A4278

An Act allowing a credit against the corporation business tax and the New Jersey gross income tax to certain businesses providing annual physical and mental health screenings to their full-time and part-time employees, 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. A taxpayer with 25 or more full-time or part-time employees shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 20 percent of the cost of the taxpayer’s provision of annual physical and mental health screening services for the taxpayer’s full-time and part-time employees. This amount shall not include the cost of health insurance provided by the taxpayer to the taxpayer’s employees.

b. As used in this section:

“Annual physical and mental health screening services” means an annual physical health wellness screening conducted by a qualified medical practitioner and an annual mental health wellness screening conducted by a qualified mental health practitioner.

c. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for a privilege period, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be determined by the director. The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.

2. a. A taxpayer with 25 or more full-time or part-time employees shall be allowed a credit against the tax otherwise due for the taxable year under the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., in an amount equal to 20 percent of the cost of the taxpayer’s provision of annual physical and mental health screening services for the taxpayer’s full-time and part-time employees. This amount shall not include the cost of health insurance provided by the taxpayer to the taxpayer’s employees.

b. As used in this section:

“Annual physical and mental health screening services” means

an annual physical health wellness screening conducted by a qualified medical practitioner and an annual mental health wellness screening conducted by a qualified mental health practitioner.

c. The amount of the credits applied under this section for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq., shall not exceed 50 percent of the taxpayer’s liability otherwise due for the taxable year. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be determined by the director. The amount of the credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection may be carried over, if necessary to the seven taxable years following the taxable year for which the credit was allowed.

d. (1) A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer’s share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer’s taxable year.

(2) A New Jersey S Corporation shall not be allowed a credit under this section directly, but the amount of the tax credit of a taxpayer in respect of a pro rata share of S Corporation income, shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the New Jersey S Corporation that is equal to the taxpayer’s share, whether or not distributed, of the total pro rata share of S Corporation income of the New Jersey S Corporation for its privilege period ending within or with the taxpayer’s taxable year.

3. The Director of the Division of Taxation, in consultation with the Commissioner of Health, shall promulgate regulations pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the provisions of this act.

4. This act shall take effect immediately, and sections 1 and 2 shall apply to privilege periods and taxable years beginning on or after January 1 next following enactment.

STATEMENT

This bill would provide corporation business tax and gross income tax credits to certain businesses that provide annual physical and mental health screening services for their full-time and part-time employees. To be eligible for the credit, a business is required to have 25 or more full-time or part-time employees. The amount of the credit would be equal to 20 percent of the cost of the annual physical and mental health screening services. This amount will not include the cost of health insurance provided by the taxpayer to the taxpayer’s employees.