Bill > S3517

This bill allows businesses that pay the corporation business tax to receive a tax credit equal to one percent of what 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 specifies that this credit, when combined with other available credits, cannot exceed 50 percent of the total tax liability and cannot reduce the tax below a certain statutory minimum. The director of the relevant tax authority will establish procedures for taxpayers to certify their eligibility for this credit, which will apply to tax periods starting after the bill becomes law.