Bill > S813

This bill provides tax credits for businesses that hire qualified veterans, meaning residents of New Jersey who were honorably discharged from the U.S. Armed Forces after January 1, 1990, and were initially hired by the business on or after January 1, 2007. For privilege periods (tax years for corporations) and taxable years (tax years for individuals) beginning on or after January 1, 2013, and before January 1, 2016, businesses can receive a credit equal to ten percent of the "qualified wages" paid to these veterans, up to a maximum of $1,200 per veteran. "Qualified wages" are defined as salaries and remuneration subject to New Jersey's Gross Income Tax. The credit is intended to encourage sustained employment, defined as at least 185 business days of earning qualified wages. Businesses cannot claim this credit if the veteran's wages or job are already being used to calculate another state tax credit or grant. The bill also includes provisions to prevent businesses from displacing existing employees to hire veterans solely to obtain the credit, with penalties for misuse. Unused credit can be carried forward for up to seven years, and the bill specifies that the corporation business tax credit cannot reduce the tax liability by more than 50% of the amount otherwise due and cannot bring the tax below a statutory minimum. The gross income tax credit, however, can reduce the tax liability to zero.