Bill Text: NJ S4041 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides corporation business and gross income tax credits for employment of community health workers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-14 - Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee [S4041 Detail]
Download: New_Jersey-2024-S4041-Introduced.html
Sponsored by:
Senator JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Provides corporation business and gross income tax credits for employment of community health workers.
CURRENT VERSION OF TEXT
As introduced.
An Act providing credits against the corporation business and gross income tax for employing community health workers and 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. 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 15 percent of the wages paid by the taxpayer during the privilege period to qualified community health workers, but not to exceed $2,500 per qualified community health worker.
b. (1) In order to claim the credit allowed pursuant to this section, a taxpayer shall apply to the Commissioner of Health for certification that one or more of the taxpayer's employees is a qualified community health worker for purposes of receiving the credit. The commissioner shall establish a process by which a taxpayer may submit an application for certification.
(2) The commissioner shall review each application for certification submitted by a taxpayer in accordance with this section and make a determination regarding the approval of an application for certification within 90 calendar days of the date a complete application is received. The commissioner shall issue a written certification to each taxpayer whose application has been reviewed and approved by the commissioner in accordance with this section within five calendar days of the date the commissioner's determination is made. A copy of the certification shall be included in the filing of a return that includes a claim for the credit.
(3) If the commissioner fails to make a determination regarding an application submitted pursuant to this subsection within 90 calendar days of the date the application is received, or if the commissioner fails to issue a written certification within five calendar days of the date a determination is made, the application shall be deemed to have been approved and the written certification shall be deemed to have been issued by the commissioner. Each taxpayer that submitted an application in accordance with this subsection but fails to receive a determination from the commissioner within 90 calendar days of the date the application is submitted, or fails to receive a written certification from the commissioner within five calendar days of the date of the commissioner's determination is made, shall include a copy of the taxpayer's application when filing a return that includes a claim for the credit allowed in accordance with subsection a. of this section.
c. The order of priority of the application of the credit allowed under this section and any other credits allowed by law shall be as prescribed by the Director of the Division of Taxation. The amount of 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, together with any other payments, credits, deductions, and adjustments allowed by law, shall not exceed 50 percent of the tax liability otherwise due and shall not reduce the tax liability for a privilege period 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 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 under other provisions of P.L.1945, c.162 (C.54:10A-1 et seq.) may be carried forward, if necessary, to the five privilege periods following the privilege period for which the credit is allowed.
d. As used in this section:
"Commissioner of Health" or "commissioner" means the Commissioner of the New Jersey Department of Health.
"Community health worker" means a professional who is certified to connect health care consumers with health care providers and resources, with the goal of facilitating access to health care in medically underserved communities and educating health care providers about the unique obstacles faced by members of that community when seeking access to health care.
"Qualified community health worker" means a community health worker who:
(1) is employed by the taxpayer for at least 10 hours per week on a permanent basis;
(2) has completed a comprehensive training program for community health workers authorized by the commissioner;
(3) has received a certification of completion upon successful completion of the comprehensive training program; and
(4) is not employed by the taxpayer as an independent contractor or in a temporary or seasonal capacity.
2. a. A taxpayer 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 15 percent of the wages paid by the taxpayer during the taxable year to qualified community health workers, but not to exceed $2,500 per qualified community health worker.
b. (1) In order to claim the credit allowed pursuant to this section, a taxpayer shall apply to the Commissioner of Health for certification that one or more of the taxpayer's employees is a qualified community health worker for purposes of receiving the credit. The commissioner shall establish a process by which a taxpayer may submit an application for certification.
(2) The commissioner shall review each application for certification submitted by a taxpayer in accordance with this section and make a determination regarding the approval of an application for certification within 90 calendar days of the date a complete application is received. The commissioner shall issue a written certification to each taxpayer whose application has been reviewed and approved by the commissioner in accordance with this section within five calendar days of the date the commissioner's determination is made. A copy of the certification shall be included in the filing of a return that includes a claim for the credit.
(3) If the commissioner fails to make a determination regarding an application submitted pursuant to this subsection within 90 calendar days of the date the application is received, or if the commissioner fails to issue a written certification within five calendar days of the date a determination is made, the application shall be deemed to have been approved and the written certification shall be deemed to have been issued by the commissioner. Each taxpayer that submitted an application in accordance with this subsection but fails to receive a determination from the commissioner within 90 calendar days of the date the application is submitted, or fails to receive a written certification from the commissioner within five calendar days of the date of the commissioner's determination is made, shall include a copy of the taxpayer's application when filing a return that includes a claim for the credit allowed in accordance with subsection a. of this section.
c. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the credit directly under the gross income tax, but the amount of credit of the taxpayer in respect of a distributive share of partnership income 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.
(2) A taxpayer that is a New Jersey S corporation shall not be allowed the credit directly under the gross income tax, but the amount of 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 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.
d. The order of priority of the application of the credit allowed under this section and any other credits allowed by law shall be as prescribed by the secretary. The amount of a tax credit allowed pursuant to this section shall not exceed 50 percent of the amount of tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. The amount of a tax credit allowed pursuant to this section, together with any payments, credits, deductions, and adjustments allowed by law, shall not reduce the amount of tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq. to an amount less than zero. The amount of credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection may be carried forward, if necessary, to the five taxable years following the taxable year for which the credit is allowed.
e. As used in this section:
"Commissioner of Health" or "commissioner" means the commissioner of the New Jersey Department of Health.
"Community health worker" means a professional who is certified to connect health care consumers with health care providers and resources, with the goal of facilitating access to health care in medically underserved communities and educating health care providers about the unique obstacles faced by members of that community when seeking access to health care.
"Qualified community health worker" means a community health worker who:
(1) is employed by the taxpayer for at least 10 hours per week on a permanent basis;
(2) has completed a comprehensive training program for community health workers authorized by the commissioner;
(3) has received a certification of completion upon successful completion of the comprehensive training program; and
(4) is not employed by the taxpayer as an independent contractor or in a temporary or seasonal capacity.
3. This act shall take effect immediately and shall apply to privilege periods and taxable years beginning on or after January 1 of the year next following the date of enactment.
STATEMENT
This bill provides corporation business and gross income tax credits for taxpayers who employ community health workers. Specifically, the credits would be for 15 percent of the wages paid by the taxpayer during a privilege period or taxable year to qualified community health workers, but not to exceed $2,500 per qualified worker.
Community health workers are certified professionals who serve as liaisons between health care providers and the surrounding community in order to facilitate increased access to health care in medically underserved areas. These workers also help educate health care providers about many of the unique obstacles faced by members of the surrounding community when seeking access to health care.
In order to claim the credit provided under the bill, a taxpayer would be required to submit an application to the Commissioner of Health for certification that one or more of the taxpayer's employees is a qualified community health worker for purposes of receiving the credit. A copy of the certification would be required to be included with the taxpayer's tax return when such return is filed. The commissioner would be required to establish a process by which applications for certification may be submitted.
The bill defines a "qualified community health worker" as a community health worker who:
(1) is employed by the taxpayer for at least 10 hours per week on a permanent basis;
(2) has completed a comprehensive training program for community health workers authorized by the commissioner;
(3) has received a certification of completion upon successful completion of the comprehensive training program; and
(4) is not employed by the taxpayer as an independent contractor or in a temporary or seasonal capacity.
