Bill > S2240

Introduced Session

This bill provides businesses with credits against the corporation business tax and the gross income tax for certain employer-provided child care expenditures. The bill allows the tax credits for the three calendar years beginning after enactment. The bill permits businesses subject to the corporation business tax or the gross income tax to apply a credit against the tax liability otherwise due for a percentage of up to $50,000 of eligible expenditure made to acquire, construct, reconstruct, renovate, or otherwise improve real property to be used as a qualified child care center. The bill also permits businesses to apply a separate, additional credit for a percentage of up to $50,000 of eligible expenditures made in connection with the provision of certain child care services. The bill provides that the amount of the credit allowed for the construction of a child care center is equal to 50 percent of up to $50,000 of the cost paid or incurred by a business to acquire, construct, reconstruct, renovate, or otherwise improve real property in this State that is to be used by the business, or another person under contract or agreement with the business, to conduct, maintain, and operate a qualified child care center primarily for the children of individuals employed by the business. The bill provides that the amount of the credit allowed for the provision of child care services is equal to: -- 50 percent of up to $50,000 of the cost paid or incurred by a business to conduct, maintain, and operate a qualified child care center of the business that is used primarily by the children of individuals employed by the business; -- 50 percent of up to $50,000 of the amount paid by a business to another person to conduct, maintain, and operate, under contract or agreement with the business, a qualified child care center of the business that is used primarily by the children of individuals employed by the business; -- 50 percent of up to $50,000 of the amount paid by a business to another person under contract or agreement with the business, for the provision of child care to children of individuals employed by the business at a qualified child care center; or -- 10 percent of up to $50,000 of the cost paid or incurred by a business for the provision, by the business or by another person under contract or agreement with the business, of qualified child care information and referral services to individuals employed by the business. The bill provides that to be eligible to apply the credit for the construction of a child care center a business must make and enter into an agreement with the Director of the Division of Taxation in the Department of the Treasury. The bill specifies that the agreement must require the business to demonstrate the intended use and status of the real property acquired, constructed, reconstructed, renovated, or otherwise improved in this State, and require the business to use that property to conduct, maintain, and operate a qualified child care center primarily for the children of individuals employed by the business for a 60-month period. The bill defines a "qualified child care center" as a facility that is licensed as a child care center by the Department of Children and Families, and participates in Grow NJ Kids, but specifically excludes from that definition facilities licensed by the department if: the principal use of the facility is for some purpose other than the care, development, and supervision of children; the facility is not used on a regular basis to provide for the care, development, and supervision of children; enrollment in the facility is not open to children of individuals employed by the business claiming the credit; or use of the facility is limited or restricted under procedures, criteria, or other systems of selection that unfairly discriminate. The purpose of this bill is to encourage New Jersey businesses to take a more active role in the provision of child care to employees and their children. Businesses that are active in providing child care typically have a more engaged and productive workforce and play an integral part in reducing the overall demand for quality, affordable child care in this State.

AI Summary

Committee Categories

Teresa Ruiz (D)*,  Joe Vitale (D)*,  Nilsa Cruz-Perez (D),  Joe Cryan (D),  Troy Singleton (D),  Brian Stack (D),  Shirley Turner (D), 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/09/2024)

Official Document