county vocational schools, or nonprofit organizations may enter into an
agreement

with a business entity to establish a pre-employment and work
readiness training program.� The purpose of the program shall be to recruit,
prepare, and educate individuals for in-demand jobs with long-term career
potential in a labor demand occupation through paid training programs.� The
program shall target for recruitment low- and moderate-income households and
current workers in need of skills development.� A business entity may provide
assistance for a pre-employment and work readiness training program if the
program is approved by the department pursuant to section 4 of P.L.��� , c.���
(C. ) (pending before the
Legislature as this bill) and may receive a credit for such assistance pursuant
to section 6 or 7 of P.L. , c.���� (C.������� or
C.������ ) (pending before the Legislature as this bill).

����� b.�� Each
pre-employment and work readiness training program shall offer� no less than 12
weeks of paid training for each participant, and include, but not be limited to
training and instruction in the following areas:� basic math and English
literacy, communication skills, critical thinking, leadership, life skills and
job readiness skills training such as conflict management, finance concepts,
resume preparation, problem solving, self-awareness and management, and any
other requirement deemed necessary by the department. Each pre-employment and
work readiness training program participant shall be paid the minimum wage
pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4) or any order issued by
the Commissioner of Labor and Workforce Development pursuant to that act.

����� c.�� Each
pre-employment and work readiness training program established pursuant to
P.L.��� , c.��� (C.������ ) (pending before the Legislature as this bill) shall
comply with all child labor laws and regulations, including, but not limited to
N.J.A.C.12:58-1.1 et seq., N.J.A.C.12:56-18.1 et seq., and N.J.A.C.6A:19-1.1 et
seq.� Each trainee shall be a minimum of 16 years old.� An educational
institution or nonprofit organization shall not determine a trainee�s
eligibility for participation in a training program based on the trainee�s
possession of a high school diploma or any high school equivalency.� Following
the successful completion of a pre-employment and work readiness training
program, each program shall offer trainees employment provided through a business
entity which has provided funding for a qualified pre-employment and work
readiness training program, or both.

����� d.�� Any
institution of higher education, comprehensive high school, county vocational
school, or nonprofit organization that enters into an agreement

with a
business entity to establish a pre-employment and work readiness training
program shall be an approved training provider included on the State Eligible
Training Provider List.

����� e.�
Each educational institution or nonprofit organization shall submit to the
department the following information three months, six months, and nine months
following the close of a training program: the number of participants who
successfully completed the training program and the number of participants
currently employed by a business entity, including each participant�s job title
and salary.

����� 4.�� a.�
An institution of higher education, comprehensive high school, county
vocational school, or nonprofit organization which has entered into an
agreement under section 3 of P.L.��� , c.��� (C.��� ) (pending before the
Legislature as this bill) with a business entity shall submit a proposed
pre-employment and work-readiness training plan to the department for
approval.� Two or more institutions of higher education, comprehensive high
schools, county vocational schools, or nonprofit organizations may submit a
plan to the department jointly.� Any plan submitted by two or more institutions
of higher education, comprehensive high schools, vocational schools, or
nonprofit organizations shall designate one institution of higher education,
comprehensive high school, vocational school, or nonprofit organization as the
lead organization with responsibility for the plan.� An institution of higher
education, comprehensive high school, county vocational school, or nonprofit
organization that has proposed a pre-employment and work-readiness training
plan to the department may seek to amend it at any time.� The department shall
approve the amendments so long as the pre-employment and work readiness
training plan complies with the minimum requirements set forth in subsection c.
of this section.

����� b.�� The
department shall review a proposed pre-employment and work-readiness training
plan to make an initial determination as to

whether a proposed pre-employment and work readiness
training program qualifies for assistance for which a tax credit may be granted
pursuant to section 6 or section 7 of P.L.��� , c.��� (C.������� or C.������� )
(pending before the Legislature as this bill).� Upon the department�s initial
determination of qualification, the department shall refer the proposed program
and application to the Director of Taxation in the Department of the Treasury
for final approval, and the Treasury shall notify the department of the final
approval.

����� c.�� The
department shall determine that a proposed plan for a pre-employment and work
readiness training program qualifies for assistance if the plan meets all of
the following standards:

����� (1)� The
proposed program consists of pre-employment and work readiness training
activities to benefit low- and moderate-income households and persons in need
of early and mid-career skills training or vocational retraining.

����� (2)� The
proposed program is reasonably designed to accomplish its intended purpose and
it would further the purposes of the pre-employment and work-readiness training
plan.

����� (3)� The
educational institution or nonprofit organization demonstrates that it has the
capacity to implement the proposed pre-employment and work-readiness training
plan.

