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S3688
SENATE, No. 3688
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED FEBRUARY 24, 2026
Sponsored by:
Senator� ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
���� Allows corporation business tax and gross income tax
credits to businesses employing released nonviolent offenders.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
allowing credits against the corporation business tax
and the gross income tax to businesses employing certain released nonviolent
offenders and supplementing 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.� 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 15 percent of the wages paid by the
taxpayer during the privilege period for the employment of a released nonviolent
offender, but not to exceed $900 for each released nonviolent offender employed
by the taxpayer during the privilege period.
���� b.� As used in this section, "released
nonviolent offender" means an adult individual who at 18 years of age or
older committed a criminal offense or a disorderly persons offense, other than
an offense included under subsections b. through g. of section 11 of P.L.1971,
c.317 (C.52:4B-11), and other than an offense that involved the use, attempted
use, or threat to use force against another person or property, who after
incarceration or after serving an alternative sentence, has been released to
the community under the supervision of the courts, a paroling authority, a
probation authority, a corrections authority, or other criminal justice agency,
or has successfully completed that community supervision.
���� c.� 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, when taken together with
any other credits allowed against the tax imposed pursuant to section 5 of
P.L.1945, c.162 (C.54:10-5), 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-1 et seq.).� The priority in which credits allowed pursuant to this
section and any other credits shall be taken shall be determined by the
Director of the Division of Taxation.� The amount of the credit otherwise
allowable under this section which cannot be applied for the privilege period
due to the limitations of this subsection or under other provisions of
P.L.1945, c.162 may be carried over, if necessary, to the seven privilege
periods following the privilege period for which the credit was allowed.
���� 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 equal to 15 percent of the wages paid by the taxpayer during the taxable
year for the employment of a released nonviolent offender during the taxable
year, but not to exceed $900 for each released nonviolent offender employed by
the taxpayer during the taxable year.
���� b.� As used in this section,
"released nonviolent offender" means an adult individual who at 18
years of age or older committed a criminal offense or a disorderly persons
offense, other than an offense included under subsections b. through g. of
section 11 of P.L.1971, c.317 (C.52:4B-11), and other than an offense that
involved the use, attempted use, or threat to use force against another person
or property, who after incarceration or after serving an alternative sentence,
has been released to the community under the supervision of the courts, a
paroling authority, a probation authority, a corrections authority, or other
criminal justice agency, or has successfully completed that community
supervision.
���� c.� The amount of the credit
applied pursuant to this section for a taxable year, when taken together with
any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et
seq., shall not exceed 50 percent of the taxpayer's liability for tax for the
taxable year that bears the same proportional relationship to the total amount
of such liability as the amount of the taxpayer's gross income, derived from
New Jersey sources and attributable to the business or professional activity in
which the taxpayer employs the released nonviolent offender during that taxable
year, bears to the taxpayer's entire gross income for that year.� The amount of
the credit otherwise allowable under this section which cannot be applied for
the taxable year due to the limitations of this subsection may be carried over,
if necessary to the seven taxable years following the taxable year for which
the credit was allowed.
���� d.� A business entity that is
classified as a partnership for federal income tax purposes shall not be
allowed a credit under this section directly, but the amount of credit of a
taxpayer in respect of a distributive share of entity income shall be determined
by allocating to the taxpayer that proportion of the 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.
���� e.� A New Jersey S corporation
shall not be allowed a credit directly under the gross income tax, 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.
���� 3.� This act shall take effect
immediately and shall apply to wages paid in privilege periods and taxable
years beginning after enactment.
STATEMENT
���� This bill allows corporation
business tax and gross income tax credits to businesses that employ released
nonviolent adult offenders.� The amount of each credit would be equal to 15
percent of the wages paid to the ex-offender with a maximum of $900 per ex-offender.
���� A released nonviolent offender
is an adult individual who at 18 years of age or older committed a criminal
offense or a disorderly persons offense, other than an offense included under
subsections b. through g. of section 11 of P.L.1971, c.317 (C.52:4B-11)
(dangerous offenses that may be compensated for by the Victims of Crime
Compensation Office), and other than an offense that involved the use,
attempted use, or threat to use force against another person or property, who
after incarceration or after serving an alternative sentence, has been released
to the community under the supervision of the courts, a paroling authority, a
probation authority, a corrections authority, or other criminal justice agency,
or has successfully completed that community supervision.
���� This bill is similar to the
federal Work Opportunity Tax Credit, which provides federal tax breaks for
employers who are willing to hire workers who have a felony conviction in their
background.� This bill is limited to hires of ex-offenders who have less
dangerous and nonviolent offenses in their background and have completed their
terms of incarceration or are under or have completed community supervision.�
It provides these employers with an additional incentive to hire these
ex-offenders, whose employment will aid in their rehabilitation and reentry
into society.