Bill Text: NJ A4028 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides corporate tax credit to corporations making contribution to Child Development Fund in DOE.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-19 - Introduced, Referred to Assembly Education Committee [A4028 Detail]
Download: New_Jersey-2010-A4028-Introduced.html
Sponsored by:
Assemblywoman BONNIE WATSON COLEMAN
District 15 (Mercer)
SYNOPSIS
Provides corporate tax credit to corporations making contribution to Child Development Fund in DOE.
CURRENT VERSION OF TEXT
As introduced.
An Act providing corporate tax credits to establish comprehensive child development programs and supplementing P.L.1945, c.162 (C.54:10A-1 et seq.) and Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Beginning in the first State fiscal year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Director of the Division of Taxation in the Department of the Treasury shall establish a program to provide tax credits to corporations which contribute funding to the Child Development Fund established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Subject to the restrictions established pursuant to subsection d. of this section, a taxpayer, upon application to the Director of the Division of Taxation in the Department of the Treasury, 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 equal to 100% of the contribution made by the taxpayer to the Child Development Fund during the privilege period; provided that the taxpayer shall designate at the time the contribution is made that the contribution is made pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The order of priority of the credit allowed under P.L. , c. (C. ) (pending before the Legislature as this bill) and any other credits allowed by law shall be as prescribed by the director. The amount of the credit applied under P.L. , c. (C. ) (pending before the Legislature as this bill) against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period 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). An unused amount of credit shall expire at the end of the privilege period.
d. In aggregate, the total tax credit of all participating corporations shall not exceed $360,000,000 in any State fiscal year. If the sum of the amount of tax credits authorized pursuant to this section in a State fiscal year exceeds the aggregate annual limits established pursuant to this subsection, tax credits shall be allowed in the order in which contributions are made until the limit is reached.
2. There is hereby established in the Department of Education a fund entitled the "Child Development Fund." The fund shall be credited with any contributions made by corporations pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). All interest or other income or earnings derived from the investment or reinvestment of moneys in the fund shall be credited to the fund. The moneys in the fund are specifically dedicated to fund the Child Development Program established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. a. In the first State fiscal year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Commissioner of Education, in consultation with the Commissioners of Health and Senior Services and Human Services, shall establish the Child Development Program. Under the program, the Commissioner of Education shall develop an application process to award competitive grants to partnerships comprised of a school district and not-for-profit entities to develop comprehensive child development programs that coordinate and provide educational, health, and social services to children and families in a specific geographic area. Information included in the application shall include, but need not be limited to, the following:
(1) a listing of the school district and not-for-profit entities that shall be included in the partnership;
(2) an identification of the geographic area in which the partnership will provide services;
(3) a description of the demographic characteristics of the geographic area in which the partnership will provide services, and the service needs that are not currently being met in that area;
(4) a description of the services that will be provided, including, but not limited to:
(i) services for expectant parents and parents or guardians with children three years old and younger;
(ii) preschool education programs for four-year old children;
(iii) family support centers;
(iv) dropout prevention programs;
(v) programs designed to facilitate the transition from elementary school to middle school;
(vi) extended school day and school year programs;
(vii) leadership development programs for adolescents;
(viii) fitness and nutrition programs that target youth;
(ix) community development and revitalization programs; and
(x) health services, including medical and dental clinics;
(5) a projected budget that details the partnership's projected expenditures for five fiscal years;
(6) a list of quantitative objectives to be accomplished in each of those five years; and
(7) a description of the partnership's administrative structure.
b. In the first year of the program, no more than one grant shall be awarded to a partnership in each of the northern, central, and southern regions of the State. In each subsequent year, a grant shall be awarded to each partnership that received a grant in the first year, unless a partnership elects to relinquish the grant or the Commissioner of Education deems the partnership ineligible for the grant pursuant to subsection d. of this section. In each fiscal year, the total grants awarded shall not exceed the amount of funds available in the Child Development Fund.
c. No later than August 1 of each year, a partnership that received a grant shall submit an annual report to the commissioner. The report shall include information on: the number of children and families to whom services were provided during the previous year, a summary of the services provided, the average cost of the services provided, and an analysis of the progress made towards meeting the objectives for the year.
d. After an initial grant is awarded, the commissioner shall have the authority to discontinue a grant to a partnership in any subsequent year if the commissioner determines that the partnership has misappropriated grant funding or is demonstrably incapable of providing the services detailed in the initial grant application. In the event that the commissioner discontinues a grant to a partnership, the commissioner shall accept new applications, pursuant to the provisions of subsection a. of this section, within the region of the partnership whose grant was discontinued.
4. This act shall take effect immediately.
STATEMENT
This bill provides a 100% tax credit to corporations making donations to the Child Development Fund to be established in the Department of Education. The total amount of tax credits in a single fiscal year will be capped at $360 million. Revenue in the fund will be used to support the Child Development Program that will be developed and administered by the Commissioner of Education, in consultation with the Commissioners of Health and Senior Services and Human Services. The program will provide competitive grants to partnerships between school districts and not-for-profit entities to provide educational, health, and social services to children and their families, including, but not limited to, programs for expectant parents and parent or guardians with children three years old and younger; preschool education for four-year old children; family support services; dropout prevention programs; programs that facilitate students' transitions from elementary school to middle school, extended school day and school year programs; leadership development programs, fitness and nutrition programs, community development, and the provision of health services.
The purpose of this bill is to support the creation of social service providers in the State that mirror the approach and success of programs operated by the Harlem's Children Zone.
