New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S2888

Introduced
3/4/24  

Caption

Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

Impact

If enacted, S2888 would directly impact New Jersey's taxation landscape by providing valuable credits that alleviate some of the financial burdens for businesses willing to hire qualified individuals. These credits are modeled after the federal Work Opportunity Tax Credit (WOTC), which has similarly sought to encourage the employment of underserved groups. The implementation of this bill may lead to an increase in the hiring of persons with developmental disabilities, contributing to more inclusive workplaces and opportunities for those individuals, as well as enhancing economic productivity in the state.

Summary

Bill S2888 aims to incentivize the employment of individuals with developmental disabilities by providing tax credits to businesses that hire them. Specifically, the bill allows for corporation business tax and gross income tax credits equal to 40 percent of the first $6,000 of wages paid to qualified persons with developmental disabilities, with a maximum limit of $2,400 per individual. This initiative is designed to encourage employers to diversify their workforce by hiring individuals who might otherwise face significant barriers to employment, effectively promoting inclusivity and economic participation among this demographic.

Conclusion

Overall, Bill S2888 represents a legislative effort to support individuals with developmental disabilities by facilitating their integration into the workforce through financial incentives for businesses. By aligning state tax policy with inclusive employment practices, the bill aims to create a more equitable labor market in New Jersey. However, careful consideration is needed to monitor its implementation and unintended consequences, ensuring that the benefits reach those who are intended to be supported while maintaining fair employment practices.

Contention

While the tax credits are generally viewed as a positive step toward increasing employment opportunities, some potential concerns have been raised. For instance, the bill includes provisions that prevent businesses from claiming credits if they are displacing existing employees in favor of hiring individuals with disabilities primarily to obtain the tax benefits. Critics may argue that ensuring the ethical application of these credits will be essential to prevent any misuse that could undermine job stability for current employees. Furthermore, the reliance on tax incentives for social inclusion raises questions about long-term sustainability and the effectiveness of such approaches in achieving real change.

Companion Bills

NJ A3462

Same As Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ A479

Carry Over Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ S1543

Carry Over Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

Previously Filed As

NJ S1543

Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ A479

Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ A3462

Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ S1516

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ S1313

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ A1379

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ A3279

Allows corporation business tax and gross income tax credits to businesses employing qualified ex-offenders.

NJ S4120

Provides corporation business tax credits and gross income tax credits to businesses employing and retaining certain neurodiverse individuals.

NJ S2918

Allows corporation business tax and gross income tax credits to businesses employing released nonviolent offenders.

NJ A4575

Allows corporation business tax and gross income tax credits to businesses employing released nonviolent offenders.

Similar Bills

NJ A479

Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ S1543

Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ A3462

Allows corporation business tax and gross income tax credits to businesses employing certain persons with developmental disabilities.

NJ S2604

Establishes program to incentivize hiring and continued employment of individuals with developmental disabilities.

NM SB260

Developmental Disability References

CA SB471

Office of the Developmental Services Ombudsperson.

NJ A1932

Establishes Division of Intellectual and Developmental Disabilities in DCF.

NJ S1243

Establishes Division of Intellectual and Developmental Disabilities in DCF.