Bill Text: NJ A5252 | 2026-2027 | Regular Session | Introduced
Bill Title: Establishes "New Jersey Earn and Learn Program;" provides tax credits for employers providing structured apprenticeships and paid internships.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-15 - Introduced, Referred to Assembly Labor Committee [A5252 Detail]
Download: New_Jersey-2026-A5252-Introduced.html
Sponsored by:
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
SYNOPSIS
Establishes "New Jersey Earn and Learn Program;" provides tax credits for employers providing structured apprenticeships and paid internships.
CURRENT VERSION OF TEXT
As introduced.
An Act providing apprenticeship and internship tax credits and supplementing P.L.1992, c.43 (C.34:15D-1 et seq.), 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. There is established in the Department of Labor and Workforce Development, in consultation with the Department of Education and the New Jersey Economic Development Authority, a "New Jersey Earn and Learn Program" to provide tax credits to encourage apprenticeships and paid internships that lead to permanent employment.
b. The program shall:
(1) provide an incentive to employers to hire individuals into apprenticeships and paid internships that lead to permanent employment;
(2) inform employers of the tax credit program established pursuant to this act; and
(3) be limited to a three-year duration per individual enrollee.
c. The commissioner, in consultation with the Director of the Division of Taxation, shall certify employer eligibility and program participation for the tax credit established pursuant to sections 2 and 3 of this act, and shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of this act and to prevent the duplication of benefits across State workforce development programs.
d. An employer subject to the provisions of this act may apply for the tax credits established pursuant to sections 2 and 3 of this act. A tax credit allowed pursuant to this act shall be the amount provided in sections 2 and 3 of this act against the corporation business tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) or the gross income tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., whichever of the two taxes is applicable to the employer.
e. As used in this section:
"Apprenticeship" means apprenticeship in a program providing to each trainee combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker, and registered by the Office of Apprenticeship of the United States Department of Labor and meeting the standards established by that office.
"Commissioner" means the Commissioner of Labor and Workforce Development.
"Enrollee" means any individual engaged in apprenticeship or internship activities under the program.
"Internship" means a structured learning experience designed for career exploration that includes supervised practical training, with pay, that complies with applicable federal and State wage and hour requirements.
"Program" means the "New Jersey Earn and Learn Program" established pursuant to this act.
2. a. For privilege periods beginning in 2027, 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 equal to $3,000 for each individual enrolled in an apprenticeship or internship pursuant to the program established in section 1 of this act.
b. An additional credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to $1,000 shall be allowed if:
(1) the business employs fewer than 100 employees;
(2) the enrollee belongs to a member of a protected class, based on race, color, religion, national origin, sex, sexual orientation, disability, or age, that is underrepresented in the career field of the apprenticeship or internship; or
(3) the business is owned by an individual, or has ownership of greater than or equal to 50 percent, which belongs to a member of a protected class, based on race, color, religion, national origin, sex, sexual orientation, disability, or age, that is underrepresented in the business field.
c. An additional credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) in an amount equal to $1,000 shall be allowed if:
(1) the enrollee in an apprenticeship:
(a) completes the apprenticeship certification requirements;
(b) is converted to full-time employment within 12 months after the completion of the apprenticeship;
(c) earns a salary commensurate with other workers holding similar certifications and work experience; and
(d) maintains full-time employment with the business for a period of six months; or
(2) the enrollee in an internship:
(a) is hired by the business to full-time employment within 12 months after the completion of the internship;
(b) is paid a salary commensurate with other workers holding similar qualifications and work experience; and
(c) maintains full-time employment with the business for a period of six months.
d. The total value of credits claimed by a taxpayer under this section shall not exceed $500,000 in a taxable year.
e. 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).
f. A taxpayer shall apply in a form and manner to be determined by the director for the tax credit provided pursuant to this section.
g. As used in this section:
"Apprenticeship" means apprenticeship in a program providing to each trainee combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker, and registered by the Office of Apprenticeship of the United States Department of Labor and meeting the standards established by that office.
