Bill Text: NJ S1485 | 2022-2023 | Regular Session | Amended

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Bill Title: "New Jersey Works Act"; Permits businesses to create pre-employment training programs in partnership with nonprofit organizations or educational institutions; provides tax credit to businesses that provide financial assistance to pre-employment training programs; makes appropriation.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2023-05-08 - Referred to Senate Budget and Appropriations Committee [S1485 Detail]

Download: New_Jersey-2022-S1485-Amended.html

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[First Reprint]

SENATE, No. 1485

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED FEBRUARY 10, 2022

 

 

Sponsored by:

Senator  JAMES BEACH

District 6 (Burlington and Camden)

Senator  TROY SINGLETON

District 7 (Burlington)

 

Co-Sponsored by:

Senator Turner

 

 

 

 

SYNOPSIS

     "New Jersey Works Act"; Permits businesses to create pre-employment training programs in partnership with nonprofit organizations or educational institutions; provides tax credits to businesses that provide financial assistance to pre-employment training programs; makes appropriation.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Labor Committee on May 8, 2023, with amendments.

  

An Act concerning pre-employment training programs, ¹[and]¹ 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 ¹, and making an appropriation¹.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    This act shall be known and may be cited as the "New Jersey Works Act."

 

     2.    As used in ¹sections 1 through 4 of¹ P.L.    , c.   (C.       ) (pending before the Legislature as this bill):

      ¹"Agreement" means an agreement between one or more business entities and one or more institutions of higher education, comprehensive high schools, county vocational schools, or nonprofit organizations to establish a pre-employment and work readiness training program.¹  "Assistance" means the contribution of moneys to aid in the provision of a pre-employment and work readiness training program established by a business entity in partnership with an institution of higher education or a comprehensive high school or county vocational school or nonprofit organization.

      "Business entity" means any corporation, company, association, society, firm, partnership, joint stock company, sole proprietorship, limited liability entity or individual which is authorized to conduct or operate a trade or business in the State.  ¹"Business entity" shall not include any business entity engaged in a construction trade.¹

      ¹["Commission" means the State Employment and Training Commission established pursuant to section 5 of P.L.1989, c.293 (C.34:15C-2).]¹

      "Comprehensive high school" means a public or non-public high school located in the State that may grant a State-endorsed diploma to students and offers vocational education.

      "Department" means the Department of Labor and Workforce Development.

      "Director" means the Director of the Division of Taxation in the Department of the Treasury.

      ¹"Educational institution" means an institution of higher education, a comprehensive high school, or a county vocational school.¹

      "Institution of higher education" means any public or independent four-year institution of higher education or a county college

      "Low income household" means a household whose gross household income is less than 50 percent of the median gross household income for the region in which the business entity is located for households of similar size as determined by the department.

      "Moderate income household" means a household whose gross household income is greater than or equal to 50 percent but less than 80 percent of the median gross household income of the region in which the business entity is located for households of similar size as determined by the department.

      "Nonprofit organization" means a private nonprofit corporation that has been determined by the Internal Revenue Service of the United States Department of the Treasury to be exempt from income taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code, 26 U.S.C. s.501(c)(3).

      ¹["Partnership" means an agreement between one or more business entities and one or more institutions of higher education, comprehensive high schools, county vocational schools, or nonprofit organizations to establish a pre-employment and work readiness training program.]¹

 

     3.    a.  One or more institutions of higher education, comprehensive high schools, county vocational schools, or nonprofit organizations may enter into ¹[a partnership] an agreement¹ with a business entity to establish a pre-employment and work readiness training program.  The purpose of the program shall be to recruit, prepare, and educate individuals for entry-level jobs with long-term career potential through paid training programs.  The program shall target for recruitment low- and moderate-income households and current workers in need of skills development.  A business entity ¹[that enters into a partnership]¹ may provide assistance for a pre-employment and work readiness training program ¹[that has been] if the program is¹ approved by the ¹[commission] department¹ pursuant to section 4 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) and may receive a credit for such assistance pursuant to ¹[sections] section¹ 5 ¹[and] or¹ 6 of P.L.    , c.    (C.        ¹or C.        ¹) (pending before the Legislature as this bill).

      b.   Each pre-employment and work readiness training program shall offer  no less than 12 weeks of paid training for each participant, and include, but not be limited to training and instruction in the following areas:  basic math and English literacy, communication skills, critical thinking, leadership, life skills and job readiness skills training such as conflict management, finance concepts, resume preparation, problem solving, self-awareness and management, and any other requirement deemed necessary by the ¹[commission] department¹.  Each pre-employment and work readiness training program participant shall be paid the minimum wage pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4) or any order issued by the Commissioner of Labor and Workforce Development pursuant to that act.

      c.   Each trainee shall be a minimum of 16 years old ¹[, and no].  An educational¹ institution ¹[of higher education]¹ or nonprofit organization ¹shall¹ not determine a trainee's eligibility for participation in a training program based on the trainee's possession of a high school diploma or any high school equivalency.  Following the successful completion of a pre-employment and work readiness training program, each program shall offer trainees ¹[: (1) college credits for all applicable course work of the program provided through an institution of higher education, comprehensive high school, or county vocational school; or (2)]¹ employment provided through a business entity which has provided funding for a qualified pre-employment and work readiness training program, or both.

      d.   Each ¹educational¹ institution ¹[of higher education]¹ or nonprofit organization shall submit to the ¹[commission] department¹ the following information three months, six months, and nine months following the close of ¹[the] a¹ training program: the number of participants who successfully completed the training program and the number of participants currently employed by a business entity, including each participant's job title and salary.

