Bill Text: NJ S4118 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes Inclusive Workplaces Program in EDA to provide grants and tax credits to encourage employer investment in workspaces inclusive of neurodivergent employees; appropriates $2.5 million.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-30 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S4118 Detail]
Download: New_Jersey-2024-S4118-Introduced.html
Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Establishes Inclusive Workplaces Program in EDA to provide grants and tax credits to encourage employer investment in workspaces inclusive of neurodivergent employees; appropriates $2.5 million.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Inclusive Workplaces Program and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.) and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
²Authority² means the New Jersey Economic Development Authority, established by section 4 of P.L.1974, c.80 (C.34:1B-4).
²Director² means the Director of the Division of Taxation in the Department of the Treasury.
²Eligible large-business employer² means an employer that has its headquarters or base of operations in this State; employs 150 or more employees; employs at least three full-time employees who identify as neurodivergent; and demonstrates a commitment to inclusive workplaces with a focus on neurodiverse inclusion.
²Eligible small-business employer² means an employer that has its headquarters or base of operations in this State; employs fewer than 150 employees; employs at least one full-time employee who identifies as neurodivergent; and demonstrates a commitment to inclusive workplaces with a focus on neurodiverse inclusion.
²Incentive program² means the Inclusive Workplaces Program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
2. a. The authority shall establish and administer the Inclusive Workplaces Program to provide grants and tax credits to encourage employers to invest in workspaces that are inclusive of neurodivergent employees
b. The incentive program shall consist of two program components, including:
(1) the issuance of grants to eligible small-business employers to support the development of neurodiversity-friendly workspaces, subject to the provisions of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
(2) the issuance of tax credits to eligible large-business employers that have implemented workplace adjustments that foster neurodiversity-friendly workspaces, subject to the provisions of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. a. The incentive program shall include the issuance of grants to eligible small-business employers to support the development of capital investments or workforce investments that are intended to foster a workplace environment that accommodates neurodivergent employees.
b. To qualify for the incentive program, an eligible small-business employer shall demonstrate to the authority that the eligible small-business employer:
(1) intends to incur costs for capital investments and workforce investments that are intended to foster a workplace environment that accommodates neurodivergent employees; and
(2) meets any other eligibility criteria that the authority deems appropriate.
c. An eligible small-business employer that seeks assistance under the incentive program shall submit an application to the authority in a form and manner prescribed by the authority. In addition to any other information that the authority may deem appropriate, the application shall require the applicant to submit information:
(1) demonstrating that the eligible small-business employer meets the eligibility criteria established pursuant to subsection b. of this section;
(2) outlining any proposed capital investments or workforce investments to be undertaken by the eligible small-business employer after the date of application, which capital investments or workforce investments are intended to foster a workplace environment that accommodates neurodivergent employees, including, but not limited to:
(a) sensory-friendly workspace layouts, such as quiet zones and lighting adjustments;
(b) adaptive equipment and technologies, such as noise-cancelling headphones and organization tools; and
(c) workforce training programs, such as staff mentorships and management seminars focused on neurodiversity.
d. (1) The authority shall review and approve applications submitted pursuant to this section on a rolling-basis, subject to the limitations set forth in subsection e. of this section. In reviewing applications, the authority shall give preference to applicants that demonstrate a commitment to implementing long-term measures to accommodate neurodivergent employees.
(2) Following approval of an application, but before the disbursement of grant funds, the authority shall require the employer to enter into a grant agreement. The grant agreement shall, at a minimum, specify the amount of the grant to be awarded to the eligible small-business employer.
e. The authority shall approve the issuance of no more than $2,500,000 in grants pursuant to this section during any calendar year. The value of each grant shall not exceed $25,000.
4. a. The incentive program shall include the issuance of tax credits to eligible large-business employers that have implemented capital investments or workforce investments that are intended to foster a workplace environment that accommodates neurodivergent employees.
b. To qualify for the incentive program, an eligible large-business employer shall demonstrate to the authority that the eligible large-business employer:
(1) incurred costs for capital investments and workforce investments that are intended to foster a workplace environment that accommodates neurodivergent employees
(2) meets any other eligibility criteria that the authority deems appropriate.
c. An eligible large-business employer that seeks assistance under the incentive program shall submit an application to the authority in a form and manner prescribed by the authority. In addition to any other information that the authority may deem appropriate, the application shall require the applicant to submit information:
(1) demonstrating that the eligible large-business employer meets the eligibility criteria established pursuant to subsection b. of this section;
(2) documenting any capital investments or workforce investments incurred by the eligible large-business employer prior to the date of application, which capital investments or workforce investments were intended to foster a workplace environment that accommodates neurodivergent employees, including but not limited to:
(a) sensory-friendly workspace layouts, such as quiet zones and lighting adjustments;
(b) adaptive equipment and technologies, such as noise-cancelling headphones and organization tools; and
(c) workforce training programs, such as staff mentorships and management seminars focused on neurodiversity.
d. (1) The authority shall review and approve applications submitted pursuant to this section on a rolling-basis, subject to the limitations set forth in subsection e. of this section. Upon approval of each application, the authority shall issue tax credits to the eligible large-business employer in an amount equal to $25,000 or 50 percent of the capital investments and workforce investments incurred by the eligible large-business employer, as documented pursuant to paragraph (2) of subsection c. of this section, whichever is less.
(2) Upon approval of any application for tax credits pursuant to this section, and upon the satisfaction of such additional requirements as the authority deems appropriate, the authority shall provide the eligible large-business employer and the director with a certificate of compliance indicating the amount of tax credits that the eligible large-business employer may apply against the employer's tax liability, subject to the provisions of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).
e. The authority shall approve the issuance of no more than $2,500,000 in tax credits pursuant to this section during any calendar year.
