Bill
Bill > S1516
NJ S1516
NJ S1516Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.
summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill allows corporation business tax and gross income tax credits to businesses that employ qualified ex-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 qualified ex-offender is defined in the bill as a person who: (1) has been convicted of a crime of the first, second, third or fourth degree in this State; and (2) has been hired within one year of the date of conviction or release from incarceration. These State tax credits are modeled on the federal Work Opportunity Tax Credit (WOTC), which encourages employers to hire targeted groups of employees, including ex-felons. Under the federal WOTC, employers may claim a federal tax credit of up to 40 percent of the first $6,000 earned by the employee, or $2,400.
AI Summary
This bill allows businesses to receive tax credits against their corporation business tax and gross income tax if they hire "qualified ex-offenders," which are individuals convicted of a first, second, third, or fourth-degree crime in this state and hired within one year of their conviction or release from incarceration. The tax credit is equal to 15 percent of the wages paid to these qualified ex-offenders, with a maximum credit of $900 per individual. These state tax credits are similar to the federal Work Opportunity Tax Credit (WOTC), which incentivizes employers to hire specific groups of workers, including those with criminal records. The bill specifies limitations on how much of the corporation business tax credit can be used and allows unused credits to be carried over for up to seven years, while excess gross income tax credits can be treated as an overpayment.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S1516 |
| BillText | https://pub.njleg.gov/Bills/2026/S2000/1516_I1.HTM |
| BillText | https://pub.njleg.gov/Bills/2024/S2000/1516_I1.HTM |
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