New Jersey Assembly Bill A1046

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Provides corporation business tax and gross income tax credits for employing immediate family members of members of the Armed Forces of the United States who were killed in action.

Impact

If enacted, A1046 will have a significant effect on state tax law by allowing specific tax credits dependent on the employment of military family members. The potential fiscal impact includes offsetting costs for employers who choose to hire these individuals, thereby promoting job creation within the community. This act also strengthens support for military families, emphasizing the state's commitment to those who have suffered the loss of family members in military service by providing them with economic support in the form of employment opportunities.

Summary

Assembly Bill A1046 aims to establish corporation business tax and gross income tax credits for employers who hire immediate family members of members of the Armed Forces of the United States who have been killed in action. The bill stipulates that employers can receive a credit of ten percent of the wages paid to these family members, capped at $1,200 per family member each tax year. To qualify, the family member must be a new employee, employed full-time for a minimum of nine consecutive months in the state of New Jersey. These credits are designed to support military families and encourage employment opportunities for them through financial incentives for businesses.

Contention

While the bill is generally expected to garner support for its intentions to benefit military families, there may be concerns regarding the implications for the state budget due to the tax credits offered. Some lawmakers might debate the effectiveness of such economic incentives in creating sustainable employment and whether employers might exploit these credits without providing long-term job security. Additionally, the specifics around what constitutes qualifying wages and the restrictions on simultaneous use of tax credits could lead to discussions about fairness and implementation challenges in the business community.