Bill Text: NJ A1146 | 2012-2013 | Regular Session | Introduced
Bill Title: Provides gross income tax credit for certain small business employers that provide health care benefits to employees.
Spectrum: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A1146 Detail]
Download: New_Jersey-2012-A1146-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
Assemblywoman CONNIE WAGNER
District 38 (Bergen and Passaic)
Co-Sponsored by:
Assemblyman Chiusano and Assemblywoman McHose
SYNOPSIS
Provides gross income tax credit for certain small business employers that provide health care benefits to employees.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act providing a credit against the New Jersey gross income tax for certain taxpayers who provide health care benefits to their employees, and supplementing chapter 4 of 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 who employs no more than 25 employees in the taxpayer's business in the taxable year and provides health care benefits for each employee shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.. The credit shall be an amount equal to 25 percent of the cost of providing health care benefits to employees during that taxable year.
b. The amount of the credit claimed in the taxable year in which the cost is incurred shall not exceed 50 percent of the tax liability which would be otherwise due that year.
c. A partnership shall not be allowed a credit under this section directly, but the amount of credit shall be passed through to the partners, members, shareholders, or owners. Each taxpayer shall be allowed 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 the partnership's taxable year ending within or with the taxpayer's taxable year. For the purposes of subsection b. of this section, the amount of tax liability that would be otherwise due of a taxpayer is that proportion of the total liability of the taxpayer that the taxpayer's share of the partnership income or gain included in gross income bears to the taxpayer's total gross income.
d. As used in this section:
"Employee" means an individual who has been employed by an employer for not less than six months, works not less than 30 hours per week, and performs services for remuneration for an employer; except that a person who is self-employed shall not be considered an employee.
"Health care benefits" means medical, surgical, and hospital benefits.
2. This act shall take effect immediately and be applicable to taxable years beginning on or after January 1 of the year next following its enactment.
STATEMENT
This bill provides a credit against the New Jersey gross income tax for small business employers who employ no more than 25 employees and provide health care benefits for their employees. The credit is an amount equal to 25 percent of a business's cost of providing health care benefits, except that the credit is limited to not more than 50 percent of the business's tax liability otherwise due in any one taxable year.
This bill is intended to encourage non-incorporated small businesses to provide health care benefits for their employees.
