Bill Text: NJ A335 | 2016-2017 | Regular Session | Introduced


Bill Title: Provides corporation business tax and gross income tax credits for businesses which employ eligible apprentices.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2016-01-27 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A335 Detail]

Download: New_Jersey-2016-A335-Introduced.html

ASSEMBLY, No. 335

STATE OF NEW JERSEY

217th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION

 


 

Sponsored by:

Assemblyman  TROY SINGLETON

District 7 (Burlington)

Assemblywoman  L. GRACE SPENCER

District 29 (Essex)

Assemblyman  RALPH R. CAPUTO

District 28 (Essex)

Assemblyman  RAJ MUKHERJI

District 33 (Hudson)

Assemblyman  ADAM J. TALIAFERRO

District 3 (Cumberland, Gloucester and Salem)

 

Co-Sponsored by:

Assemblyman Egan

 

 

 

 

SYNOPSIS

     Provides corporation business tax and gross income tax credits for businesses which employ eligible apprentices.

 

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, 2016, 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)   $1,500 for each apprentice who is 25 years of age or under; and

     (2)   $1,000 for each apprentice who is 26 years of age or older.

     b.    In order for the taxpayer to claim the credit allowed pursuant to this section for a particular apprentice:

     (1)   each apprentice shall have been employed by the taxpayer for 12 months of the privilege period for work performed in this State that is directly related to the apprentice's training; and  

     (2)   that apprentice shall be employed pursuant to a registered apprenticeship with the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor. 

     c.     The credit for employment of a particular apprentice may not be taken by the taxpayer for employment in more than five privilege periods.

     d.    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.

     e.     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, 2016, 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. for a taxable year in an amount of:

     (1)   $1,500 for each apprentice who is 25 years of age or under; and

     (2)   $1,000 for each apprentice who is 26 years of age or older.

     b.    In order for the taxpayer to claim the credit allowed pursuant to this section for a particular apprentice:

     (1)   each apprentice shall have been employed by the taxpayer for 12 months of the taxable year for work performed in this State that is directly related to the apprentice's training; and  

     (2)   that apprentice shall be employed pursuant to a registered apprenticeship with the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor.

     c.     The credit for employment of a particular apprentice may not be taken by the taxpayer for employment in more than five taxable years.

     d.    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.

     e.     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.

     f.     A business entity classified as a partnership for federal income tax purposes shall not be allowed a credit directly under the gross income tax, but the amount of credit of a taxpayer partner 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.

     g.    A business entity that is a New Jersey S corporation shall not be allowed a credit directly under the gross income tax, but the amount of credit of a taxpayer shareholder 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.

 

     3.    This act shall take effect immediately.

 

 

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 $1,500 for each apprentice who is 25 years of age or under, and a credit of $1,000 for each apprentice who is 26 years of age or older, and who is employed for 12 months of the taxable year for work performed in this State that is directly related to the apprentice's training.  An employer may take the credit for a particular apprentice for a maximum of five 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.

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