Bill Text: NJ S2937 | 2018-2019 | Regular Session | Amended
Bill Title: The New Jersey Battlefield to Boardroom Act; provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-01-24 - Referred to Senate Budget and Appropriations Committee [S2937 Detail]
Download: New_Jersey-2018-S2937-Amended.html
SENATE, No. 2937
STATE OF NEW JERSEY
218th LEGISLATURE
INTRODUCED SEPTEMBER 17, 2018
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
Senator TROY SINGLETON
District 7 (Burlington)
Co-Sponsored by:
Senator Brown
SYNOPSIS
The New Jersey Battlefield to Boardroom Act; Provides corporation business tax credits and gross income tax credits for qualified wages of certain veterans.
CURRENT VERSION OF TEXT
As reported by the Senate Military and Veterans' Affairs Committee on January 24, 2019, with amendments.
An Act establishing a corporation business tax credit and gross income tax credit for qualified wages of certain veterans, 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. This act shall be known and may be cited as "The New Jersey Battlefield to Boardroom Act."
2. a. (1) For privilege periods commencing on or after January 1, 2018 but before January 1, 2022, 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 the value of ten percent of qualified wages paid in the privilege period to a qualified veteran in the course of sustained employment. For each privilege period, a taxpayer's credit allowed pursuant to this section shall not exceed $1,200 for each qualified veteran.
(2) For a taxpayer to qualify for the credit allowed pursuant to this section for a privilege period, the taxpayer shall comply with the requirements of this paragraph.
Twenty-five percent of the taxpayer's new employees for the privilege period for which credit is claimed shall be qualified veterans.
If the taxpayer received the credit allowed pursuant to this section for the privilege period immediately preceding the privilege period for which credit is claimed, then 50 percent of the qualified veterans hired in the immediately preceding privilege period shall remain employed by the taxpayer for the privilege period for which credit is claimed.
The taxpayer shall provide veteran support services that are accessible in the workplace, which services may, but not necessarily, be procured through a private veteran support services service provider.
The taxpayer shall regularly conduct specific recruitment efforts to hire qualified veterans and their nuclear family members.
The taxpayer shall provide support to outreach efforts of veteran support organizations.
The taxpayer shall comply with the federal Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. s.4301 et seq.) and provide additional privileges in excess of the rights protected by the federal Uniformed Services Employment and Reemployment Rights Act.
b. (1) 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, added together with any other credit allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), shall not exceed 50% of the tax liability otherwise due and 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.
Unused credit resulting from the limitations of this paragraph may be carried forward, if necessary, for use in the seven privilege periods following the privilege period for which the credit is allowed.
(2) A taxpayer shall not be granted a credit pursuant to this section for the qualified wages paid to a qualified veteran in a privilege period if the qualified wages of the qualified veteran or the job providing qualified wages to the qualified veteran is included in the calculation of another credit against any State tax or a grant pursuant to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides with the applicable privilege period.
(3) If the director determines that a taxpayer is displacing employees and replacing the employees with qualified veterans for the primary purposes of obtaining the credit allowed pursuant to this section, the director shall deny the credit allowed under this section for the taxpayer and shall issue a tax assessment for the recapture of credit previously allowed to the taxpayer under this section plus an assessment of 50% of any credit subject to recapture as penalty.
c. As used in this section:
"Sustained employment" means a period of time no less than 185 business days during the privilege period in which a qualified veteran is earning qualified wages.
"Qualified veteran" means a resident of this State initially hired by the taxpayer on or after January 1, 2010 that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, 1965, in any branch of the Armed Forces of the United States1, and who has shown proof of military service by providing a copy of the DD-214 form, its equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code1.
"Qualified wages" mean any salaries, wages and remuneration subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., paid to a qualified veteran on or after January 1, 2018 but before January 1, 2022 for labor rendered in service to an enterprise of the taxpayer.
3. a. (1) For taxable years commencing on or after January 1, 2018 but before January 1, 2022, a taxpayer shall be allowed a credit against the tax due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to the value of ten percent of qualified wages paid in the taxable year to a qualified veteran in the course of sustained employment. For each taxable year, a taxpayer's credit allowed pursuant to this section shall not exceed $1,200 for each qualified veteran.
(2) For a taxpayer to qualify for the credit allowed pursuant to this section for a taxable year, the taxpayer shall comply with the requirements of this paragraph.
Twenty-five percent of the taxpayer's new employees for the taxable year for which credit is claimed shall be qualified veterans.
If the taxpayer received the credit allowed pursuant to this section for the taxable year immediately preceding the taxable year for which credit is claimed, then 50 percent of the qualified veterans hired in the immediately preceding taxable year shall remain employed by the taxpayer for the taxable year for which credit is claimed.
The taxpayer shall provide veteran support services that are accessible in the workplace, which services may, but not necessarily, be procured through a private veteran support services service provider.
The taxpayer shall regularly conduct specific recruitment efforts to hire qualified veterans and their nuclear family members.
The taxpayer shall provide support to outreach efforts of veteran support organizations.
The taxpayer shall comply with the federal Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. s.4301 et seq.) and provide additional privileges in excess of the rights protected by the federal Uniformed Services Employment and Reemployment Rights Act.
b. (1) A credit allowed pursuant to this section shall not reduce the tax liability otherwise due pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year to less than zero.
Unused credit resulting from the limitations of this paragraph may be carried forward if necessary to the seven taxable years following the taxable year for which the credit was allowed. The form and method of carry forward shall be as prescribed by the director.
(2) A taxpayer shall not be granted a credit pursuant to this section for the qualified wages paid to a qualified veteran in a taxable year if the qualified wages of the qualified veteran or the job providing qualified wages to the qualified veteran is included in the calculation of another credit against any State tax or a grant pursuant to P.L.1996, c.26 (C.34:1B-124 et seq.) for a period of time that coincides with the applicable taxable year.
(3) If the director determines that a taxpayer is displacing employees and replacing the employees with qualified veterans for the primary purposes of obtaining the credit allowed pursuant to this section, the director shall deny the credit allowed under this section for the taxpayer and shall issue a tax assessment for the recapture of credit previously allowed to the taxpayer under this section plus an assessment of 50% of any credit subject to recapture as penalty.
c. As used in this section:
"Sustained employment" means a period of time no less than 185 business days during the privilege period in which a qualified veteran is earning qualified wages.
"Qualified veteran" means a resident of this State initially hired by the taxpayer on or after January 1, 2010 that has been honorably discharged or released under honorable circumstances from active service, occurring on or after January 1, 1965, in any branch of the Armed Forces of the United States1, and who has shown proof of military service by providing a copy of the DD-214 form, its equivalent, or federal activation orders showing service under Title 10, section 672 or section 12301, of the United States Code1.
"Qualified wages" mean any salaries, wages and remuneration subject to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., paid to a qualified veteran on or after January 1, 2018 but before January 1, 2022 for labor rendered in service to an enterprise of the taxpayer.
4. This act shall take effect immediately.