����� (4)� The
educational institution or nonprofit organization ensures supervision and
placement by a trained work-based learning coordinator, if the student is
enrolled in a secondary education school-sponsored work-based learning
experience.

����� (5)� The
educational institution or nonprofit organization provides documentation of its
completion rates.

����� 5.�
The Department of Labor and Workforce Development shall consult with the
Department of Education regarding the development of, and may consult with the
Department of Education regarding the approval and implementation of,
pre-employment and work readiness training programs for students enrolled in
secondary education school-sponsored work-based learning experiences.

����� 6.�� a.�
A taxpayer, upon final approval of an application by the director, 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 100 percent of the amount of
assistance provided by the taxpayer to an institution of higher education,
comprehensive high school, county vocational school, or nonprofit organization
during a privilege period commencing on or after January 1 next following the
enactment of P.L. , c. (C. ) (pending
before the Legislature as this bill) for an approved pre-employment and work
readiness training program established in agreement with an institution of
higher education, comprehensive high school, county vocational school, or
nonprofit organization pursuant to section 3 of P.L.��� , c.�� (C.������ )
(pending before the Legislature as this bill).

����� b.�� No
tax credit shall be awarded pursuant to this section for any costs or expenses
included in the calculation of any other tax credit or exemption 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.� The order of priority of application of
the tax 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 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).

����� c.�� The
value of tax credits approved by the director pursuant to subsection a. of this
section and pursuant to subsection a. of section 7 of P.L.��� , c.��� (C.������
) (pending before the Legislature as this bill) shall not exceed a cumulative
total of $2,000,000 in State fiscal year 2026, and in each State fiscal year
thereafter, to apply against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5) and the tax imposed pursuant to the �New Jersey Gross Income
Tax Act,�� N.J.S.54A:1-1 et seq.� If the cumulative total amount of tax credits
allowed to taxpayers for privilege periods or taxable years commencing during a
single fiscal year under subsection a. of this section and subsection a. of
section 7 of P.L.��� , c.��� (C.������ ) (pending before the Legislature as
this bill) exceeds the amount of tax credits available in that fiscal year,
then taxpayers who have first applied for and have not been allowed a tax
credit for that reason shall be allowed, in the order in which they have
submitted an application, the amount of the tax credit on the first day of the
next succeeding fiscal year in which tax credits under subsection a. of this
section and subsection a. of section 7 of
P.L. , c. (C. )
(pending before the Legislature as this bill) are not in excess of the amount
of credits available.

����� d.�� A
taxpayer shall submit to the director a report to verify the taxpayer�s tax
credit claim.� The report shall include a certification from an institution of
higher education, a comprehensive high school, a county vocational school, or a
nonprofit organization that the assistance was used for an approved
pre-employment and work readiness training program, and shall include such
other information as the director may require.� The certification shall be
provided to the taxpayer and a copy of the certification shall be included in
the filing of a return that includes a claim for a tax credit allowed pursuant
to this section.

����� 7.�� a.�
A taxpayer, upon approval of an application to the director, 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 100 percent
of the amount of assistance provided by the taxpayer to an institution of
higher education, comprehensive high school, county vocational school, or
nonprofit organization during a taxable year commencing on or after January 1
next following the enactment of P.L.�� �, c.��� (C.������ ) (pending before the
Legislature as this bill) for an approved pre-employment and work readiness
training program established in agreement with an educational institution� or a
nonprofit organization pursuant to section 3 of P.L. , c. (C. )
(pending before the Legislature as this bill).

����� b.�� No
tax credit shall be allowed pursuant to this section for any costs or expenses
included in the calculation of any other tax credit or exemption 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 the time that coincides with the taxable year, for which a tax credit
authorized pursuant to this section is allowed.� 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 N.J.S.54A:1-1 et seq. for a
taxable year, shall be as prescribed by the director.� The amount of the credit
applied against the New Jersey gross income tax imposed pursuant to
N.J.S.54A:1-1 shall not reduce a taxpayer�s tax liability to an amount less
than zero.

����� c.�� (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 a 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.

