Bill Text: NJ A3379 | 2020-2021 | Regular Session | Introduced
Bill Title: Establishes corporation business tax and gross income tax credits for certain providers of child care that undertake certain quality improvement initiatives.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-02-25 - Introduced, Referred to Assembly Women and Children Committee [A3379 Detail]
Download: New_Jersey-2020-A3379-Introduced.html
Sponsored by:
Assemblywoman GABRIELA M. MOSQUERA
District 4 (Camden and Gloucester)
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
SYNOPSIS
Establishes corporation business tax and gross income tax credits for certain providers of child care that undertake certain quality improvement initiatives.
CURRENT VERSION OF TEXT
As introduced.
An Act providing credits against the corporation business and gross income taxes for child care centers that undertake quality improvement initiatives and supplementing P.L.1945, c.162 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) A taxpayer that is a child care center licensed pursuant to P.L.1983, c.492 (C.30:5B-1 et seq.) that is awarded a three-star quality rating by Grow NJ Kids during the privilege period shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the privilege period in an amount determined according to the following table:
Number of Children Enrolled is: Amount of NJ Credit is:
Not Over 50 $275
51 to 99 $550
Over 100 $800.
(2) A taxpayer that is a child care center licensed pursuant to P.L.1983, c.492 (C.30:5B-1 et seq.) that is awarded a four-star quality rating by Grow NJ Kids during the privilege period shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the privilege period in an amount determined according to the following table:
Number of Children Enrolled is: Amount of NJ Credit is:
Not Over 50 $550
51 to 99 $1,075
Over 100 $1,600.
(3) A taxpayer that is a child care center licensed pursuant to P.L.1983, c.492 (C.30:5B-1 et seq.) that is awarded a five-star quality rating by Grow NJ Kids during the privilege period shall be allowed a credit against the tax due pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for the privilege period in an amount determined according to the following table:
Number of Children Enrolled is: Amount of NJ Credit is:
Not Over 50 $800
51 to 99 $1,600
Over 100 $2,400.
b. A taxpayer shall not be
allowed to claim the credit provided pursuant to this section or section 2 of
P.L. , c. (C. ) (pending before the Legislature as this bill) if
the taxpayer previously received a credit pursuant to this section for the
award of an identical or higher Grow NJ Kids quality rating.
c. 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.
d. 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) for a privilege period 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).
e. The amount of the credit otherwise allowable under this section which cannot be claimed for the privilege period by a taxpayer may be carried forward for use in the privilege period next following the privilege period for which a portion of the credit is initially claimed.
2. a. (1) A taxpayer that is a child care center licensed pursuant to P.L.1983, c.492 (30:5B-1 et seq.) or a family day care provider licensed pursuant to P.L.1987, c.27 (C.30:5B-16 et seq.) that is awarded a three-star quality rating by Grow NJ Kids shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 in an amount determined according to the following table:
Number of Children Enrolled is: Amount of NJ Credit is:
Not Over 50 $275
51 to 99 $550
Over 100 $800.
(2) A taxpayer that is a child care center licensed pursuant to P.L.1983, c.492 (30:5B-1 et seq.) or a family day care provider licensed pursuant to P.L.1987, c.27 (C.30:5B-16 et seq.) that is awarded a four-star quality rating by Grow NJ Kids shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 in an amount determined according to the following table::
Number of Children Enrolled is: Amount of NJ Credit is:
Not Over 50 $550
51 to 99 $1,075
Over 100 $1,600.
(3) A taxpayer that is a
child care center licensed pursuant to P.L.1983, c.492 (30:5B-1 et seq.) or a
family day care provider licensed pursuant to P.L.1987, c.27 (C.30:5B-16 et
seq.) that is awarded a four-star quality rating by Grow NJ Kids shall be
allowed a credit against the tax otherwise due for the taxable year under the
"New Jersey Gross Income Tax Act," N.J.S.54A:1-1 in an amount determined
according to the following table:
Number of Children Enrolled is: Amount of NJ Credit is:
Not Over 50 $800
51 to 99 $1,600
Over 100 $2,400.
b. A taxpayer shall not be allowed to claim the credit provided pursuant to this section or section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) if the taxpayer previously received a credit pursuant to this section for the award of an identical or higher Grow NJ Kids quality rating.
c. 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 the taxable year shall not reduce a taxpayer's New Jersey gross income tax liability to an amount less than zero.
d. (1) A business entity that is classified as a partnership for federal income tax purposes shall not be allowed a credit pursuant to this section directly but the amount of tax credit of a taxpayer in respect of a 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 credit directly, but the amount of the 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.
e. The amount of the credit otherwise allowable under this section which cannot be claimed for the taxable year by a taxpayer may be carried forward for use in the taxable year next following the taxable year for which a portion of the credit is initially claimed.
3. This act shall take effect immediately and apply to taxable years and privilege periods commencing on or after the January 1 next following enactment.
STATEMENT
This bill provides credits against the corporation business and New Jersey gross income taxes for child care providers that undertake certain improvements in quality of care delivery and training of care providers under the auspices of Grow NJ Kids, a program overseen by the Departments of Children and Families, Education, Health, and Human Services. The amount of the credit ranges from $275 to $2,400, depending on the Grow NJ Kids rating awarded to a child care provider and the number of children enrolled in the child care program.
The credit against the corporation business tax is available to child care center licenses pursuant to the "Child Care Center Licensing Act," that is awarded a three-, four-, or five-star quality rating by the Grow NJ Kids program. The credit against the New Jersey gross income tax is available to a child care center licensed pursuant to the "Child Care Licensing Act," or a family day care provider licensed pursuant to the "Family Care Provider Registration Act", that is awarded a three-, four-, or five-star quality rating by the Grow NJ Kids program.
The bill provides that a taxpayer cannot claim the credit if the taxpayer previously received a credit for the award of an identical or higher Grow NJ Kids quality rating, The credits are not refundable, but any unused credit may carried forward to the taxable year or privilege period next following that for which a portion of the credit is initially claimed.
Grow NJ Kids is the State's program aimed at raising the quality of early care and education by helping early care and education providers to continuously improve and providing parents with information to assist in their selection of high quality care and early education for their child.
