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Bill > A1477

NJ A1477

NJ A1477
Provides corporation business tax and gross income tax credits for employers of certain persons with disabilities.

summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill provides corporation business and gross income tax credits to taxpayers that employ certain persons with disabilities. The credit would be for up to 15 percent of the wages paid by the taxpayer during a taxable year to a qualifying employee with a disability, not to exceed $2,000 per qualified employee. To claim the credit, a taxpayer would be required to submit an application to the Director of the Division of Vocational Rehabilitation Services in the Department of Labor and Workforce Development for certification that the employee has a disability for purposes of qualifying for the credit. A copy of the certification would be included with the taxpayer's tax return. The contents of the certification would only state the fact the employee has a qualifying disability and not disclose any private or confidential health information. The bill requires the director to establish an application process and prescribe the form and manner through which a taxpayer may submit an application to obtain a certification from the director that an employee is a qualified employee with a disability for purposes of the tax credit. The bill provides that applications would be deemed approved and written authorizations are deemed issued if the director fails to make a determination regarding within 90 calendar days of the date a complete application is received or if the director fails to issue a written authorization within five calendar days of the date a determination is made. The bill defines a "qualified employee with a disability" as a person with a disability recognized under the federal "Americans with Disabilities Act of 1990," Pub.L.101-336 (42 U.S.C. s. 12102). A qualified employee is also required to be employed by the taxpayer for at least 35 hours a week and paid wages at a rate of no less than $15 per hour. A taxpayer would be unable to claim the credit for the wages paid to a person with a disability who works for the taxpayer as an independent contractor or on a consulting basis.

AI Summary

This bill establishes tax credits for corporations and individuals who employ certain individuals with disabilities, aiming to incentivize hiring and support workforce inclusion. Specifically, it allows a tax credit of up to 15% of the wages paid to a "qualified employee with a disability," capped at $2,000 per employee. A "qualified employee with a disability" is defined as someone recognized under the federal Americans with Disabilities Act of 1990, who works at least 35 hours per week and earns at least $15 per hour, excluding independent contractors or consultants. To claim this credit, employers must apply to the Director of the Division of Vocational Rehabilitation Services for certification that the employee meets the criteria, and this certification, which will not disclose private health information, must be submitted with the tax return. The bill also outlines a process for application approval, including a 90-day timeframe for the director to make a determination, with applications automatically approved if this deadline is missed, and a subsequent five-day window for issuing written authorization. The credits can be carried forward for up to seven years if not fully utilized in a given tax period, and the Director of the Division of Taxation will determine the order of application for these credits alongside other available tax benefits.

Committee Categories

Health and Social Services

Sponsors (6)

Last Action

Introduced, Referred to Assembly Aging and Human Services Committee (on 01/13/2026)
(3 Companion Bills)

bill text

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Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2026/A1477
BillText https://pub.njleg.gov/Bills/2026/A1500/1477_I1.HTM
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