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S3687
SENATE, No. 3687
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 24, 2026
Sponsored by:
Senator� ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
���� Allows tax credits for employing members of NJ
National Guard and members of reserve component of US Armed Forces.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
allowing tax credits for employing members of the New
Jersey National Guard and members of the reserve component of the Armed Forces
of the United States, supplementing
P.L.1945, c.162 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.� 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 calculated pursuant to subsection b. of this
section for employing qualified service members during the privilege period.
���� b.� The credit allowed
pursuant to this section shall be: $1,500 for each qualified service member who
is employed by the taxpayer and who has not completed or returned from a
deployment or activation; and $2,500 for each qualified service member who is employed
by the taxpayer and who has completed or returned from a deployment or
activation.
���� c. �The director shall
prescribe the order of priority of the application of the credit allowed under
this section and any other credits allowed by law against the tax imposed under
section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the credit applied under
this section against the tax imposed pursuant to section 5 of P.L.1945, c.162
(C.54:10A-5) for a privilege period, together with any other credits allowed by
law, 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).
���� d.� As used in this section,
�qualified service member� means a member of the New Jersey National Guard or
the reserve component of the Armed Forces of the United States.
���� 2.� a.� 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 calculated pursuant to subsection b. of this section for employing
qualified service members during the taxable year.
���� b.� The credit allowed
pursuant to this section shall be: $1,500 for each qualified service member who
is employed by the taxpayer and who has not completed or returned from a
deployment or activation; and $2,500 for each qualified service member who is employed
by the taxpayer and who has completed or returned from a deployment or
activation.
���� c. �The director shall prescribe
the order of priority of the application of the credit allowed under 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. The amount of the credit applied
under this section against the tax imposed under N.J.S.54A:1-1 et seq. for the
taxable year, together with any other credits allowed by law, shall not reduce
the tax liability to an amount less than zero.
���� 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. �� As used in this section,
�qualified service member� means a member of the New Jersey National Guard or
the reserve component of the Armed Forces of the United States.
���� 3.��� Notwithstanding any
provision of the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et
seq.), to the contrary, the Director of the Division of Taxation in the
Department of the Treasury is authorized to adopt immediately upon filing with
the Office of Administrative Law such rules and regulations necessary to
implement this act, including, but not limited to, rules and regulations
specifying documentation and verification related to a claim for a tax credit
for employing qualified service members. The rules and regulations adopted
pursuant to this section shall be effective for a period not to exceed 18
months following the date of filing and may thereafter be amended, adopted, or
readopted by the director in accordance with the requirements of P.L.1968,
c.410 (C.52:14B-1 et seq.).
���� 4.��� This act shall take
effect immediately and apply to privilege periods and taxable years beginning
on and after the date of enactment.
STATEMENT
���� This bill allows a
corporation business tax credit or a gross income tax
credit for employing members of the New Jersey National Guard or the reserve
component of the Armed Forces of the United States.
The credit amount
is: $1,500 for each member who is employed by the taxpayer and who has not
completed or returned from a deployment or activation; and $2,500 for each
member who is employed by the taxpayer and who has completed or returned from a
deployment or activation.