Bill > S605

Introduced Session

This bill provides corporation business tax (CBT) credits and gross income tax (GIT) credits to small business employers and farm employers for increases in certain mandatory employer contributions. The bill provides small business employers and farm employers with tax credits in an amount equal to the difference of: 1) the amounts expended by the small business employer or farm employer as mandatory employer contributions for workers' compensation insurance and New Jersey Temporary Disability Insurance and Unemployment Insurance during the privilege period or taxable year; minus 2) the amounts that would have been expended by the small business employer or farm employer as mandatory employer contributions for workers' compensation insurance and New Jersey Temporary Disability Insurance and Unemployment Insurance during the preceding for the same amount of employees and wages during the preceding privilege period or taxable year. The term "small business employer" means a taxpayer that: 1) employs fewer than 25 employees in this State, which employees shall have been employed by the employer for not less than 48 weeks of the calendar year and which are employed by the taxpayer as of the last day of the calendar year; and 2) generates less than $1 million in annual net receipts, based on the average of the three preceding privilege periods or taxable years. The term "farm employer" means a taxpayer in this State who engages individuals in this State on a piece-rate or regular hourly rate basis to labor on a farm. The bill caps the credit amount at $12,000 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, 2020, but before January 1, 2030. Any amount of the tax credit that cannot be taken against a small business employer's or farm employer's CBT liability can be carried forward for four privilege periods following the privilege period for which a portion of the tax credit was allowed. If the credit exceeds a small business employer's or farm employer's GIT liability, the small business employer or farm employer can receive a refund for the amount in excess. The bill requires the Director of the Division of Taxation in the Department of the Treasury to determine the form and manner by which a taxpayer can apply for the tax credit.

Committee Categories

Latham Tiver (R)*, 

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

Official Document