New Jersey-2012-S1585-Introduced

An Act providing corporation business tax and gross income tax credits for employers who employ certain individuals who have received training from certain community rehabilitation programs, supplementing P.L.1945, c.162 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 3% of the salary and wages paid by the taxpayer during the privilege period to a qualified employee residing in New Jersey during the privilege period but not to exceed $1,000 for each qualified employee for the privilege period.

b. As used in this section:

"Community rehabilitation program" means a program that provides directly, or facilitates the provision of, vocational rehabilitation services to individuals with disabilities and that singly or in combination enables an individual with a disability to maximize opportunities for employment, including career advancement.

"Qualified employee" means a salaried or hourly employee of the taxpayer who was trained in a community rehabilitation program, who regularly performs a normal workweek pursuant to a structured work arrangement.

"Structured work arrangement" means a written contract between the taxpayer and employee defining the responsibilities of the taxpayer and employee with respect to a job.

c. The amount of the credits 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 (C.54:10A-5), shall not 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 (C.54:10A-5). The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as 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 for any other reason 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 3% of the salary and wages paid by the taxpayer during the taxable year to a qualified employee residing in New Jersey during the taxable year but not to exceed $1,000 for each qualified employee for the taxable year.

b. As used in this section:

"Qualified employee" means any salaried or hourly employee of the taxpayer who was trained in a community rehabilitation program, who regularly performs a normal workweek pursuant to a structured work arrangement.

"Structured work arrangement" means a written contract between the taxpayer and employee defining the responsibilities of the taxpayer and employee with respect to a job.

c. The amount of the credits applied under this section for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall not reduce a taxpayer's tax liability otherwise due in any taxable year by more than 50% of the amount of tax otherwise due. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be as 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 taxable year due to the limitations of this subsection or for any other reason may be carried over, if necessary to the seven taxable years following the taxable year for which the credit was allowed.

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. For the purposes of subsection c. of this section, the amount of tax liability which would be the taxpayer's tax liability otherwise due is that proportion of the total tax 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. The amount of credit of a taxpayer in respect of a distributive share of partnership income otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection or for any other reason may be carried over by the taxpayer, if necessary to the seven taxable years following the taxable year for which the credit was allowed.

3. This act shall take effect immediately but shall apply to privilege periods and taxable years beginning after the date of enactment.

STATEMENT

This bill provides corporation business and gross income tax credits to employers who employ certain individuals who have received training from certain community rehabilitation programs. The bill allows employers a credit equal to three percent of the wages and salaries paid to qualified employees, but not more than $1,000 for each qualified employee, during the tax period. The bill requires qualified employees to work pursuant to a structured plan approved by the employer and to have been trained in a community rehabilitation program. The bill defines a community rehabilitation programs as a program that provides directly, or facilitates the provision of, vocational rehabilitation services to individuals with disabilities and singly or in combination enable an individual with a disability to maximize opportunities for employment, including career advancement. Generally, the amount of the tax credit, in addition to any other tax credits received by the taxpayer may not exceed 50% of the tax liability otherwise due.