 

     4.    a.  An institution of higher education, comprehensive high school, county vocational school, or nonprofit organization which ¹[is the recipient of funding provided by the] has entered into an agreement under section 3 of P.L.    , c.    (C.    ) (pending before the Legislature as this bill) with a¹ business entity shall submit a ¹proposed¹ pre-employment ¹and work-readiness¹ training plan to the ¹[commission] department¹ for approval.  Two or more institutions of higher education, comprehensive high schools, county vocational schools, or nonprofit organizations may submit a plan to the ¹[commission] department¹ jointly.  Any plan submitted by two or more institutions of higher education, comprehensive high schools, vocational schools, or nonprofit organizations shall designate one institution of higher education, comprehensive high school, vocational school, or nonprofit organization as the lead organization with responsibility for the plan. 

An institution of higher education, comprehensive high school, ¹[or] county¹ vocational school, or ¹[a]¹ nonprofit organization that has ¹[submitted] proposed¹ a pre-employment ¹and work-readiness¹ training plan to the ¹[commission] department¹ may seek to amend it at any time.  The ¹[commission] department¹ shall approve the amendments so long as the pre-employment and work readiness training ¹[program] plan¹ complies with the minimum requirements set forth in subsection c. of this section.

      b.   The ¹[commission] department¹ shall review a ¹proposed¹ pre-employment ¹and work-readiness¹ training plan to ¹[determine] make an initial determination as to¹ whether a proposed pre-employment and work readiness training program qualifies for assistance for which a tax credit may be granted pursuant to ¹[sections] section¹ 5 ¹[and] or section¹ 6 of P.L.    , c.    (C.        ¹or C.        ¹) (pending before the Legislature as this bill).  ¹Upon the department's initial determination of qualification, the department shall refer the proposed program and application to the Director of Taxation in the Department of the Treasury for final approval, and the Treasury shall notify the department of the final approval.¹

      c.   The ¹[commission] department¹ shall determine that a ¹proposed plan for a¹ pre-employment and work readiness training program qualifies for assistance if ¹[it] the plan¹ meets all of the following standards:

      (1)  The ¹proposed¹ program consists of pre-employment and work readiness training activities ¹[that will] to¹ benefit low- and moderate-income households and persons in need of early and mid-career skills training or vocational retraining.

      (2)  The ¹proposed¹ program is reasonably designed to accomplish its intended purpose and it would further the purposes of the pre-employment ¹and work-readiness¹ training plan.

      (3)  The ¹educational¹ institution ¹[of higher education]¹ or nonprofit organization demonstrates that it has the capacity to implement the ¹proposed¹ pre-employment ¹and work-readiness¹ training plan.

      (4)  The ¹educational¹ institution ¹[of higher education]¹ or nonprofit organization ¹[provides adequate assurances] ensures¹ that ¹[the] financial¹ assistance ¹[will] is to¹ be expended exclusively to implement the pre-employment ¹and work-readiness¹ training plan.

      (5)  The ¹educational¹ institution ¹[of higher education]¹ or nonprofit organization provides documentation of its ¹[graduation] completion¹ rates ¹[and of the percentage of students placed in employment relevant to their training and coursework]¹.

 

     5.    a.  A taxpayer, upon ¹final¹ approval of an application ¹[to] by¹ the director, 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 100 percent of the amount of assistance provided by the taxpayer to an institution of higher education, comprehensive high school, county vocational school, or nonprofit organization during a privilege period commencing on or after January 1 next following the enactment of P.L.    , c.   (C.       ) (pending before the Legislature as this bill) for an approved pre-employment and work readiness training program established in ¹[partnership] agreement¹ with an institution of higher education, comprehensive high school, county vocational school, or nonprofit organization pursuant to section 3 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill).

      b.   No tax credit shall be awarded pursuant to this section for any costs or expenses included in the calculation of any other tax credit or exemption granted pursuant to a claim made on a tax return filed with the director, or included in the calculation of an award of business assistance or incentive, for a period of time that coincides with the privilege period for which a tax credit pursuant to this section is allowed.  The order of priority of application of the tax 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 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.   The value of tax credits approved by the director pursuant to subsection a. of this section and pursuant to subsection a. of section 6 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) shall not exceed a cumulative total of $12,000,000 in State fiscal year ¹[2020] 2023¹, and in each State fiscal year thereafter, to apply against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) and the tax imposed pursuant to the "New Jersey Gross Income Tax Act,"  N.J.S.54A:1-1 et seq.  If the cumulative total amount of tax credits allowed to taxpayers ¹[pursuant]¹ for privilege periods or taxable years commencing during a single fiscal year under subsection a. of this section and subsection a. of section 6 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) exceeds the amount of tax credits available in that fiscal year, then taxpayers who have first applied for and have not been allowed a tax credit for that reason shall be allowed, in the order in which they have submitted an application, the amount of the tax credit on the first day of the next succeeding fiscal year in which tax credits under subsection a. of this section and subsection a. of section 6 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) are not in excess of the amount of credits available.

