Bill > S2348

Introduced Session

This bill allows qualified taxpayers to claim a credit equal to 20 percent of the credit they receive under the Employee Retention Credit of the federal "CARES Act." The Employee Retention Credit of the federal CARES Act is a credit that can be claimed against employment taxes in an amount equal to 50 percent of qualified wages paid to eligible employees. The federal credit only takes into account wages paid after March 12, 2020 and before January 1, 2021. The federal credit also only takes into account up to $10,000 of qualified wages paid during the period, so the maximum federal credit is $5,000 per employee. The credit allowed by this bill, to be claimed against the Corporate Business Tax or the Gross Income Tax, is 20 percent of the amount the taxpayer received under the federal credit for each employee, so the maximum State credit is $1,000 per employee. Only qualified taxpayers would be eligible for the NJ credit, and the taxpayer will only be allowed to claim a credit for NJ based employees. A qualified taxpayer is a taxpayer with 10 or fewer full time employees.

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Committee Categories

Tony Bucco (R)*,  Tom Kean (R)*,  Stephen Sweeney (D)*,  Dawn Addiego (D),  Christopher Bateman (R),  Chris Brown (R),  Gerald Cardinale (R),  Kristin Corrado (R),  Michael Doherty (R),  Jim Holzapfel (R),  Declan O'Scanlon (R),  Steven Oroho (R),  Joe Pennacchio (R),  Nicholas Sacco (D),  Bob Singer (R),  Mike Testa (R),  Samuel Thompson (D), 

Received in the Assembly, Referred to Assembly Budget Committee (on 04/13/2020)