Bill Text: NJ S1313 | 2022-2023 | Regular Session | Amended
Bill Title: Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-05-16 - Referred to Senate Budget and Appropriations Committee [S1313 Detail]
Download: New_Jersey-2022-S1313-Amended.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.
CURRENT VERSION OF TEXT
As reported by the Senate Commerce Committee on May 16, 2022, with amendments.
An Act allowing credits against the corporation business tax and the gross income tax to businesses employing certain ex-offenders and 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. 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 15 percent of the wages paid by the taxpayer during the privilege period for the employment of a qualified ex-offender, but not to exceed $900 for each qualified ex-offender for the privilege period.
b. As used in this section:
"Qualified ex-offender" means an individual who:
(1) has been convicted of a crime of the first, second, third or fourth degree under the laws of this State; and
(2) has been hired within one year of the date of conviction or release from incarceration.
c. 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, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 1[(C.54:10-5)] (C.54:10A-5)1, shall not exceed 50 percent of the tax liability otherwise due and 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-1 et seq.). The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be determined by the Director of the Division of Taxation. The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
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 equal to 15 percent of the wages paid by the taxpayer during the taxable
year for the employment of a qualified ex-offender during the taxable year, but
not to exceed $900 for each qualified ex-offender for the taxable year.
b. As used in this section:
"Qualified ex-offender" means an individual who:
(1) has been convicted of a crime of the first, second, third or fourth degree under the laws of this State; and
(2) has been hired within one year of the date of conviction or release from incarceration.
c. The amount of the credit allowed pursuant to this section shall be applied against the tax otherwise due under N.J.S.54A:1-1 et seq. after all other credits and payments. If the credit exceeds the amount of tax otherwise due, that amount of excess shall be an overpayment for the purposes of N.J.S.54A:9-7.
d. A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., 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.
3. This act shall take effect immediately and shall apply to wages paid in privilege periods and taxable years beginning after enactment.
