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Bill > A821
NJ A821
NJ A821Allows corporation business tax credit for subcontracting work to NJ small businesses.
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 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 located in New Jersey with fewer than 50 employees, and it cannot be 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 perform as part of its own contracted obligations. The bill also stipulates that this credit, when combined with other available tax credits, cannot exceed 50 percent of the total tax owed and cannot reduce the tax liability below a minimum amount. The Director of the Division of Taxation will establish procedures for taxpayers to prove their eligibility for this credit, which will apply to tax periods starting after the bill becomes law.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Introduced, Referred to Assembly Commerce and Economic Development 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/A821 |
| BillText | https://pub.njleg.gov/Bills/2026/A1000/821_I1.HTM |
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