Bill Text: NJ S4143 | 2026-2027 | Regular Session | Introduced
Bill Title: Requires State to permit foundation of association health plan and other multiple employer welfare arrangements; provides tax credit to members of plan.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-05-11 - Introduced in the Senate, Referred to Senate Commerce Committee [S4143 Detail]
Download: New_Jersey-2026-S4143-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Requires State to permit formation of association health plan and other multiple employer welfare arrangements; provides tax credit to members of plan.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning group health plans and health benefits plans and supplementing P.L.2001, c.352 (C.17B:27C-1 et seq.), 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. Notwithstanding any other provision to the contrary, any chamber of commerce, trade association, or nonprofit business coalition operating in good standing in the State for at least two years may form an association health plan or other multiple employer welfare arrangement (MEWA) with its members and shall be subject to all applicable State and federal laws governing those plans.
b. Any member of an association health plan or MEWA under this subsection shall be entitled to a tax credit of up to $1,000 per employee per year for any privilege period in which the member is enrolled in the association health plan or MEWA.
c. If federal law or regulation expands the entities that may form association health plans for the purpose of obtaining group health coverage to be treated as a single employer for purposes of the federal "Employee Retirement Income Security Act of 1974," 29 U.S.C. s.1001 et seq., and permits those plans to be regulated under federal law as large-group coverage, the State shall treat any association health plan that meets the federal criteria as a single employer that is entitled to large-group coverage under State law.
2. a. The Commissioner of Banking and Insurance shall develop and implement a public awareness and outreach campaign to inform chambers of commerce, trade associations, and nonprofit business coalitions, member businesses, employees, and persons residing and working in the State about coverage options pursuant to P.L. , c. (C. )(pending before the Legislature as this bill). The program shall include the distribution of written materials in English, Spanish and any language that is the primary language of 10 percent or more of the registered voters in the State to all chambers of commerce, trade associations, and nonprofit business coalitions. The commissioner shall allocate not less than $500,000 to the public awareness and outreach campaign, which shall be regarded as a cost of administration of the public awareness and outreach campaign.
b. The Department of Banking and Insurance may allocate funds to provide grants to chambers of commerce, trade associations, and nonprofit business coalitions, in a form and manner to be determined by the Commissioner of Banking and Insurance. The purpose of the grants shall be to offset administrative costs of plan management.
3. a. A taxpayer that is member of an association health plan or MEWA administered in accordance with section 1 or 2 of P.L. , c. (C. )(pending before the Legislature as this bill) shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for a privilege period in an amount up to $1,000 per employee.
b. The credit allowed pursuant to this section shall not exceed $20,000 annually for each taxpayer per privilege period.
c. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed by law shall be as prescribed by the director. 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, together with any other credits allowed by law, 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-5).
d. The amount of the tax credit otherwise allowable under this section which cannot be applied for the privilege period may be carried forward, if necessary, to the four privilege periods following the privilege period for which a portion of the tax credit was allowed.
e. 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 time that coincides with the privilege period for which a tax credit pursuant to this section is allowed.
f. A taxpayer shall apply, in a form and manner to be determined by the director, for the tax credit provided pursuant to this section.
g. The credit allowed pursuant to this section shall only be available for the privilege periods commencing on or after January 1, 2027.
4. a. A taxpayer that is member of an association health plan or MEWA administered in accordance with section 1 or 2 of P.L. , c. (C. )(pending before the Legislature as this bill) shall be allowed a credit against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year in an amount up to $1,000 per employee.
b. The credit allowed pursuant to this section shall not exceed $20,000 annually for each taxpayer per taxable year.
c. The amount of the credit allowed pursuant to this section shall be applied against the tax otherwise due under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., after all other credits and payments. If the credit exceeds the amount of tax liability otherwise due, that amount of excess shall be an overpayment for the purposes of N.J.S.54A:9-7, provided, however, that subsection (f) of N.J.S.54A:9-7 shall not apply.
d. 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 time that coincides with the taxable year, for which a tax credit authorized pursuant to this section is allowed.
e. (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 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.
f. A taxpayer shall apply, in a form and manner to be determined by the director, for the tax credit provided pursuant to this section.
g. The credit allowed pursuant to this section shall only be available for the taxable years commencing on or after January 1, 2027.
5. This act shall take effect on January 1st next following the date of enactment, except that the Commissioner of Banking and Insurance may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill provides that any chamber of commerce, trade association, or nonprofit business coalition operating in good standing in the State for at least two years may form an association health plan or other multiple employer welfare arrangement (MEWA) with its members and shall be subject to all applicable State and federal laws governing those plans.
The bill provides that if federal law or regulation expands the entities that may form association health plans for the purpose of obtaining group health coverage to be treated as a single employer for purposes of the federal "Employee Retirement Income Security Act of 1974" (ERISA), and permits those plans to be regulated under federal law as large-group coverage, the State will be required to treat any association health plan that meets the federal criteria as a single employer that is entitled to large-group coverage under State law.
This bill provides corporation business tax (CBT) credits and gross income tax (GIT) credits to member businesses of association health plans of multiple employer welfare arrangements formed by a chamber of commerce, trade association, or nonprofit business coalition.
The bill provides member businesses with tax credits in an amount up to $1,000 per employee during the preceding privilege period or taxable year. The bill caps the credit amount at $20,000 annually for each taxpayer per privilege period and taxable year, and the credit is only available for the privilege periods and taxable years commencing on or after January 1, 2027.
The bill requires the Commissioner of Banking and Insurance to develop and implement a public awareness and outreach campaign to inform chambers of commerce, trade associations, and nonprofit business coalitions, member businesses, employees, and persons residing and working in the State about coverage options. To that end, it directs the commissioner to allocate not less than $500,000 to the program, which shall be regarded as a cost of administration of the public awareness and outreach campaign.
The Department of Banking and Insurance may allocate funds to provide grants to chambers of commerce, trade associations, and nonprofit business coalitions, in a form and manner to be determined by the Commissioner of Banking and Insurance. The purpose of the grants will be to offset administrative costs of plan management.
