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S4143
SENATE, No. 4143
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 11, 2026
Sponsored by:
Senator� TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
���� Requires State to permit formation of association
health plan and other multiple employer welfare arrangements; provides tax
credit to members of plan.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning group health plans and health benefits plans
and supplementing P.L.2001, c.352 (C.17B:27C-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. Notwithstanding any
other provision to the contrary, any chamber of commerce, trade association, or
nonprofit business coalition operating in good standing in the State for at
least two years may form an association health plan or other multiple employer
welfare arrangement (MEWA) with its members and shall be subject to all
applicable State and federal laws governing those plans.
���� b. Any member of an
association health plan or MEWA under this subsection shall be entitled to a
tax credit of up to $1,000 per employee per year for any privilege period in
which the member is enrolled in the association health plan or MEWA.
���� c.���� If federal law or
regulation expands the entities that may form association health plans for the
purpose of obtaining group health coverage to be treated as a single employer
for purposes of the federal "Employee Retirement Income Security Act of
1974," 29 U.S.C. s.1001 et seq., and permits those plans to be regulated
under federal law as large-group coverage, the State shall treat any
association health plan that meets the federal criteria as a single employer
that is entitled to large-group coverage under State law.
���� 2.��� a.� The Commissioner of
Banking and Insurance shall develop and implement a public awareness and
outreach campaign to inform chambers of commerce, trade associations, and
nonprofit business coalitions, member businesses, employees, and persons
residing and working in the State about coverage options pursuant to P.L. , c. (C. )(pending
before the Legislature as this bill).� The program shall include the
distribution of written materials in English, Spanish and any language that is
the primary language of 10 percent or more of the registered voters in the
State to all chambers of commerce, trade associations, and nonprofit business
coalitions.� The commissioner shall allocate not less than $500,000 to the
public awareness and outreach campaign, which shall be regarded as a cost of
administration of the public awareness and outreach campaign.
���� b.��� The Department of
Banking and Insurance may allocate funds to provide grants to chambers of
commerce, trade associations, and nonprofit business coalitions, in a form and
manner to be determined by the Commissioner of Banking and Insurance.� The
purpose of the grants shall be to offset administrative costs of plan
management.
���� 3.��� a.� A taxpayer that is
member of an association health plan or MEWA administered in accordance with
section 1 or 2 of P.L. , c. (C. )(pending
before the Legislature as this bill) shall be allowed a credit against the tax
imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for a privilege
period in an amount up to $1,000 per employee.
���� b.��� The credit allowed
pursuant to this section shall not exceed $20,000 annually for each taxpayer
per privilege period.
���� c.���� The order of priority
of the application of the credit allowed pursuant to this section and any other
credits allowed by law shall be as prescribed by the director.� 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 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).�
���� d.��� The amount of the tax
credit otherwise allowable under this section which cannot be applied for the
privilege period may be carried forward, if necessary, to the four privilege
periods following the privilege period for which a portion of the tax credit was
allowed.
���� e.���� 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 time that
coincides with the privilege period for which a tax credit pursuant to this
section is allowed.
���� 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.��� The credit allowed
pursuant to this section shall only be available for the privilege periods
commencing on or after January 1, 2027.
���� 4.��� a.� A taxpayer that is
member of an association health plan or MEWA administered in accordance with
section 1 or 2 of P.L. , c. (C. )(pending
before the Legislature as this bill) shall be allowed a credit against the tax
otherwise due under the �New Jersey Gross Income Tax Act,� N.J.S.54A:1-1 et
seq., for a taxable year in an amount up to $1,000 per employee.
���� b.��� The credit allowed
pursuant to this section shall not exceed $20,000 annually for each taxpayer
per taxable year.
���� c.���� The amount of the
credit allowed pursuant to this section shall be applied against the tax
otherwise due under the "New Jersey Gross Income Tax Act,"
N.J.S.54A:1-1 et seq., after all other credits and payments.� If the credit
exceeds the amount of tax liability otherwise due, that amount of excess shall
be an overpayment for the purposes of N.J.S.54A:9-7, provided, however, that
subsection (f) of N.J.S.54A:9-7 shall not apply.
���� d.��� 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 time that
coincides with the taxable year, for which a tax credit authorized pursuant to
this section is allowed.
���� e.���� (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 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.
���� 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.��� The credit allowed
pursuant to this section shall only be available for the taxable years
commencing on or after January 1, 2027.
���� 5.��� This act shall take
effect on January 1st next following the date of enactment, except that the
Commissioner of Banking and Insurance may take any anticipatory administrative
action in advance as shall be necessary for the implementation of this act.
STATEMENT
���� This bill provides that any
chamber of commerce, trade association, or nonprofit business coalition
operating in good standing in the State for at least two years may form an
association health plan or other multiple employer welfare arrangement (MEWA)
with its members and shall be subject to all applicable State and federal laws
governing those plans.
���� The bill provides that if
federal law or regulation expands the entities that may form association health
plans for the purpose of obtaining group health coverage to be treated as a
single employer for purposes of the federal "Employee Retirement Income
Security Act of 1974" (ERISA), and permits those plans to be regulated
under federal law as large-group coverage, the State will be required to treat
any association health plan that meets the federal criteria as a single
employer that is entitled to large-group coverage under State law.
���� This bill provides corporation
business tax (CBT) credits and gross income tax (GIT) credits to member
businesses of association health plans of multiple employer welfare
arrangements formed by a chamber of commerce, trade association, or nonprofit
business coalition.
���� The bill provides member
businesses with tax credits in an amount up to $1,000 per employee during the
preceding privilege period or taxable year.� The bill caps the credit amount at
$20,000 annually for each taxpayer per privilege period and taxable year, and
the credit is only available for the privilege periods and taxable years
commencing on or after January 1, 2027.
���� The bill requires the
Commissioner of Banking and Insurance to develop and implement a public
awareness and outreach campaign to inform chambers of commerce, trade
associations, and nonprofit business coalitions, member businesses, employees,
and persons residing and working in the State about coverage options.� To that
end, it directs the commissioner to allocate not less than $500,000 to the
program, which shall be regarded as a cost of administration of the public
awareness and outreach campaign.
���� The Department of Banking and
Insurance may allocate funds to provide grants to chambers of commerce, trade
associations, and nonprofit business coalitions, in a form and manner to be
determined by the Commissioner of Banking and Insurance.� The purpose of the
grants will be to offset administrative costs of plan management.