����� d.�� The
value of tax credits approved by the director pursuant to subsection a. of this
section and pursuant to subsection a. of section 6 of P.L.��� , c.�� (C.������
) (pending before the Legislature as this bill) shall not exceed a cumulative
total of $2,000,000 in State fiscal year 2026 and in State each fiscal year
thereafter to apply against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5) and the tax imposed pursuant to the �New Jersey Gross Income
Tax Act,� N.J.S.54A:1-1 et seq.� If the cumulative total amount of tax credits
allowed to taxpayers for taxable years or privilege period commencing during a
single fiscal year under subsection a. of this section and subsection a. of
section 6 of P.L. , c.��� (C.������� ) (pending before
the Legislature as this bill) exceeds the amount of tax credits available in
that fiscal year, then taxpayers who have first applied for and have not been
allowed a tax credit for that reason shall be allowed, in the order in which
they have submitted an application, the amount of tax credit on the first day
of the next succeeding fiscal year in which tax credits under subsection a. of this
section and subsection a. of section 6 of
P.L. , c. (C. )
(pending before the Legislature as this bill) are not in excess of the amount
of credits available.

����� e.�� A
taxpayer shall submit to the director a report to verify the taxpayer�s tax
credit claim.� The report shall include a certification from an institution of
higher education, a comprehensive high school, a county vocational school, or a
nonprofit organization that the assistance was used for an approved
pre-employment and work readiness training program, and shall include such
other the director may require.� The certification shall be provided to the
taxpayer and a copy of the certification shall be included in the filing of a
return that includes a claim for a tax credit allowed pursuant to this section.

���
8.
�� Following
two years from the effective date of this act, the Department of State shall
prepare, or cause to be prepared, an appropriate study and analysis of the
efficacy of the training programs and tax credits, including but not limited
to, employment and education outcomes of participants and the costs and
benefits of the programs and tax credits to the State. Upon its completion,
copies of the report shall be transmitted to the Governor and the Legislature
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).

����� 9.�� The
Commissioner of Labor and Workforce Development shall, in consultation with the
Director of the Division of Taxation and the Commissioner of Education, 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.

�������
10. This act shall take effect 180 days following
the date of enactment,

and
sections 6 and 7 shall apply to privilege periods and taxable years beginning
on or after the January 1 next following the date of enactment.

STATEMENT

���� This bill, titled the �New
Jersey Works Act,� incentivizes businesses to establish pre-employment and work
readiness training programs which recruit, prepare, and educate individuals for
in-demand jobs with long-term career potential in a labor demand occupation.�
Under the bill, a business may receive a credit against the corporation
business tax or gross income tax for 100 percent of the financial assistance
provided to support a qualified pre-employment and work readiness training
program approved by the Department of Labor and Workforce Development
(department).� Businesses engaged in a construction trade are excluded from
participating in the bill�s training programs.

���� The bill authorizes the award
of $2 million in tax credits per State fiscal year to taxpayers that have
established an approved pre-employment and work readiness training program with
an institution of higher education, a comprehensive high school, a vocational
school, or a nonprofit organization.�

���� The bill requires an
educational institution or nonprofit organization which enters an agreement
with a business entity to establish a training program to submit a proposed
pre-employment and work readiness and training plan to the department for
approval.� Each pre-employment and work readiness training program must offer
no less than 12 weeks of paid training, at the minimum wage for each
participant, and include, but not be limited to, instruction and training in
the following areas:� basic math and English literacy, communication skills,
critical thinking, leadership, life skills, and job readiness skills training,
such as conflict management, finance concepts, resume preparation, problem
solving, self-awareness, and management, and any other training deemed
necessary by the department.� A single pre-employment training plan may be
submitted by multiple educational institutions or nonprofit organizations, but
the plan must designate one entity as the lead organization with responsibility
for the plan.

���� Under the bill, program
participants are required to be at least 16 years old.� An educational
institution or nonprofit organization may not determine a trainee�s eligibility
for participation in the training program based on the trainee�s possession of either
a high school diploma or a high school equivalency.� Each program would offer
trainees employment with a business entity which has provided funding for a
qualified pre-employment and work readiness training program.

���� The bill requires the
department to review each proposed pre-employment and work readiness training
plan to make an initial determination of whether the proposed training program
qualifies for financial assistance based on whether the program:

���� 1. consists of pre-employment
and work readiness training activities to benefit low- and moderate-income
households and persons in need of mid-career skills training or vocational
retraining; and

���� 2. is reasonably designed to
accomplish its intended purpose and further the purposes of the proposed
training plan.

���� Additionally, the educational
institution or nonprofit organization would be required to demonstrate that it
has the capacity to implement the plan, ensure that financial assistance will
be expended exclusively to implement the plan, and provide documentation of its
completion rates.

���� If the department makes an
initial determination that a proposed plan qualifies under the program
guidelines, the department would refer the proposal to the Director of the
Division of Taxation for final approval, and the director would notify the
department of a final approval.

���� The bill requires the
Department of State to conduct a study of the efficacy of the training programs
and tax credits following two years from the date of enactment of the bill and
report the findings to the Governor and the Legislature.