"Enrollee" means any individual engaged in apprenticeship or internship activities under the program.
"Internship" means a structured learning experience designed for career exploration that includes supervised practical training, with pay, provided the internship complies with applicable federal and State wage and hour requirements.
"Program" means the "New Jersey Earn and Learn Program" established pursuant to section 1 of this act.
3. a. For taxable years beginning in 2027, 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 equal to $3,000 for each individual enrolled in an apprenticeship or internship pursuant to the program established in section 1 of this act.
b. An additional credit against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. in an amount equal to $1,000 shall be allowed if:
(1) the business employs fewer than 100 employees; or
(2) the enrollee belongs to a member of a protected class, based on race, color, religion, national origin, sex, sexual orientation, disability, or age, that is underrepresented in the career field of the apprenticeship or internship; or
(3) the business is owned by an individual, or has ownership of greater than or equal to 50 percent, which belongs to a member of a protected class, based on race, color, religion, national origin, sex, sexual orientation, disability, or age, that is underrepresented in the career field.
c. An additional credit against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. in an amount equal to $1,000 shall be allowed for each enrollee if:
(1) the enrollee in an apprenticeship:
(a) completes the apprenticeship certification requirements;
(b) is converted to full-time employment within 12 months after the completion of the apprenticeship;
(c) earns a salary commensurate with other workers holding similar certifications and work experience; and
(d) maintains full-time employment with the business for a minimum of six months; or
(2) the enrollee in an internship:
(a) is hired by the business to full-time employment within 12 months after the conclusion of the internship;
(b) earns a salary commensurate with other workers having similar work experience; and
(c) maintains full-time employment with the business for a minimum of six months.
d. The total value of credits claimed by a taxpayer under this section shall not exceed $500,000 in a taxable year.
e. 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 allowed against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq., shall not reduce a taxpayer's tax liability to an amount less than zero. No tax credit shall be allowed pursuant to this section for any wages and payroll taxes included in the calculation of any other tax credit granted pursuant to a claim made on a tax return filed with the director for a period of time that coincides with the taxable year for which a tax credit authorized pursuant to this section is allowed.
f. A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the tax 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.
g. A taxpayer that is a New Jersey S corporation shall not be allowed the tax 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.
h. A taxpayer shall apply in a form and manner to be determined by the director for the tax credit provided pursuant to this section.
i. As used in this section:
"Apprenticeship" means apprenticeship in a program providing to each trainee combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker, and registered by the Office of Apprenticeship of the United States Department of Labor and meeting the standards established by that office.
"Enrollee" means any individual engaged in apprenticeship or internship activities under the program.
"Internship" means a structured learning experience designed for career exploration that includes supervised practical training, with pay, provided the internship complies with applicable federal and State wage and hour requirements.
"Program" means the "New Jersey Earn and Learn Program" established pursuant to section 1 of this act.
4. One year after the effective date of this act, and each year thereafter for the duration of the program, the Commissioner of Labor and Workforce Development shall submit to the Governor, and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a report that evaluates the results of the program including, but not limited to, program participation, permanent job placements, anticipated tax credits deployed, and overall workforce impact.
5. This act shall take effect January 1, 2027 except that the Commissioner of Labor and Workforce Development and the Director of the Division of Taxation may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill establishes the "New Jersey Earn and Learn Program" which provides tax credits to businesses to encourage apprenticeships and paid internships. The bill allows for tax credits of up to $5,000 per individual enrollee per year for a period of up to three years.
The bill requires the Commissioner of Labor and Workforce Development to engage with the Department of Education and the Economic Development Authority to create the program to maximize the impact of the program and further the use of apprenticeships and internships to encourage workforce development.
The bill provides a base $3,000 tax credit for each apprenticeship or internship enrollee, with additional credits available for small business, minority owned businesses and conversion of enrollees into full-time positions.
The Director of the Division of Taxation will develop the application process and details of the tax credit process, and the Department of Labor and Workforce Development will create an annual report on the effectiveness of the program.
