STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblyman JOE HOWARTH
District 8 (Atlantic, Burlington and Camden)
Co-Sponsored by:
Assemblyman DeAngelo
SYNOPSIS
Provides corporation business tax and gross income tax credits for businesses that employ apprentices in DOL registered apprenticeships.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing corporation business tax and gross income tax credits for businesses that employ certain apprentices, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. For privilege periods beginning on or after January 1, 2015, a taxpayer shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period in an amount of $1,000 for each apprentice employed pursuant to a registered apprenticeship with the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor. For the taxpayer to claim the credit for a particular apprentice, that apprentice shall have been employed by the taxpayer for at least seven months of the privilege period. The credit for employment of a particular apprentice may not be taken for employment in more than four privilege periods.
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the director.
The amount of the credit applied pursuant to this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not reduce a taxpayer’s tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).
2. a. For taxable years beginning on or after January 1, 2015, a taxpayer shall be allowed a credit against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. in an amount of $1,000 for each apprentice employed pursuant to a registered apprenticeship with the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor. For the taxpayer to take the credit for a particular apprentice, that apprentice shall have been employed by the taxpayer for at least seven months of the taxable year. The credit for employment of a particular apprentice may not be taken for employment in more than four taxable years.
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. for a taxable year shall be as prescribed by the director.
The amount of the credit applied against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. shall not reduce a taxpayer’s New Jersey gross income tax liability to an amount less than zero.
3. This act shall take effect immediately and apply to privilege periods and taxable years beginning on or after January 1, 2015.
STATEMENT
This bill provides businesses with a credit against the corporation business tax or the gross income tax for each employee of the business employed pursuant to an apprenticeship registered with the United States Department of Labor (DOL). The bill gives businesses a credit of $1,000 for each apprentice employed for seven months or more during the taxable year. An employer may take the credit for a particular apprentice for a maximum of four taxable years of the apprentice’s employment.
The purpose of the tax credit is to encourage employers to add highly skilled workers to New Jersey’s workforce. The DOL registered apprenticeship system combines technical instruction with structured on-the-job experience to match individuals with employers in need of qualified, skilled workers. The range of occupations represented in the DOL registered apprenticeship system is vast, and includes traditional industries, such as construction and manufacturing, as well as emerging fields, such as healthcare and energy.
The bill allows the credits for tax years beginning on or after January 1, 2015. The credits are nonrefundable.