5. a. The tax credits issued by the authority pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) may be applied against a recipient's tax liability under the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.), the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and C.54:18A-3), section 1 of P.L.1950, c.231 (C.17:32-15), or N.J.S.17B:23-5. To claim the tax credit amount for any taxable period, the recipient shall submit to the director the certificate of compliance issued by the authority pursuant to subsection d. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), as applicable.
b. (1) (a) The director shall prescribe the order of priority of the application of the tax credit allowed under this section, together with any other credits allowed by law, against the tax imposed under section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period. The amount of the tax 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 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).
(b) The director shall prescribe the order of priority of the application of the tax credit allowed under this section, together with any other credits allowed by law, against the tax imposed under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year. The amount of the tax credit applied under this section against the tax imposed pursuant to N.J.S.54A:1-1 et seq. for a taxable year, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than zero.
(2) A tax credit recipient may carry forward any unused tax credit resulting from the limitations of paragraph (1) of this subsection or from the insufficiency of a tax liability, as applicable, for use in the five privilege periods or taxable years, as applicable, next following the taxable period for which the credits are awarded.
c. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., 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 business entity that is a New Jersey S corporation shall not be allowed the tax credit directly under N.J.S.54A:1-1 et seq., 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. (1) A tax credit recipient may apply to the director and the authority for a tax credit transfer certificate, covering one or more years, in lieu of the recipient being allowed any amount of the credit against the tax liability of the recipient. An application for a tax credit transfer certificate shall not be approved unless the authority affirmatively determines, based on such considerations as the authority deems appropriate, that the sale or assignment of the tax credit transfer certificate is socially beneficial to the State.
(2) Upon approval of an application for a tax credit transfer certificate, and upon receipt thereof by the recipient from the director and the authority, the tax credit transfer certificate may be sold or assigned, in full or in part, for an amount not less than $25,000, in the taxable period during which the tax credit transfer certificate is sold or assigned by the initial recipient to another person, who may apply the credit against a tax liability under the "Corporation Business Tax Act (1945)," P.L.1945, c.162 (C.54:10A-1 et seq.), the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and C.54:18A-3), section 1 of P.L.1950, c.231 (C.17:32-15), or N.J.S.17B:23-5, subject to the carry-forward authorizations set forth in paragraph (2) of subsection b. of this section. The certificate provided to the initial recipient shall include a statement waiving the recipient's right to claim the amount of the tax credit that the recipient has elected to sell or assign against the recipient's tax liability.
(3) The initial recipient shall not sell or assign, including a collateral assignment, a tax credit transfer certificate allowed under this section for consideration received by the recipient of less than 85 percent of the transferred credit amount before considering any further discounting to present value that shall be permitted.
(4) A purchaser or assignee of a tax credit transfer certificate pursuant to this section shall not make any subsequent transfers, assignments, or sales of the tax credit transfer certificate.
6. The authority, in consultation with the director and the Commissioner of the Department of Human Services, may adopt rules and regulations, in accordance with the ²Administrative Procedure Act,² P.L.1968, c.410 (C.52:14B-1 et seq.), as necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
7. There is appropriated from the General Fund to the Economic Development Authority the sum of $2,500,000 to provide grants pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
8. This act shall take effect immediately.
STATEMENT
This bill establishes the Inclusive Workplaces Program ("program") within the New Jersey Economic Development Authority ("EDA) to encourage investments in inclusive workspaces that accommodate neurodivergent employees.
Under the bill, the program would consist of two distinct components, including: (1) the issuance of grants to eligible small-business employers to support the development of neurodiversity-friendly workspaces; and (2) the issuance of tax credits to eligible large-business employers that have implemented workplace adjustments that foster neurodiversity-friendly workspaces.
Notably, the bill allows the EDA to award up to $2.5 million in grants annually and to award up to $2.5 million in tax credits annually to eligible employers that undertake certain capital investments and workforce investments intended to create a working environment that accommodates a neurodiverse workforce. Capital investments and workforce investments that employers may undertake include, but are not limited to: (1) sensory-friendly workspace layouts, such as quiet zones and lighting adjustments; (2) adaptive equipment and technologies, such as noise-cancelling headphones and organization tools; and (3) workforce training programs, such as staff mentorships and management seminars focused on neurodiversity.
Under the bill, eligibility for grants would be limited to employers that have their headquarters or base of operations in this State, employ fewer than 150 full-time employees, employ at least one full-time employee who identifies as neurodivergent; and demonstrate a commitment to inclusive workplaces with a focus on neurodiverse inclusion are eligible to apply for a grant under the program. Eligible small-business employers may apply to the EDA to receive a grant of up to $25,000 to fund qualified capital investments and workforce investments incurred after the date of the application. The bill appropriates $2.5 million from the General Fund to the EDA for grants.
Eligibility for tax credits would be limited to employers that have their headquarters or base of operations in this State, employ 150 full-time employees or greater, employ at least three full-time employees who identify as neurodivergent, and demonstrate a commitment to inclusive workplaces with a focus on neurodiverse inclusion are eligible to apply for a tax credit under the program. Eligible large-business employers may apply to the EDA to receive tax credits in an amount equal to the lesser of $25,000 or 50 percent of the qualified capital investments and workforce investments incurred by the employer before the date of the application.
Under the bill, the EDA would be permitted to prescribe the form and manner in which applications would be submitted for both program components. The bill also permits the EDA to approve applications on a rolling basis, subject to the annual limitations in grant awards and tax credit issuances for each program component.
The bill also appropriates $2.5 million from the General Fund to the EDA to support the provisions of grants under the program.
