Bill Text: NJ S1518 | 2014-2015 | Regular Session | Introduced
Bill Title: Allows business tax credit to employers giving paid leave to employees for service with volunteer emergency services organizations under corporation business tax and gross income tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-27 - Introduced in the Senate, Referred to Senate Law and Public Safety Committee [S1518 Detail]
Download: New_Jersey-2014-S1518-Introduced.html
Sponsored by:
Senator RICHARD J. CODEY
District 27 (Essex and Morris)
SYNOPSIS
Allows business tax credit to employers giving paid leave to employees for service with volunteer emergency services organizations under corporation business tax and gross income tax.
CURRENT VERSION OF TEXT
As introduced.
An Act allowing a tax credit to employers of active members of certain volunteer emergency services organizations, supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and chapter 4 of Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Active duty," as performed by an active member of a volunteer emergency services organization, means direct participation in the organization's response to emergency calls or alarms, extinguishing of fires, or other provision of emergency services for the protection of life and property from harm.
"Active member" means a member of a volunteer emergency services organization who, during the entire privilege period with respect to which a credit is claimed under subsection b. of this section, (1) was a member in good standing of the organization, and (2) received no remuneration for serving with the organization. Benefits accrued or received under the "Emergency Services Volunteer Length of Service Award Program Act," P.L.1997, c.388 (C.40A:14-183 et seq.) shall not be deemed to be remuneration for the purposes of this paragraph.
"Ancillary duty," as performed by an active member of a volunteer emergency services organization, means attendance at official meetings of the organization, participation in authorized drills or other training conducted by the organization, and regular performance of any other duty, other than active duty, that may be required to maintain membership in good standing in the organization, but shall not include fund-raising or social activity.
"Volunteer emergency services organization" means a fire company, a part‑paid fire department, a volunteer first aid or rescue squad or association, or an emergency police force or emergency management unit that is located in New Jersey and provides emergency services to the people of this State.
b. A taxpayer that, for the entire duration of a privilege period, employed on a full-time basis a person who was an active member of a volunteer emergency services organization 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 one-half of the minimum hourly wage rate, in effect pursuant to Article I, paragraph 23 of the State Constitution, multiplied by the total of (1) the number of hours of active duty, not exceeding 100 hours, plus (2) the number of hours of ancillary duty, not exceeding 15 hours, that the employee rendered during regular working hours with the employer in that privilege period to or on behalf of the organization, and for the performance of which active or ancillary duty the employer allowed paid leave to the employee.
c. The priority in which credits allowed pursuant to this section and any other credits shall be taken against the tax imposed pursuant to section 5 of P.L.1945, c.162 shall be determined by the Director of the Division of Taxation in the Department of the Treasury. Credits allowable pursuant to this section shall be applied in the order of the credits' privilege periods. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162, for a privilege period shall not, in combination with any other credits applied, exceed 50% 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. The amount of any credit otherwise allowable under this section that cannot be applied for the privilege period due to the foregoing limitations of this subsection may be carried over, if necessary, to the five privilege periods following the period for which the amount was allowed.
d. The Director of the Division of Taxation shall adopt, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B‑1 et seq.), such rules and regulations concerning the certification by any volunteer emergency services organization of the performance, by an active member of the organization, of active duty and ancillary duty to or on behalf of the organization, together with any other appropriate rules and regulations, as may be necessary to effectuate the purposes of this section.
2. a. As used in this section:
"Active duty," as performed by an active member of a volunteer emergency services organization, means direct participation in the organization's response to emergency calls or alarms, extinguishing of fires, or other provision of emergency services for the protection of life and property from harm.
"Active member" means a member of a volunteer emergency services organization who, during the entire taxable year with respect to which a credit is claimed under subsection b. of this section, (1) was a member in good standing of the organization, and (2) received no remuneration for serving with the organization. Benefits accrued or received under the "Emergency Services Volunteer Length of Service Award Program Act," P.L.1997, c.388 (C.40A:14-183 et seq.) shall not be deemed to be remuneration for the purposes of this paragraph.
"Ancillary duty," as performed by an active member of a volunteer emergency services organization, means attendance at official meetings of the organization, participation in authorized drills or other training conducted by the organization, and regular performance of any other duty, other than active duty, that may be required to maintain membership in good standing in the organization, but shall not include fund-raising or social activity.
"Volunteer emergency services organization" means a fire company, a part‑paid fire department, a volunteer first aid or rescue squad or association, or an emergency police force or emergency management unit that is located in New Jersey and provides emergency services to the people of this State.
b. A taxpayer that, for the entire duration of a taxable year, employed on a full-time basis a person who was an active member of a volunteer emergency services organization shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to one-half of the minimum hourly wage rate, in effect pursuant to Article I, paragraph 23 of the State Constitution, multiplied by the total of (1) the number of hours of active duty, not exceeding 100 hours, plus (2) the number of hours of ancillary duty, not exceeding 15 hours, that the employee rendered in that taxable year to or on behalf of the organization during regular working hours with the employer, and for the performance of which active or ancillary duty the employer allowed paid leave to the employee.
c. 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. For the purposes of subsection b. of this section, the amount of tax liability which would be otherwise due of a taxpayer is that proportion of the total liability of the taxpayer that the taxpayer's share of the partnership income or gain included in gross income bears to the total gross income of the taxpayer.
d. The priority in which credits allowed pursuant to this section and any other credits shall be taken against the tax imposed pursuant to N.J.S.54A:1-1 et seq. shall be determined by the Director of the Division of Taxation in the Department of the Treasury. The amount of the credit applied under this section against the tax otherwise due for a taxable year shall not, in combination with any other credits applied, exceed 50% of the tax liability otherwise due under N.J.S.54A:1-1 et seq. The amount of any credit otherwise allowable under this section that cannot be applied for the taxable year due to the foregoing limitations of this subsection may be carried over, if necessary, to the five taxable years following the taxable year for which the amount was allowed.
e. The Director of the Division of Taxation shall adopt, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B‑1 et seq.), such rules and regulations concerning the certification by any volunteer emergency services organization of the performance, by an active member of the organization, of active duty and ancillary duty to or on behalf of the organization, together with any other appropriate rules and regulations, as may be necessary to effectuate the purposes of this section.
3. This act shall take effect immediately; section 1 shall apply with respect to privilege periods ending on or after July 1 next following the date of enactment, and section 2 shall apply with respect to taxable years beginning on or after January 1 next following the date of enactment.
STATEMENT
This bill provides income tax credits for businesses providing full-time employees paid leave during regular working hours to serve in a volunteer emergency service organization. The purpose of the bill is to encourage employers to provide volunteer emergency service personnel with wages when duty calls during regular working hours.
The bill's credits are available under the gross income tax and corporation business tax for paid leave provided to employees for working hours spent serving a volunteer emergency services organization, such as a fire company, part paid fire department, volunteer first aid, volunteer rescue squad, qualified emergency police force, or qualified emergency management unit.
The amount of available credit is calculated by multiplying one-half of the minimum hourly wage ($8.25) against the number of emergency service hours coinciding with regular working hours for which paid leave was granted. The bill limits the number of creditable active duty hours at 100 and creditable ancillary duty (administrative) hours at 15. The maximum annual credit amount per employee is slightly less than $475.
