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Bill > S227
NJ S227
NJ S227Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 establishes tax credits for businesses in New Jersey that hire individuals with a criminal record, referred to as "qualified ex-offenders." A qualified ex-offender is defined as someone convicted of a first, second, third, or fourth-degree crime in New Jersey who is hired within one year of their conviction or release from incarceration. Businesses can receive a credit against their corporation business tax or gross income tax equal to 15 percent of the wages paid to these employees, with a maximum credit of $900 per ex-offender. These state tax credits are similar to the federal Work Opportunity Tax Credit (WOTC), which aims to incentivize employers to hire specific groups of workers, including ex-felons. The bill takes effect immediately and applies to wages paid after its enactment.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
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/2026/S227 |
| BillText | https://pub.njleg.gov/Bills/2026/S0500/227_I1.HTM |
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