      d.   A taxpayer shall submit to the director a report to verify the taxpayer's tax credit claim.  The report shall include a certification from an institution of higher education, a comprehensive high school, a county vocational school, or a nonprofit organization that the assistance ¹[is to be] was¹ used for an approved pre-employment and work readiness training program¹,¹ and ¹shall include¹ such other information as ¹[shall be determined by]¹ the director ¹may require¹.  The certification shall be provided to the taxpayer and a copy of the certification shall be included in the filing of a return that includes a claim for a tax credit allowed pursuant to this section.

 

     6.    a.  A taxpayer, upon approval of an application to the director, 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 100 percent of the amount of assistance provided by the taxpayer to an institution of higher education, comprehensive high school, county vocational school, or nonprofit organization during a taxable year commencing on or after January 1 next following the enactment of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) for an approved pre-employment and work readiness training program established in ¹[partnership] agreement¹ with an ¹educational¹ institution ¹[of higher education]¹ or a nonprofit organization pursuant to section 3 of P.L.    , c.     (C.    ) (pending before the Legislature as this bill).

      b.   No tax credit shall be allowed pursuant to this section for any costs or expenses included in the calculation of any other tax credit or exemption granted pursuant to a claim made on a tax return filed with the director, or included in the calculation of an award of business assistance or incentive, for a period of the time that coincides with the taxable year, for which a tax credit authorized pursuant to this section is allowed.  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 N.J.S.54A:1-1 et seq. for a taxable year, shall be as prescribed by the director.  The amount of the credit applied against the New Jersey gross income tax imposed pursuant to N.J.S.54A:1-1 shall not reduce a taxpayer's tax liability to an amount less than zero.

      c.   (1)  A business entity that is classified as a partnership for federal income tax purposes shall not be allowed a tax credit pursuant to this section directly, but the amount of tax credit of a taxpayer in respect to a distributive share of entity income shall be determined by allocating to the taxpayer that proportion of the tax credit acquired by the entity that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the entity for its taxable year ending within or with the taxpayer's taxable year.

      (2)  A New Jersey S Corporation shall not be allowed a tax credit pursuant to this section directly, but the amount of the tax 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 tax 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.   The value of tax credits approved by the director pursuant to subsection a. of this section and pursuant to subsection a. of section 5 of P.L.    , c.   (C.       ) (pending before the Legislature as this bill) shall not exceed a cumulative total of $12,000,000 in State fiscal year ¹[2020] 2023¹ and in State each fiscal year thereafter to apply against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) and the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.  If the cumulative total amount of tax credits allowed to taxpayers for taxable years or privilege period commencing during a single fiscal year under subsection a. of this section and subsection a. of section 5 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) exceeds the amount of tax credits available in that fiscal year, then taxpayers who have first applied for and have not been allowed a tax credit for that reason shall be allowed, in the order in which they have submitted an application, the amount of tax credit on the first day of the next succeeding fiscal year in which tax credits under subsection a. of this section and subsection a. of section 5 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) are not in excess of the amount of credits available.

      e.   A taxpayer shall submit to the director a report to verify the taxpayer's tax credit claim.  The report shall include a certification from an institution of higher education, ¹a¹ comprehensive high school, ¹a¹ county vocational school, or ¹a¹ nonprofit organization that the assistance ¹[is to be] was¹ used for an approved pre-employment and work readiness training program¹,¹ and ¹shall include¹ such other information ¹[as shall be determined by]¹ the director ¹may require¹.  The certification shall be provided to the taxpayer and a copy of the certification shall be included in the filing of a return that includes a claim for a tax credit allowed pursuant to this section.

 

        ¹7.    Following two years from the effective date of this act, the Department of State shall prepare, or cause to be prepared, an appropriate study and analysis of the efficacy of the training programs and tax credits, including but not limited to, employment and education outcomes of participants and the costs and benefits of the programs and tax credits to the State. Upon its completion, copies of the report shall be transmitted to the Governor and the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).¹

 

        ¹8.  There is appropriated from the General Fund to the Department of Labor and Workforce Development and the Division of Taxation such funds as are necessary to implement the provisions and to effectuate the purposes of this act.¹

 

     ¹[7.]  9.¹    The Commissioner of Labor and Workforce Development shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate sections 3 and 4 of this act.

 

     ¹[9.]  10.¹  The Director of the Division of Taxation in the Department of the Treasury shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate sections 5 and 6 of this act.

 

     ¹[9.] 11.¹   This act shall take effect ¹[immediately] 180 days following the date of enactment,¹ and sections 5 and 6 shall apply to privilege periods and taxable years beginning on or after the January 1 next following the date of enactment.