Bill > S3046

Introduced Session

This bill would provide a corporation business and gross income tax credit for businesses with a headquarters in New Jersey for employment of persons who have experienced job loss due to automation. According to a 2020 ALICE report (Asset Limited, Income Constrained, Employed) from United Way of New Jersey analyzing living conditions for households with incomes above the Federal Poverty Level but below the basic cost of living, found that 84 percent of jobs paying less than $20 per hour and 42 percent of jobs paying more than $20 per hour in the State are at high risk of becoming automated. The sponsor notes that Ocean County is among the State's counties with the highest rates of these types of jobs, leaving many of the county's residents and families vulnerable to the impact of job loss due to automation. The amount of the credit would be equal to 10 percent of the salary and wages paid to each person employed by the taxpayer whose previous employment with another taxpayer was terminated as a result of automation during the immediately preceding privilege period or taxable year, as the case may be. In order to qualify for the credit, the taxpayer would be required to employ the person for at least seven months of the privilege period or taxable year for which the taxpayer claims the credit. The amount of the credit would not exceed $2,500 per employee per privilege period or taxable year. The bill defines "automation" as a device, process, or system that replaces human labor and functions without continuous input from an operator.

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Owen Henry (R)*, 

Introduced in the Senate, Referred to Senate Labor Committee (on 04/08/2024)

Official Document