Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Somerset)
SYNOPSIS
Allows tax credits for employing members of NJ National Guard and members of reserve component of US Armed Forces.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing tax credits for employing members of the New Jersey National Guard and members of the reserve component of the Armed Forces of the United States, supplementing P.L.1945, c.162 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 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 calculated pursuant to subsection b. of this section for employing qualified service members during the privilege period.
b. The credit allowed pursuant to this section shall be: $1,500 for each qualified service member who is employed by the taxpayer and who has not completed or returned from a deployment or activation; and $2,500 for each qualified service member who is employed by the taxpayer and who has completed or returned from a deployment or activation.
c. The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under section 5 of P.L.1945, c.162 (C.54:10A-5). 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, together with any other credits allowed by law, 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 (C.54:10A-5).
d. As used in this section, “qualified service member” means a member of the New Jersey National Guard or the reserve component of the Armed Forces of the United States.
2. a. A taxpayer 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 calculated pursuant to subsection b. of this section for employing qualified service members during the taxable year.
b. The credit allowed pursuant to this section shall be: $1,500 for each qualified service member who is employed by the taxpayer and who has not completed or returned from a deployment or activation; and $2,500 for each qualified service member who is employed by the taxpayer and who has completed or returned from a deployment or activation.
c. The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax otherwise due for the taxable year under N.J.S.54A:1-1 et seq. The amount of the credit applied under this section against the tax imposed under N.J.S.54A:1-1 et seq. for the taxable year, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than zero.
d. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the credit directly under N.J.S.54A:1-1 et seq., but the amount of credit of the taxpayer in respect of a distributive share of partnership income 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.
A taxpayer that is a New Jersey S corporation shall not be allowed the credit directly under N.J.S.54A:1-1 et seq., but the amount of 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 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.
e. As used in this section, “qualified service member” means a member of the New Jersey National Guard or the reserve component of the Armed Forces of the United States.
3. Notwithstanding any provision of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to the contrary, the Director of the Division of Taxation in the Department of the Treasury is authorized to adopt immediately upon filing with the Office of Administrative Law such rules and regulations necessary to implement this act, including, but not limited to, rules and regulations specifying documentation and verification related to a claim for a tax credit for employing qualified service members. The rules and regulations adopted pursuant to this section shall be effective for a period not to exceed 18 months following the date of filing and may thereafter be amended, adopted, or readopted by the director in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).
4. This act shall take effect immediately and apply to privilege periods and taxable years beginning on and after the date of enactment.
STATEMENT
This bill allows a corporation business tax credit or a gross income tax credit for employing members of the New Jersey National Guard or the reserve component of the Armed Forces of the United States. The credit amount is: $1,500 for each member who is employed by the taxpayer and who has not completed or returned from a deployment or activation; and $2,500 for each member who is employed by the taxpayer and who has completed or returned from a deployment or activation.