Bill Text: NJ A5491 | 2026-2027 | Regular Session | Introduced
Bill Title: Establishes manufacturing machine and metal trade apprenticeship tax credit program.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced) 2026-09-14 - Introduced, Referred to Assembly Commerce and Economic Development Committee [A5491 Detail]
Download: New_Jersey-2026-A5491-Introduced.html
Sponsored by:
Assemblywoman DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Establishes manufacturing machine and metal trade apprenticeship tax credit program.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a manufacturing machine and metal trade apprenticeship tax credit program, supplementing Title 54 of the Revised Statutes 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, 2027, 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) in an amount equal to one-half of the wages paid to a qualified manufacturing machine and metal trade apprentice for the privilege period, but not to exceed $7,500 per apprentice per privilege period.
b. 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).
c. As used in this section:
"Machine and metal trade" means a metalworking occupation including, but not limited to, machinists, toolmakers, tool and diemakers, model makers, gage makers, patternmakers, tool and machine setters, diesinkers, moldmakers, machine tool repairers, and similar occupations involving multiple work processes using machine tool equipment to shape metal by cutting, grinding, milling, turning, drilling, boring, planning, hobbing, and abrading operations.
"Qualified manufacturing machine and metal trade apprentice" means an unskilled or semi-skilled person in machine tool or metal trades that is employed by the taxpayer for no less than 1,500 hours in the privilege period as part of a term of machine and metal trade training not exceeding four privilege periods, involving wage progression, defined job training processes, course instruction, and completion resulting in designation as a skilled worker.
2. a. For taxable years beginning on or after January 1, 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 one-half of the wages paid to a qualified manufacturing machine and metal trade apprentice for the taxable year, but not to exceed $7,500 per apprentice per taxable year.
b. 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 the amount of New Jersey gross income tax liability due for the taxable year.
c. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the credit directly, but the amount of credit of a 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.
(2) A taxpayer that is a New Jersey S corporation shall not be allowed the credit directly, 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.
d. As used in this section:
"Machine and metal trade" means a metalworking occupation including, but not limited to, machinists, toolmakers, tool and diemakers, model makers, gage makers, patternmakers, tool and machine setters, diesinkers, moldmakers, machine tool repairers, and similar occupations involving multiple work processes using machine tool equipment to shape metal by cutting, grinding, milling, turning, drilling, boring, planning, hobbing, and abrading operations.
"Qualified manufacturing machine and metal trade apprentice" means an unskilled or semi-skilled person in machine tool or metal trades that is employed by the taxpayer for no less than 1,500 hours in the taxable year as part of a term of machine and metal trade training not exceeding four taxable years, involving wage progression, defined job training processes, course instruction, and completion resulting in designation as a skilled worker.
3. This act shall take effect immediately.
STATEMENT
The bill establishes a manufacturing machine and metal trade apprenticeship tax credit program under the gross income tax and corporation business tax. The purpose of the program is to encourage manufacturing employers to provide structured training to machine and metal trade apprentices to add more skilled workers to New Jersey's labor market.
The bill gives manufacturing employers with qualified machine and metal trade apprenticeship programs the lesser of $7,500 per apprentice, or 50 percent of an apprentice's wages. To qualify for credit, an apprenticeship must employ an unskilled or semi-skilled person in machine tool or metal trades for no less than 1,500 hours in the tax year as part of a term of machine and metal trade training not exceeding four tax years. The machine and metal trade apprenticeship must involve wage progression, defined job training processes, course instruction, and completion resulting in designation as a skilled worker.
The bill schedules the credits for tax periods beginning on or after January 1, 2027. The credits are nonrefundable.
