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Bill > S799

NJ S799

NJ S799
Allows corporation business tax credit for subcontracting work to NJ small businesses.

summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill allows taxpayers subject to the corporation business tax to claim a credit against that tax equal to one percent of the amount the taxpayer paid to New Jersey small businesses for subcontracted work. For purposes of the credit, subcontracted work is that work which the taxpayer subcontracts to New Jersey small businesses for performance of all or an element of the taxpayer's own contracted duties. In addition, the subcontracted work must be performed in New Jersey and the subcontractor must have less than 50 employees.

AI Summary

This bill allows businesses subject to New Jersey's corporation business tax to receive a tax credit equal to one percent of the money they pay to New Jersey small businesses for subcontracted work performed within the state. A "New Jersey small business" is defined as a business with fewer than 50 employees that is located in New Jersey and is not an affiliate or subsidiary of the business claiming the credit. "Subcontracted work" refers to tasks that a business hires a New Jersey small business to complete as part of its own contracted obligations. The bill also specifies that this credit, when combined with other available tax credits, cannot exceed 50 percent of the total tax liability and cannot reduce the tax below a certain statutory minimum, with the director of taxation responsible for establishing the order of credit application and procedures for taxpayers to certify their eligibility.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

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

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