Bill > A1639

This bill provides tax credits for corporations and individuals who invest in employer-provided child care. For corporations, a credit of 50% of the cost is available for acquiring, constructing, or improving real property in New Jersey to be used as a qualified child care center primarily for the children of their employees, with specific requirements for agreements with the director of taxation, including a 60-month commitment to operate the center and provisions for repayment of the credit if the commitment is not met, unless due to casualty loss or an approved transfer of responsibility. Corporations can also receive a credit of 50% of the cost of operating a qualified child care center or for payments made to a third party to operate one, and 10% for providing child care information and referral services. For individuals, a credit of 50% is available for similar real property investments for child care centers, and also for operating costs and information/referral services. In both cases, a "qualified child care center" must be licensed, primarily serve children of employees, and not discriminate in favor of highly compensated employees or based on protected characteristics. Taxpayers can also elect to sell these credits to other taxpayers, but not for less than 75% of the credit's value. The credits are subject to limitations on how much can be used to reduce tax liability and can be carried forward for up to seven years. The bill defines "highly compensated employee" as those in the top 25% of compensation.