Bill Text: NJ S2169 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides corporation business tax and gross income tax credits for businesses that employ apprentices in DOL registered apprenticeships.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Labor Committee [S2169 Detail]
Download: New_Jersey-2024-S2169-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator M. TERESA RUIZ
District 29 (Essex and Hudson)
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Provides corporation business tax and gross income tax credits for businesses that employ apprentices in DOL registered apprenticeships.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing corporation business tax and gross income tax credits for businesses that employ certain apprentices, supplementing 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. (1) For privilege periods beginning on or after January 1, 2023, a taxpayer shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period in an amount determined pursuant to this subsection for each apprentice employed pursuant to a registered apprenticeship with the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor.
(2) (a) The amount of tax credit allowed under this subsection shall be $1,000 per apprentice per privilege period.
(b) The amount for a particular apprentice shall be increased by $2,000 if the apprentice is a veteran, was eligible to receive benefits under the Work First New Jersey program or the Supplemental Nutrition Assistance Program within twelve months preceding the beginning of the apprenticeship, is a displaced worker, or was previously incarcerated.
(c) The amount for a particular apprentice shall be increased by $2,000 if the apprentice belongs to a group that is underrepresented in that career field based on their race, color, religion, national origin, sex, sexual orientation, disability, or age.
(d) The amounts described in this paragraph shall be annually adjusted according to any adjustments in the Statewide average weekly wage.
(3) For the taxpayer to claim the credit for a particular apprentice, that apprentice shall have been employed by the taxpayer for at least seven months of the privilege period. The credit for employment of a particular apprentice may not be taken for employment in more than four privilege periods.
b. 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 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 pursuant to this section 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. No apprenticeship program established in connection with a tax credit provided pursuant to this section shall:
(1) facilitate, induce, encourage or assist any replacement or displacement of currently employed workers by trainees, including partial displacement by means such as reduced hours;
(2) replace, supplant, compete with or duplicate in any way existing approved apprenticeship programs; or
(3) impair any existing collective bargaining agreement.
d. For the purposes of this section, "displaced worker" means a worker who:
(1) Is unemployed, and:
(a) Is currently receiving unemployment benefits pursuant to R.S.43:21-1 et seq. or any federal or State unemployment benefit extension; or
(b) Has exhausted eligibility for the benefits or extended benefits during the preceding 52 weeks; or
(2) Meets the criteria set by the Workforce Innovation and Opportunity Act, Pub.L.113-128 (29 U.S.C. s.3101 et seq.), to be regarded as a "dislocated worker" pursuant to that act.
2. a. (1) For taxable years beginning on or after January 1, 2023, a taxpayer shall be allowed a credit against the New Jersey gross income tax due pursuant to N.J.S.54A:1-1 et seq. in an amount determined pursuant to this subsection for each apprentice employed pursuant to a registered apprenticeship with the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor.
(2) (a) The amount of tax credit allowed under this subsection shall be $1,000 per apprentice per privilege period.
(b) The amount for a particular apprentice shall be increased by $2,000 if the apprentice is a veteran, was eligible to receive benefits under the Work First New Jersey program or the Supplemental Nutrition Assistance Program within twelve months preceding the beginning of the apprenticeship, is a displaced worker, or was previously incarcerated.
(c) The amount for a particular apprentice shall be increased by $2,000 if the apprentice belongs to a group that is underrepresented in that career field based on their race, color, religion, national origin, sex, sexual orientation, disability, or age.
(d) The amounts described in this paragraph shall be annually adjusted according to any adjustments in the Statewide average weekly wage.
(3) For the taxpayer to take the credit for a particular apprentice, that apprentice shall have been employed by the taxpayer for at least seven months of the taxable year. The credit for employment of a particular apprentice may not be taken for employment in more than four taxable years.
b. The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the New Jersey gross income tax due 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 due pursuant to N.J.S.54A:1-1 et seq. shall not reduce a taxpayer's New Jersey gross income tax liability to an amount less than zero.
c. No apprenticeship program established in connection with a tax credit provided pursuant to this section shall:
(1) facilitate, induce, encourage or assist any replacement or displacement of currently employed workers by trainees, including partial displacement by means such as reduced hours;
(2) replace, supplant, compete with or duplicate in any way existing approved apprenticeship programs; or
(3) impair any existing collective bargaining agreement.
d. For the purposes of this section, "displaced worker" means a worker who:
(1) Is unemployed, and:
(a) Is currently receiving unemployment benefits pursuant to R.S.43:21-1 et seq. or any federal or State unemployment benefit extension; or
(b) Has exhausted eligibility for the benefits or extended benefits during the preceding 52 weeks; or
(2) Meets the criteria set by the Workforce Innovation and Opportunity Act, Pub.L.113-128 (29 U.S.C. s.3101 et seq.), to be regarded as a "dislocated worker" pursuant to that act.
3. This act shall take effect immediately.
STATEMENT
This bill provides businesses with a credit against the corporation business tax or the gross income tax for each employee of the business employed pursuant to an apprenticeship registered with the United States Department of Labor (USDOL).
The bill gives businesses a credit of $1,000 for each apprentice employed for seven months or more during the taxable year. The credit may be increased by $2,000 if the apprentice is a veteran, was eligible to receive benefits under the Work First New Jersey program or the Supplemental Nutrition Assistance Program within twelve months preceding the beginning of the apprenticeship, is a displaced worker, or was previously incarcerated. Similarly, the credit may be increased by $2,000 if the apprentice belongs to a group that is underrepresented in that career field based on their race, color, religion, national origin, sex, sexual orientation, disability, or age. These two bonus credits are additive, so that a qualifying apprentice may lead to a $5,000 tax credit. The tax credit amounts will be annually adjusted according to any adjustments in the Statewide average weekly wage.
An employer may take the credit for a particular apprentice for a maximum of four taxable years of the apprentice's employment.
The purpose of the tax credit is to encourage employers to add highly skilled workers to New Jersey's workforce. The USDOL-registered apprenticeships combine technical instruction with structured on-the-job experience to match individuals with employers in need of qualified, skilled workers. The range of occupations represented by registered apprenticeships is vast, including traditional industries such as construction and manufacturing and emerging fields such as healthcare and energy.
